Erika van der Merwe, CEO of the South African Venture Capital and Private Equity Association (SAVCA), has some tips for entrepreneurs who are looking for funding from a venture capitalist.

It’s all about people

The venture capitalist will do thorough background research on you, including your business experience, training and successes. The investors will be keen to see that you and your team have the ability to carry out your big plans.

How new is your “new”?

Investors into venture businesses are on the lookout for fresh approaches and solutions that are disruptive, can be scaled up quickly and which can be successful in an international setting. Be on point about your differentiators.

Crunch the numbers

Do your homework and be ready to convince your funding source that there is demand for your product or service and that this demand is sustainable.

Avoid the trap of overoptimism

The venture capitalist has heard all the pitches in town and knows that the valuation you’re placing on your idea is hugely inflated. While his or her job is to help you reach your dream, they’ll walk away quickly if your numbers are patently unrealistic.

Stay humble

Don’t come into your new business expecting a big salary. The venture capitalist wants to see that you are willing to give what it takes to make this enterprise succeed over the long haul. The time to live the high life is when you’ve proven yourself.