Moonshot startups, those Bold ideas that promise to reshape our world are, by nature, about venturing into uncharted territory, giving us new superpowers and creating new markets. It’s high risk, high reward and, more often than not, deep technology. As someone who navigates these waters, I see first-hand that when securing funding, it is just as important to mobilize general VC funds as it is to mobilize sector-specific investors for your round.
Yes, having investors who specialize in a particular sector is invaluable. But we should not underestimate the power of the general perspective. It offers something different – a broader, more expansive view. However, convincing public venture capitalists to bet on these ambitious ideas is an art.
The task is doubly daunting in a tense economic environment. Just look at our bio pharmacy. It is expected that the industry has lifted The lowest total in four years. When portfolio conditions tighten, VC firms – especially those without a deep understanding of the specific technical field – often revert to a more conservative approach to investing. This conservatism can inadvertently marginalize the most transformative ideas that promise significant financial returns and societal impact.
So, how can founders of high-ambition, deep-tech startups navigate these choppy waters? How do they convince public venture capitalists to invest in ideas that require a leap of faith and, perhaps, a leap of understanding? Drawing on my experience raising my own reproductive technology company, Orchid, I’ve outlined key strategies to help founders navigate this journey.
Tell an epic story about how the world would be better if you won
First and foremost, the key is effective communication. Translate your complex technical vision into a story that resonates with a wide range of investors. It’s not about dumbing down the technical aspects or downplaying the importance of the science; Instead, it involves crafting a story that highlights the potential impact and value of the idea. Investors need to see not only the brilliance of the concept, but also its practical implications – how it addresses a real-world problem, the size of its potential market, and its feasibility.
Translate your complex technical vision into a story that resonates with a wide range of investors.
Every great project has a story – a story of challenges, achievements and visions for a changing world. Telling this story in a compelling way can capture the imagination of generalist venture capitalists, who are often looking for the next big idea to disrupt the market. General guide to follow:
- why now: Start by putting the problem your project solves in context. Explain why this problem has not been solved yet and what has changed that makes now a good time to solve it. Draw a picture of the current landscape and the gap your technology aims to fill. This is especially important for successful ideas, which often have higher costs in R&D and capital expenditures, but are only now becoming possible due to other recent technological breakthroughs.
- Humanizing technology: At the heart of every technical solution is a human problem. Relate your technology to real-life scenarios and potential impacts on people’s lives. This human connection makes complex ideas more relatable and compelling.
- Show momentum and velocity: Share the story of your company’s evolution – challenges faced, accomplishments achieved, and lessons learned. Show that you can punch above your weight in terms of who you can attract and what you can do. Show that you can do more with less. You want to demonstrate flexibility, innovation, and progressive realization of your vision. General venture capitalists hear many offers from software companies that promise amazing growth. Your startup needs to build momentum to compare.