Scientists asks a VC: When should we approach VCs?
Welcome to a new part of a Venture Capital Primer for Scientists series based on hundreds of workshops I have given during my work as a deep tech VC at Main Sequence.
It worries me that VCs feel unapproachable to founders.
Assuming there is a fit to the focus of their fund, most VCs will welcome a chat about your invention.
Here’s some principles for deep-tech inventors to find the right moment and posture.
Don’t over-think and delay first approach
Deep tech is hard.
If you wait until you have all the elements, or you wait until you have lodged an invention disclosure with your technology transfer office to ‘build the pitch’ it is probably too late.
Early is good. Deep tech investing is a team sport.
The moment you think your invention’s path to impact could be through a venture fuelled company, that’s the moment to reach out.
Ask for help
Now you are in a conversation with a VC, they can help you carve a path.
Ask them what ‘Great’ looks like for an idea like yours.
Ask them “What’s this like?” so that you can observe how others succeed (and fail).
Ask them for introductions to talent, thought-leaders, customers, other inventors who began in a university to inspire you.
Explore business model ideas that might inform the path.
There might be a number of conversations over a number of months. This also serves to build a relationship.
What does READY look like?
Different funds will have different kinds of ready. But you will know this because you will be building relationships early.
In our case at Main Sequence, here’s what ready looks like:
There is a registered company that we can invest into.
The registered company owns the IP, or has a path to do so.
The invention has been validated with customers and has enough research done to start developing products through customer collaboration.
We do not expect inventions that need regulation to start this process before incorporation and investment.
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I hope this helps. If in doubt, setup a meeting and ask!
Every day, I write about what I am learning in deep tech venture building. I hope you will follow me if this is valuable to you ⇢ @philmorle
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