Moonshot startups, those Bold ideas that promise to reshape our world are inherently about venturing into uncharted territory, giving us new superpowers and creating new markets. It’s high stakes, high reward and, more often than not, very technical. As someone who navigates these waters, I see firsthand that when securing funding, it’s just as important to mobilize general VCs as it is to mobilize specific investors for your round.
Yes, having industry specific investors is invaluable. But we should not underestimate the power of the general perspective. They provide something different — a broader, more expansive view. However, getting mainstream VCs to bet on these ambitious ideas is an art.
The task is doubly daunting in a strained economic environment. Just look at biopharma. The industry is projected to have increased the the lowest tally in four years. When wallets tighten, VCs—especially those without a deep understanding of the specific technical domain—often revert to a more conservative approach to investing. This conservatism can inadvertently crowd out the most transformative ideas that promise financial returns and significant social impact.
So how do founders of highly ambitious, deeply technical startups navigate these choppy waters? How do they convince mainstream VCs to invest in ideas that require a leap of faith and, perhaps, a leap of understanding? Drawing from my experiences at reproductive technology company Orchid, I’ve outlined key strategies to help founders navigate this journey.
Tell an epic story about how the world will be a better place if you win
First and foremost, the key lies in effective communication. Translate your complex, technical vision into a narrative that resonates with a broad range of investors. This is not about weakening the technical aspects or frustrating the science. Instead, it involves creating a story that highlights the potential impact and value of the idea. Investors need to see not only the brilliance of the idea but also its practical implications — how it addresses a real problem, the scale of its potential market, and its feasibility.
Translate your complex, technical vision into a narrative that resonates with a broad range of investors.
Every great undertaking has a story – a story of challenges, discoveries and visions of a changed world. Telling this story in a compelling way can capture the imagination of mainstream VCs, who are often looking for the next big idea to disrupt the market. A general guide to follow:
- Why now: Start by approaching the problem your venture solves. Explain why this problem hasn’t been solved to date and what has changed, making now the right time to solve it. Paint a picture of the current landscape and the gap your technology intends to fill. This is especially important for moonshot ideas, which often have higher R&D and CapEx (capital expenditures) costs, but are only now possible because of other recent technological breakthroughs.
- Humanize technology: At the heart of every technical solution lies a human problem. Relate your technology to real-life scenarios and potential impacts on people’s lives. This human connection makes complex ideas more relevant and engaging.
- Show momentum and speed: Share the story of your company’s evolution — the challenges you faced, the breakthroughs you made, and the lessons learned. Show that you can punch above your weight in terms of who you can attract and what you can do. Show that you can do more with less. You want to demonstrate resilience, innovation and the progressive realization of your vision. Generalist VCs hear a lot of pitches from software companies promising breakneck growth. Your Moonshot company needs to build momentum to compare.
