Wait, is that this even bodily attainable?”
Fundraising is difficult for each startup, however solely deep tech startups face questions like this from VCs. Innovation usually 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 the way to spend money on your thought when it feels like sci-fi?
Nobody desires to spend money on the subsequent Theranos
A VC’s job is to search out the subsequent largest firm. To do that, they should perceive what the corporate does and the way it makes cash. VCs hear massive claims each day and don’t need to be taken for fools.
In consequence, they normally 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 actually cutting-edge.
As with every different fundraising problem, the secret’s to place your self within the investor’s sneakers and construct your pitch round that.
Earlier than you begin fundraising, it’s value asking your self: How doubtless is it {that a} VC will actually 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 should be very conversant in 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 assume your claims are fraudulent — as was the case for years with Theranos — you most likely received’t appear credible in the event you’re the primary particular person making this declare. How are you going to cope with this skepticism and assist VCs go from considering, “That is sci-fi,” to “That is the subsequent massive factor”?