Getting to Know the Investment Process Better with the Experts
Advice from Lever VC, Where to Meet the Investors, and How to Navigate the Daunting Investor Interview Process
Welcome to Changemakers, the official newsletter of Brighter Future.
Thank you to everyone for being a part of this journey and joining us for the latest edition of the Brighter Future newsletter. Each newsletter will include insights on brand storytelling, conversations with investors and founders, and deep dives into different aspects of planet-driven business.
This week, we’re shifting our focus back to the investment side of the process, and sharing some insights on making connections to support your work, the qualities investors are looking for in their startups, and how to navigate the VC interviews.
Check out this week’s topics…
The Key Qualities Investors Look For in a Startup with Nick Cooney
The Power of Making Connections - Notes From the Impact Festival
How to Handle Venture Capital Funding Interviews with Aaron Leaman
Storytelling Presentation and Updates
The Key Qualities Investors Look For in a Startup with Nick Cooney
Nick Cooney is a managing partner of Lever VC, which has a comprehensive funding portfolio of early-stage companies working in food and agricultural technology, and other early stage climate tech.
Cooney brings nearly two decades of experience in the food and agriculture space to his role as managing partner, and his extensive background has given him a nuanced understanding of the industry's challenges and opportunities.
We asked Nick about the key traits and qualities he looks for in startups and how their company assesses their fit into the fund. He shared some of his insights below.
To learn more about his work, the investment landscape, and his advice for startups in the investor spotlight, check out the link below.
What are the key qualities that you look for in a startup?
On the general side, founder quality is very important— their intelligence, pragmatism, work ethic, and openness to new ideas. Team quality is also key. We look for best-in-class projects within large geographic regions or globally. The technology should offer notable improvements in quality, cost, or other significant consumer benefits. Market size is another consideration.
For specific categories, we examine more granular aspects. For branded food companies, we analyse revenue growth, velocity growth, and point-of-sale turnover. These specifics vary depending on the company type and business strategy.
The Power of Making Connections - Notes From the Impact Festival with Eeden
Last year, a few of the Brighter Future team attended the Impact Festival, an annual B2B gathering in Frankfurt, Germany, for planet-driven organisations working on sustainable innovation. The festival attracts individuals from around the world and brings together many brilliant and sensational ideas over the course of the two-day event.
Last year, at the Impact Festival, we had the opportunity to meet the team from eeden, a startup working to develop a circular textile economy. Eeden was the Impact Award winner last year, and we were able to connect with them to learn more about their incredible work and vision for the future of the industry.
The connection sparked a collaboration with their team to develop their brand, cultivate their identity, and lay the foundation for future growth. Eventually, these efforts to redefine eeden’s brand and chart a path forward for their company led to them signing a major Letter of Intent (LOI).
We share this story because it highlights the potential for collaboration that comes from attending these conferences, festivals, and mixers.
In many ways, successful brands use these events to grow their network and find funding for their startup. These events are also an opportunity to learn from the experiences of fellow founders, listen to advice from investors, and advocate for your idea and vision of the future.
The true magic of these types of events is that you never know who you are going to meet that could become a vital step in your organisation’s journey to success.
As for our team, we’re very grateful we got out there and connected with the wonderful individuals at eeden. We’re proud to say we had the chance to play a part in building something truly incredible for the future of the textile industry.
To learn more, check out eeden’s website or read our conversation with one of their co-founders, Steffen Gerlach, at the link below.
How to Handle Venture Capital Funding Interviews with Aaron Leaman
Navigating the discussion during venture capital funding interviews can be a bit daunting for any new entrepreneur. These meetings can often be overwhelming and feel very one-sided, especially when they are so crucial to opening the doors for your organisation’s future success.
The truth is - they don’t have to be.
In reality, these interviews should be more of a conversation between your company and the venture capital fund. These conversations provide the opportunity for you to assess each other and to see if you are a suitable match.
For our founder, Aaron Leaman, it took years to understand this and learn how to approach these interviews in a more confident and productive manner.
Through many interviews with VCs and his recent collaborations with investors, he’s found a few simple yet powerful strategies for navigating these funding interviews and shared them below.
Gauge Their Preparedness
If the VC struggles to articulate their concerns or gives vague responses, it’s a red flag that they might not have done their homework. This insight is invaluable—it can save you time and help you prioritise who to engage with further. Remember, it’s just as important for you to evaluate them as it is for them to evaluate you.
Focus the Discussion
Understanding what the VC is thinking upfront allows you to steer the conversation effectively. You can directly address their concerns and highlight the aspects of your business that are most relevant. This approach transforms your pitch from a generic presentation into a targeted discussion, which can help dispel any preconceived notions or biases the VC may have about your industry or business model.
Develop a FAQ
As you consistently ask about uncertainties and concerns, you’ll notice patterns in the questions VCs ask. Use this information to develop a comprehensive FAQ for future meetings. By preemptively addressing these common concerns, you’ll be better prepared, and your pitch will resonate more strongly with potential investors. This also enables you to bulletproof your pitch deck by incorporating feedback you gather through these conversations.
Obtain Real-Time Feedback
It's crucial to prompt the VC to share their thoughts at the end of the meeting. You’ll likely receive more honest and immediate feedback, which is often more actionable than a delayed follow-up. This can give you a clearer idea of how your pitch landed and what adjustments you might need to make in the future.
Be Mindful of Time
If a concern is raised at the end of the meeting, resist the urge to dive into a lengthy explanation unless there’s enough time. Instead, take note of the feedback and follow up with a brief, targeted email afterward. Additionally, incorporate the insight into your approach for future discussions."
In today’s environment, where economic pressures are leading to less active VCs, it’s more important now than ever to be strategic in your interactions. Every interview should be viewed as a chance for collaboration, an equal opportunity for your company and the venture capital fund to work together.
By using these tools and methods of approach, you can demonstrate your long-term commitment to success and give the VC confidence in your leadership and belief in the future of your work.
If you have more questions about venture capital interviews or if there are any other topics you’d like to see discussed in this newsletter, leave a comment and share your thoughts with the link below.
Brighter Future Storytelling Presentation
Just another reminder to sign up for the upcoming storytelling presentation on Origin & Vision stories with Aaron on Friday, October 11, 2024, at 17:00 BST.
During the presentation, Aaron will be discussing the process of uncovering your narrative and using these organisational stories to find investors, establish brand loyalty, and attract top-tier talent.
As a team, we’ve recently decided to remove the fees for this presentation and make it free of charge for anyone interested. Still make sure to register on Eventbrite because spots for the presentation are limited.
Let’s Tell Your Story
We’re open to connecting with any founders or organisations for consultations meetings to discuss our brand-building and storytelling packages.
We’re here to help your organisation develop a planet-driven brand identity, provide some storytelling for your work and elevate your impact on the world; book a consultation call with us below.
Thanks for joining us this week, we’ll be back with another edition of Changemakers in two weeks.
Cheers,
The Brighter Future Team
