When it comes to confidence, a rosy outlook among VC’s can be clouded. And that will cast a shadow on the future of start-ups everywhere. Here are some of the symptoms to recognize, and treatments to keep the VC community healthy and fit.
Relevance fatigue. This happens when a mediocre or underdeveloped startup idea is failing to thrive. To keep VCs engaged, show them that you have created something that solves a real problem. Fascinate VCs with your solution. A dose of creativity will awaken VC confidence by showing them how your startup meets a real need.
Over valuation syndrome. Take it easy. Excess initial capital investment can inflate valuation and wages. Plan for a conservative initial funding. Prove the hype and give the VCs hope. Better this than bursting a bubble and having to ride out a reconciliation. Healthy levels of investment by VCs and robust innovation among determined entrepreneurs will help boost confidence.
Acquired and hired deficiency. VCs get cynical about established companies with cash flow acquiring startups once R&D efforts prove potential value, or, hiring away personnel in the talent wars. Make sure you and your staff are committed to your idea in the long haul, and that the VC is positioned to thrive with the startup. A strong IPO market will boost VC confidence—just what the doctor ordered.
In the future high-growth entrepreneurial environment, it is imperative to ensure healthy VC confidence levels to feed the needs of innovation. As entrepreneurs discover new opportunities, it will be important to show creativity, conservativeness, and commitment in order to fortify VC confidence.