How to Raise Money from Venture Capitalists and Other Investors

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In a recent article in Harvard Magazine, Amy Cuddy, who teaches at Harvard Business School is quoted as saying that the success of venture-capital pitches to investors apparently turns, in fact, on nonverbal factors like “how comfortable and charismatic you are.  The predictors of who actually gets the money are all about how you present yourself, and nothing to do with content.”

Citing research by Boston College doctoral student Lakshmi Balachandra, who studied 185 venture-capital pitches and found that variables like “calmness,” passion,” “eye contact,” and “lack of awkwardness” were strong predictors of success, Cuddy argues that nonverbal states, like confidence, are infectious in part because, “people tend to mirror each other.  There are dedicated ‘mirror neurons’ in the brain.”

While these findings are certainly interesting (and intuitive), I believe it is an oversimplification that content doesn’t matter at all.  After all, businesses seeking money from a venture capitalist would not even get an appointment unless they had a good idea and a strong, fleshed-out business plan.

It would be more accurate to say that, given relative parity between investment opportunities, VCs tend to invest with those individuals who display the mentioned personal traits.

Presenting for Results^SM Update:

We have scheduled our 2nd public seminar called Presenting for Results^SM. If you are so inclined, please join us on Nov 18 & 19, 2010, at the Upper Montclair Country Club in Clifton, NJ, which is on Rte. 3 East, just east of the Garden State Parkway.  The program is fun, eye-opening, highly experiential and beneficial to your confidence and career, and thus good for your company as well.  Or let somebody who could benefit know about the program. There is very limited enrollment to keep it practical and interactive.  Click here to learn more.

Sims Wyeth is an executive speech coach in Montclair, NJ specializing in presentation skills and public speaking training in order to give accomplished people the knowledge and skill they need to become accomplished speakers. Learn more public speaking tips at www.SimsWyeth.com.

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