Elizabeth Galbut is a venture capitalist, designer, professor, and global speaker on healthcare innovation. She is a Co-Founder and Managing Partner of SoGal Ventures which invests in diverse founding teams in the US and Asia.
Elizabeth Galbut offers these five guiding principles for raising venture capital.
Before seeking investment, ensure your business has achieved key milestones such as proof of concept, product-market fit, or initial revenue generation. Investors are more likely to be interested in companies that have demonstrated traction and potential for growth. Timing is crucial because seeking funding too early can lead to unnecessary dilution or rejection from investors.
Craft a narrative that communicates your business's mission, vision, and value proposition in a compelling way. Investors are not just interested in numbers; they want to understand the story behind the business and what sets it apart from competitors. Ensure consistency in messaging across all communication channels, including pitch decks, presentations, and meetings, to reinforce your brand identity and build trust with investors.
Research potential investors to identify those who have a track record of investing in your industry, stage of development, and geographic location. Look for investors who not only provide capital but also bring relevant expertise, networks, and resources to help grow your business. A good match between your business and investors increases the likelihood of securing funding and receiving valuable support beyond financial investment.
Don't limit yourself to a small pool of investors; instead, reach out to a diverse range of potential investors, including angel investors, venture capitalists, and strategic partners. Networking events, pitch competitions, and online platforms can help you connect with investors. Be prepared for rejection and maintain persistence throughout the fundraising process. It's common to engage with numerous investors before finding the right fit.
Pay attention to every aspect of your presentation, from your pitch deck and website to your personal appearance and demeanor. Make sure your materials are well-designed, error-free, and visually appealing. Practice your pitch until it's polished and confident, and be prepared to answer questions effectively. A positive and professional first impression can significantly influence investors' perception of your business and increase your chances of securing funding.
