Pitch Perfect: Raising Capital for Your Startup

© Haje Jan Kamps 2020

H. J. KampsPitch Perfecthttps://doi.org/10.1007/978-1-4842-6065-4_2

2. How Venture Capital Works

To raise money, you need to know what happens in the mind of a venture capitalist

Haje Jan Kamps¹  

(1)

Oakland, CA, USA

 

In the previous chapter, I talked about why it is so important to keep your audience in mind when you are telling a story. In my work with founders, I’m sometimes surprised that even pretty experienced founders occasionally don’t understand how venture capital works. By extension, it’s hard to make the most compelling pitch; without understanding venture capital, it is tricky to know what the driving forces behind your investors’ decisions are.

Who invests in venture capital?

At the most basic level of abstraction, ...