With the bear market for venture capital a seemingly permanent fixture of the investment landscape, it is critical for the fortunate few biotechnology companies that have secured a meeting with a venture capital firm to present their businesses’ value propositions properly and powerfully to potential investors. Venture capitalists (VCs) are in no mood to waste their time—and money—with entrepreneurs who can’t communicate their value propositions convincingly.
Simply put, the value proposition is: the reason why a venture capitalist should put money in your company. This article focuses on the crucial aspects of presenting that value proposition effectively in order to secure funding. To do so, hopeful bioentrepreneurs need to apply a two-step plan to evaluate their business plans: make sure the plan is realistic, and then challenge your assumptions.