CUSTOMER DISCOVERY PROS
The Power of
​Customer Discovery
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Customer Discovery is an essential part of your toolkit to understand what customers need and are willing to pay for.  Read more...
Smart Audience
​Engagement
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It takes persistence and active listening to hear customer pain points. You also have to make your valuable time very productive by leveraging it by a minimum of 5-1. Read more...

Use Customer Discovery for Better
Funding Success with VCs
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Hint: look for the red and black dots.
​The odds of raising VC money are staggering - against you.  This amazing visualization tells the incredible story. Learn more...
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Getting Ready for the US Market
Market entry to the US is complex, expensive and time-consuming. Make sure you get a head-start!  Learn more...
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6/15/2023

Customer discovery for finding VC Funding

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Do your homework to get funded by VCS

The chances of a startup receiving funding from a venture capitalist (VC) is 5% of the overall funding total. It can vary greatly and depend on many factors - including your willingness to do customer discovery (below)- about the investors.  

First, here are the typical considerations:
Market Potential:
​VCs are interested in startups that operate in large and growing markets. If your startup is in a niche market, the chances of getting VC funding may be lower.
Unique Value Proposition:
​Your startup needs to offer a product or service that is unique and solves a significant problem. If there are many other companies offering similar products or services, it may be harder to secure VC funding.
 
Team:
​VCs invest in people as much as they invest in ideas. A strong, experienced team with a track record of success can significantly increase the chances of receiving VC funding.
Business Model:
​Your startup needs a clear path to profitability. VCs want to see that you have a solid business model and a plan for how you will make money.
Traction:
Demonstrating some level of traction, whether it's user engagement, sales, partnerships, or other key performance indicators, can significantly improve your chances of securing VC funding.
Investment Stage:
VCs often specialize in different stages of investment (e.g., seed, Series A, B, C, etc.). Your startup's stage of development needs to align with a VC's investment focus.
Network:
Many VC deals come from within the VC's network. Having a warm connection to a VC can greatly increase your chances of securing funding.
Chances for Success
Despite these factors, it's important to note that the overall percentage of startups that receive VC funding is relatively low.

In a 2020 report from Fundable, only about 5% of startups are funded by VCs, and the process IS highly competitive.

While VC funding can provide significant resources for growth, startups should also consider other funding options, such as angel investors, crowdfunding, or bootstrapping.
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Improve your chances of funding success

You can improve your chances of funding success by truly understanding the needs of investors.
  • Find out their investing preferences - are they focused on seed funding or Series A?
  • Are they focused on deep tech, fin tech or edtech?
  • Keep them informed - they may not be able to help you, but certainly there is someone in their network who does.
  • Respect their intelligence - don't bombard them with unsolicited requests.
  • Research their interests and then match your outreach to them.
  • Make sure you - as CEO - does the outreach - noone else!

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    Randy Fisher

    Entrepreneurship, innovation, marketing, customer segmentation & tickling curiosity.

    View my profile on LinkedIn

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Website by DigiWise Digital Solutions LLC
  • Home
  • About
    • Our Difference
    • Team
    • Services
    • FAQ
    • E-Books
    • Resources
    • Courses & Workshops
    • Webinars >
      • Webinars for Charities and Nonprofits
  • Case Studies
  • Testimonials
  • Social Impact
  • Blog
  • Contact