Wait, is that this even bodily attainable?”
Fundraising is tough for each startup, however solely deep tech startups face questions like this from VCs. Innovation typically doesn’t come with out points, and there are issues no matter how good your idea is, or how superior your know-how is.
Your pitch could be the primary time a VC has even heard of an idea, so how can they probably work out learn how to put money into your thought when it feels like sci-fi?
Nobody desires to put money into the subsequent Theranos
A VC’s job is to seek out the subsequent greatest firm. To do that, they should perceive what the corporate does and the way it makes cash. VCs hear large claims on daily basis and don’t need to be taken for fools.
In consequence, they often deal with new concepts with skepticism and have a tendency to keep away from investing once they don’t perceive one thing. This disadvantages deep tech and people engaged on one thing that’s really cutting-edge.
As with every different fundraising problem, the bottom line is to place your self within the investor’s sneakers and construct your pitch round that.
Earlier than you begin fundraising, it’s price asking your self: How possible is it {that a} VC will really perceive my tech and even have heard of it earlier than? How a lot does the general public find out about this space? Is it being reported within the common media, or is it nonetheless solely being mentioned in specialist journals?
Would a VC must be very accustomed to the most recent analysis in your space or have attended a specialist convention? Take into consideration how your claims will sound in case your pitch is the primary time somebody has heard of this concept.
The factor is, even when an investor doesn’t suppose your claims are fraudulent — as was the case for years with Theranos — you in all probability received’t appear credible if you happen to’re the primary individual making this declare. How are you going to take care of this skepticism and assist VCs go from pondering, “That is sci-fi,” to “That is the subsequent large factor”?
