How can i convince a Venture Capitalist to provide funding my newly commenced Startup? Need Suggestions!

Hey Vismay,

Firstly, your mileage will almost definitely vary depending on factors like the type of VC, method of approach, the startup itself and even the country or platform in question.

However, I have worked with a few startups that managed to attract VCs and I'll share my experience:

# How may we convince him?
Different VCs look for different factors but one factor that most investors look for is the ROI which needs to be as high and as stable as possible to convince a VC. My primary involvement has been carrying out valuations and to put it very simply, we first thoroughly analyze the startup on the basis of qualitative and quantitative factors, create financial statements, use methodologies to "rank" the startup's quality and then use those to arrive at key metrics such as ROI and ROE. There are a number of tools to help you in the financial portion such as Pital & Co. by @schnetzlerjoe.

Some VCs instead have a focus on "cutting-edge" e.g. a few years back I was briefly involved in a project that utilized Blockchain when it was all the rage to bridge certain financial instruments and one VC just heard "blockchain" and agreed to meet the team for coffee.

# How should we present our product?
It's difficult for me to answer this without having an understanding of your product but if it's a physical product, it would help to have a prototype at hand. Apart from the prototype, it helps to have a very well-designed image for which it's essential to have a professional-looking pitch/presentation. Keep it short and to the point - while factors like ROI and ROE are important, don't make it all about those numbers - a VC wants to know WHY they should choose YOU and not just YOUR IDEA. There are plenty of resources out there to help you in your pitch, as well.

How can you generate his interest by doing something extra?
Unfortunately, there is no easy answer to this, either. In my personal experience, the startups I've interacted with often have a strong product but they miss out on the "back-office" especially where finances are concerned - many overestimate their costs simple because they don't know the basics of accounting and facts like how to properly cost their product so maybe having a strong handle on all the facets of your startup will set you apart.

One factor which does make a difference, though, is showing you have done your research. In my first startup I pitched to a local Incubator chaired by prominent local industrialists and they had a scoring matrix for each startup; the largest issue with my startup was that it did not have a very educated team (educated because it was a very FinTech startup and none of us had significant experience at the time) but we still got a good score because we had thoroughly done our research - we knew the size of our customer base, we had testimonials, we did user stories - the whole 9 yards. So do your research!

But here's the thing Vismay: this is a slightly opinionated answer to your queries.
What I would really suggest is that you spend some time looking at established resources like Y-Combinator's Startup School or any of the other helpful resources posted by people in these forums - there are endless nuggets of wisdom and they're not even hidden - that's what's great about this website!

Nonetheless, feel free to reach out if you need any more help!

All the best with your startup.