A. Reshma Sohoni writes:

It’s crucial to be certain of the figure you’re looking for first. Venture capitalists aren’t the only form of smart money. Individual investors are starting to invest at higher levels, and if you don’t need a large amount, it’s better to take less and give away a smaller stake. So adjust your costs and revenue projections where necessary and consider alternatives.

If you still think VC money looks the best bet, you and your management team need to show you can lead from the top. You must convince investors that you’re going to give a lot for the money. That includes showing how frugal you are and how you’re going to eek out the biggest upside you can. Your business plan needs to reflect this as VCs pressure companies to slow their ‘burn rate’ (how quickly you plan to spend their cash).

You could also consider strengthening your management team. You need to be able to show that you can do things better, faster and more cheaply than other people. You’ll be expected to answer a lot of questions on what you’ve achieved to date, how you’ve beaten milestones and what your plans are going forward. Being able to point to people in senior positions with a track record for consistent execution will strengthen your hand.

Show that you appreciate how equity investment differs from a bank loan – you’re building a relationship for the next five to seven years and you need to show that you’ve understood that. Most importantly of all, make the ‘market’ for investment in your business as competitive as you can by getting interest from different groups and parties.

Reshma Sohoni is CEO of start-up investor Seedcamp. She previously held roles in the venture team at 3i and US venture capital firm Softbank. www.seedcamp.com