A Sneak Peek into a VC’s Mind
Ask any entrepreneur, and they’d tell you that a major challenge in bringing their startup idea to life is raising funds.
Startup founders sweat it out time & again to create a killer pitch. And some of the thoughts that truly haunt them while they are at it are — What do investors actually look for in a startup? What are things that I need to keep in mind here?
So, we turned the mic on the man behind the fund himself, Pranav Pai, the founding partner at 3one4 Capital — one of our amazing investors at Open.
And we geared up for an amazing OpenUp session - Reverse Pitch with 3one4 Capital.
The session saw Pranav spill the beans on what 3one4 Capital looks for in their dream startups. He gave some amazing insights for entrepreneurs to rev up their startup to the next level.
Let’s dive in!
The question on everyone’s mind
If granted a wish, every startup entrepreneur would want a peek into a VC’s mind. Just to know what goes on there during a pitch session. And that’s what everyone was most curious to know about at our OpenUp session.
Pranav Pai says , “VCs don’t really expect you to come with 100% answers. They just want your startup idea to be powerful enough to drive a generation”. You have to know the space you’re diving into to a T to make the person across the table believe in you. If you’re able to ace that one question that none of your competitors have, then their money is all yours.
Another key insight that he shared was that, currently late stage venture funding is growing much faster than early stage funding. That said, if you’re an early stage startup there’s nothing that should stop you from pitching to VCs. Just reverse engineer your plan before entering a pitch session. You might strike a chord with the investors & get that funding you’ve always wanted.
What could make or break your game?
Pranav also threw some light on other areas that play a pivotal role in getting your startup funded.
Generating an all-powerful business model with a clear motivation for your idea is of absolute importance. If you are a growing startup seeking venture funding then you have to be sure about the ‘return generating capacity’ of your money.
Building a great team & seamless execution is another aspect that VC funds look for. As a startup founder, you’ve got to make sure that your teammates are aligned with the bigger picture of your startup.
One of the least tangible factors is Timing — you should be able to convince the investors that this is the right time for your startup to go out in the market.
Another game-changer that could get you funded by some amazing VCs is developing a positive feedback loop & winning the trust of your stakeholders.
Join the #OpenUp Club
We hold a great OpenUp session every month. Right from reverse pitches, ask me anything sessions, to meetups with startup experts, closed door pitches and more.
Stay tuned to be the first to know when we announce the #OpenUp for this month.
Meanwhile, join our OpenUp Club to connect with amazing network of entrepreneurs & have candid conversations about the good, bad, and dark side of building one’s own empire.
We’ll be waiting for you hustler! 🙋
