With Reggie Bradford of Oracle, Neil Sequeira of Defy Partners, and Stacy Curry Bishop of Scale Venture Partners
Venture Capital also Changes Very Quickly in Technology.
Like the startup environment, venture capital has also evolved with the changes in technology and approaches to helping companies launch and grow. And, that’s exactly what Reggie Bradford of Oracle, Neil Sequeira of Defy Partners, and Stacy Curry Bishop of Scale Venture Partners sat down at the Startup Grind Global Conference to discuss.
Many Changes in the Types and Models of VC's.
For Bradford and Sequeira, both have been founders and now VCs so they see how both side works and how both environments have changed over the course of the last few years. One of the biggest changes has been the various types of VCs and models now available to help startups of all sizes and stages also across very niche segments. There are even many opportunities for later stage investments that weren’t previously an option. This makes it a great time to be an entrepreneur.
Money is not Easy to "Get."
However, as the three VCs noted, that doesn’t mean it’s easy to just get money and run with it. They provided many key pieces of advice to help make the VC relationship work well. The first piece of advice is to not look at every VC as they are the same. They each have different values, stories, goals, and strategies. Also, the VCs noted that it is important to not take each “no” personally because VCs have other reasons for turning down a startup that may have nothing to do with your business, model, or objective.
What is Critical for the Entrepreneur to "Do?"
The VCs also observed that many entrepreneurs do not do some critical things that could make all the difference to finding the right VC partner for them. The first is that they do not interview the VC firm and ask for references. This due diligence is critical yet most don’t make the effort. This time investment is well worth it and will help get to the right VC.
Start Building Relationships With VCs Now.
Bishop also advised that it was a good idea to start building a relationship with VCs well before you are even going out to ask for funding. That time a year or so ahead of needing a funding round could go toward establishing trust and building a relationship.
It will also allow the VC to watch how you approach your startup launch or development. Having that relationship ahead of time will also help should anything go wrong once the funding relationship starts because you and the VC will know each other and be able to work through it.
The VCs also shared how the changing environment is tied to a shift in the type of companies and technology that is now emerging.
Case in point is artificial intelligence and the numerous ways and applications that have added an AI or machine learning layer to what they do. Also, there are more startups also going after legacy industries and working on revamping them into efficient and innovative models that have gone through a digital transformation.
Don't Burn Through Money.
Finally, the VCs note that even though time has sped up in many ways for deals and funding, one thing remains the same. They advise not burning through money but ensuring it lasts all the way through the launch. It’s essential to keep the cash to handle an unexpected pivot or issue that arises. Only then can the VC relationship really work and benefit everyone involved.