Seeking VC investment: what we learnt

For our SaaS startup (www.uptivity.co.uk), we need investment to take us to the next level.

Some companies seek an investment with just an idea. We already have a product on the market. We need to build it further and to (much) better market it. That's where the money will be spent.

We have no knowledge about how to pitch other than what we can learn on the internet. If we were in Palo Alto or even London, we could mix with other startups and VCs and pick up advice.?But we're in Newcastle.

So what did we do, and what did we find out??

1. We applied to about 10 VC funds via their website. Some, like Sequoia Capital , just require an email directly to a person you choose based on their profile and investment interests. I was enthralled by Micheal Moritz's profile because it was short, to the point and (therefore) engaging. I didn’t know at the time that Micheal is a professional writer, but it shows.?
2. Most VCs require a form filled out on their website. It's a bit time-consuming, especially where you might answer a question in detail only for the next page to require the detail. Then having to go back to re-write the previous one. But generally, this format is fine.?
3. Some VCs mention what type of investment they look for and which they have already made. But they don’t indicate how to propose an investment opportunity. Most have given an office address without specifically saying to write to them.?
4. General lessons learnt: a) Each application has to be bespoke and tailored try to find commonality in their investment portfolio and what you are offering. b) Don't give up easily or be thin-skinned about rejection. c) Respond even to rejection emails, thank them and ask for tips and advice. d) Try to find an angle; if you are a woman, find funds which look for female founders. e) Look at your business. Continue to improve that. The more sales you get, the better your chances of getting funding or not needing it.

We applied to 12 VC funds over two months ago. I wrote bespoke investment applications. No copy&pasting. Whenever I write, I always make it short, to the point and engaging to read. Even though being a good read isn’t the purpose, I’d rather not send something which wasn’t enjoyable. That’s because I’m a writer in my spare time (and increasingly, it feels like my calling).

We have had three rejections. The rejections gave little or no information on the reason. Is it our pitch, our numbers, our products, our people??

This is the biggest disappointment isn’t the rejections. With our inexperience, that was almost expected. It’s the lack of feedback to improve. Although maybe could have been expected because it’s not their job to educate us. So what to do now??

There are additions to this article on our website.

#investing #startup #saas #venturecapital