For the past two decades, startups have been a major driving force of innovation. Companies such as AirBnB, Seamless, and Uber have dramatically reshaped our economy as they made life unprecedentedly more convenient. Unfortunately, innovation often comes with a hefty price tag. Larry Scheinfeld explains more in the following presentation.

1. The Politics of Silicon Valley
By Larry Scheinfeld

2. For the past two
decades, startups
have been a major
driving force of
innovation.

3. Companies such as
AirBnB, Seamless,
and Uber have
dramatically reshaped
our economy as they
made life
unprecedentedly
more convenient.

4. Unfortunately,
innovation often
comes with a hefty
price tag, which is
why many of today’s
most exciting startups
have turned to venture
capital to fund their
businesses. Image source: www.thedailybeast.com

5. But where large
sums of money are
involved, politics
inevitably follow.
Here is a quick guide
to what you need to
know to push past
them and seal the
deal: Image source: www.cbinsights.com

6. It’s all about numbers.
Less than one out of every 10 startups is able to receive venture capital.

7. This is because
venture capitalists
are not about small
loans.
They seek to invest
multi-millions of dollars
in exchange for returns
that are even bigger.

8. The markets they
invest in also have
to be quite big and
display huge
potential.

9. Therefore,
companies seeking
somewhere between
$10,000 and $100,000
should look for
angel investors, who
like to contribute
smaller sums. Image source: money.cnn.com

10. Companies that need
more than $100,000 but
less than $1 million
should consider
attracting micro-VCs,
investment funds of
between $10 million and
$50 million who are
more likely to make
smaller contributions.

11. Get the right advice and
assemble the best team.

12. The best politicians are
surrounded by dozens
of advisors who refine
everything from the
clothes they wear to the
words they say.
The same is true of
companies.

13. Prior to reaching out for venture funding,
attend a conference in which you can
pitch your ideas to a panel that will
critique them to give you valuable
feedback about the things you’re doing
well and the things you should improve
to make your organization more
attractive for venture funders.

14. Build your company with a trusted team.

15. Seasoned leaders will help
venture capitalists feel
confident in the ability
and stability of your
company.
Venture capitalists
also look for leaders
who display tenacity,
drive, flexibility, and
knowledge.

16. You need the right setup.

17. Politics is a lot
like dating.
For example, the qualities
of being polite, presenting
a compelling persona, and
just generally putting the
best foot forward may help
you secure a second-look
(or second date) from a
major venture capital fund.

18. However, getting
the first date—the
venture capital
firm’s first look at
your company—
often takes the right
setup or
recommendation.

19. Also, remember that
venture capitalists take a
lot of time to consider their
investments even after a
successful introduction, so
be prepared to “wine and
dine” as necessary by
providing required
information and finding
the best way to sell your
vision.

20. Remember that dating is meant to be fun!

21. A lot of companies
make the mistake of
presenting their
organizations as too
serious.

22. Of course,
professionalism and a
solid business plan are
important to securing a
venture capital
investment, but venture
capitalists also want to
work with companies
that run on passion.

23. You are not just asking
for money to grow a
business, but for an
investment in your
vision for the future.

24. If you liked this piece, visit:
LarryScheinfeld.net
Larry Scheinfeld is a co-
founder and partner of Zelkova
Ventures. Before working at
Zelkova, Larry was employed
at Quellos Group as a principal
and financial advisor,
specializing in private equity,
hedge and real asset funds, as
well ashybrid offerings. Follow
Larry on Twitter, Facebook &
LinkedIn to learn more!