4812463Raising funding isn’t easy and approaching a VC may often seem like a daunting task. For many entrepreneurs, the big question usually comes down to: How do I grab a VCs attention?

Having seen more than 2300 digital health startups in Europe, I thought it’d be helpful to share a couple of tips from my experiences that could help fledgling entrepreneurs in the Digital Health sector:

1) Get a personal introduction to a VC

You’ve probably heard this one before, but it’s definitely worth reiterating. The first step to capturing the attention of a VC is to stand out from the flood of emails and pitches they receive on a regular basis. The worst thing an entrepreneur can do is send a pitch deck to the info@ABCinvestment.com email.

Considering how clear our firm makes it that we invest in Digital Health companies on our website, you wouldn’t imagine the number of irrelevant pitches we receive through that email account (everything from cruise ship startups to carwash-related products). The point is, you don’t want your pitch to be mixed in with this inbox of randomness. Instead, always try to get an introduction through a trusted source when approaching investors for the first time via email.

2) Explain the problem you’re addressing with a compelling story

When pitching in person or with a pitch deck, one of the most important things to do is to tell a relatable, inspiring and concrete story related to the health problem your startup is tackling. In addition to that, don’t forget to include crucial information about how your product solves the problem, the market size and market potential. VCs love big markets and will look very closely to your addressable market size estimation. One more thing: Ensure the sources you used to for market size, medical information, etc. are included.

3) Demonstrate deep knowledge of the market

Believe it or not, VCs don’t know everything about every market. One way to land a meeting with an investor is if you can quickly establish yourself as someone who has thorough knowledge and understanding of the market you’re operating in as well as how your company/product fits into its trajectory. Venture capitalists are students of the market (or should be, at least), so if you can demonstrate that you have a good sense of the market and how it might develop in the next 5 to 7 years, you’ll get bonus points.

4) Focus on retention rates

Many digital health startups focus on their revenue when it comes to showcasing financial metrics, but what’s more important, I’d argue, is retention rate. Why? Because this number shows us whether people are using an app over and over again. It also shows us whether a product is capturing value. Not only that, if your product has an active customer base, it can be a solid foundation for making B2B partnerships with pharmaceutical companies or device manufacturers.