6 Steps to Get the Attention of Any Venture Capitalist
By Schuyler Brown
5. Set expectations.
Investors need to know exactly what you plan to do with the money you raise.
In the early days of Betterment, the goal based online investment platform, co-founder Jon Stein learned that lesson the hard way when raising a Series A in 2010: “I had only a loosely formed idea of what we’d do with the money. Obviously we wanted to hire some people and grow and serve more customers, but I [only] had rules of thumb in mind.”
He struggled to persuade investors until he could confidently answer a few specific questions for the investors such as “what the things we’d accomplish in a year, which hires it would require, how much that would cost and how investors should judge our success.”
According to Stein, “having a cohesive story was game-changing. We ended up closing $3M” and Betterment’s gone on to become a unicorn worth over $1B.