Welcome to our series of articles on the recent Web Summit 2022, a premier event in the tech industry. In this series, we will be highlighting some of the most exciting and interesting presentations, panels, and events that took place at the conference. From keynotes by industry leaders to breakout sessions covering the latest trends and developments in technology, there was no shortage of thought-provoking content at this year's conference. We hope you enjoy reading about the Web Summit 2022 as much as we enjoyed attending it!
CULTIVATING VC INVESTOR RELATIONSHIPS AND LONG-TERM PARTNERSHIPS
In their panel on “Cultivating investor relationships and long-term partnerships” at the 2022 WebSummit, Harry Nelis of Accel Partners and Samir Desai, the founder of Super Payments, discussed what it takes for a start-up to find (and to attract) the right venture capitalists.
Warm introductions to VC firms
Both panelists highlighted the importance of warm introductions in the venture capital field. A market of a few is all you need when you are starting off : despite the truckload of rejections you may face from the venture capital industry as a whole, it is important to keep networking and to be resilient. Early stage companies will all eventually find the right venture capital firm, who will be interested enough to help them raise money. Harry Nelis also highlighted how, at his venture capital fund, most of the selected projects came from warm introductions. Venture firms expect a great track record from founders as well, which can help secure additional capital. The slow-down in the VC investments market is also no reason to worry, according to the panelists : successful startups have been know to stem from times of crisis, and there is, in fact, a lot of money out available from many VC funds.
On sales skills and choosing the right VC fund
It is no secret that great sales skills matter to close venture capital deals: venture capital investors look for ambitious, tenacious and convincing people, who they know will put vc money to good use. But startup founders are not necessarily great salespersons right off the bat ; according to Samir Desai, successful venture funding relies on being able to present a small reliable team, very involved in the company’s management, to angel investors — thus build a true identity for your company. One-on-one trusted collaboration is most important to raise startup funding, which is why engaging with outside contractors for sales is not necessarily recommended. Finally, the choice of the VC firm matters, especially for early stage startups — beyond initial vc funding rounds, it is crucial for the goals and characteristics of the venture capitalist to match the project. Hence, top VC firms should be researched and referenced, making sure they’re the right fit before you pitch for new companies to start building solid relationships with their investors.
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Minh Q. Tran, minh@mandalorepartners.com