Attract a VC to Your Business
By: Catalina Zuo
Being an entrepreneur is not easy. Prior to even starting a business, entrepreneurs not only have to find feasible solutions to problems, but they also have to successfully sell their ideas to investors. Unfortunately, due to the high risks involved with startup companies, banks often are not an option, so entrepreneurs go to venture capitalists instead. On October 10, 2021, YES invited VC Yang Chen from Joyme Capital to speak about venture capitals.
What is a VC? A VC, or venture capitalist, is a funding investor that provides money to the high-growth potential startups in exchange for equity in the company. Instead of giving loans, they offer money for partial ownership of the company and its profits. However, less than 1% of startups actually receive investments as their ideas are not proven to be profitable. Of course, Mr. Chen emphasizes that all businesses and VCs mean opportunities and risks, so entrepreneurs must be prepared to be successful.
There are multiple aspects to be considered before approaching VCs. Some businesses are not suitable for VC investments, including family and slow-growing businesses. There are also multiple types of VCs that fit different types of startups. Some VCs are strategic, while others are purely financial. By approaching a VC, you are indicating that you are well-prepared and committed to the growth of your business.
Our second speaker was Michael Simmons, a member of the Frisco Education Foundation Board of Trustees. Mr. Simmons mainly focused on the importance of business etiquette and building connections. “Who you know is more important than what you know”, as building those connections are needed to find the important people in anything that you do. Especially for people going into business, networking events are a must! However, starting conversations are not the easiest, so Mr. Simmons gives insight on the secrets to conversations: always wear a nametag, have a firm handshake, and ask questions. Mr. Simmons concludes his presentation with a Q&A session.
As YES members continue to learn about the aspects of business and leadership, they are also learning to apply those skills in real-life situations. This meeting, YES members and officers were split into small groups to complete an activity centered around drones. As drones are becoming more prevalent, the uses for drones are also expanding. For this activity, each group’s goal was to think of a novel use for drones and to sell the idea out to a panel of student representatives from the drone company. Not only did students have to be creative, but they also needed to speak well to provide insight regarding the value of these ideas to the company. As members continue to participate in YES, we hope to help them towards their path of becoming future leaders! Say YES!