Startups presenting business plans to VCs have a much better chance of getting a meeting and maybe an investment if they know the VC already, so the first answer to the question “what is the best way to approach a VC?” is to get to know them before you want to pitch them for money. My co-author in this series Nicholas Lovell likes to say, ‘VCs invest in lines not dots” by which he means that if when you come to ask for money a VC can see how the story you have told her over the last 6-12-24 months has unfolded more or less according to plan (i.e. a line), or that if the plan has changed the changes have been sensible, then your credibility will be much greater than if the assessment is solely based on a plan received at a point in time (i.e. a dot). UPDATE: Nicholas rightly tells me I should credit Mark Suster with the ‘lines not dots’ analogy, see here for his post on the subject.
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Author: Nic Brisbourne
