Meet the Drapers is a kind of crowdfunding solution based on venture capital aimed at startups. It is a live show where Tim and Julie Draper of Silicon Valley assist struggling business enthusiasts to present their ideas to an audited audience and a jury of venture financiers. Here are some key things to know about how Meet the Drapers works and why its format is beneficial for startups:
The Format
Businessmen and women approach the show to look for funding and the most appropriate cases are chosen out of many to present. Usually there are 3-4 startups presenting their business idea every episode.
Both the pitches are done on stage with a live audience in attendance. It does this in a dynamic, lively way very conducive to learning and communication.
Subsequent to each pitch the Drapers and 2-3 invited VCs critique the business plan and demand questions. The opportunity is immeasurably valuable for young entrepreneurial ventures to get a chance to pitch in front of the best VCs.
The audience can then make a choice of the startup they love most of from the episode. This adds a crowdfunding input in the show as the support and enthusiasm of the audience counts.
Blending Crowdfunding and VC
What The Drapers do is in every episode they give$100,000 to one of the startups. It takes things beyond the mere crowdfunding and lets a company have VC money as a result of an effective pitch.
The audience vote winner helps in the selection of the most suitable business to receive a follow-on meeting with the Drapers to possibly shop for more funding. Therefore, audience excitement breeds its own good by being rewarded in a variety of ways.
All startups get value from pitching to the VCs and receiving their feedback during the broadcast and even if they do not win the investment or audience vote.
Benefits for Startups
- Funding Opportunities
The opportunity to present to established VCs and leave the event with $100k in the hand is big news. Such a level of access typically can only be secured after making several connections and having several meetings. If the VCs are interested but yet to invest they get to provide valuable feedback to the startups on how to change their enterprises.
- Feedback from Experts
Hearing it from the horse’s mouth from some of the biggest investors such as the Drapers is material that startups typically have to spend a lot of money to get access to.
It is noteworthy that the specific how-to’s, business models, go-to-market ideas etc., can quickly pace up the growth trajectory of a young company.
- Exposure and Marketing
It creates hype and publicity many startups will not be able to afford in their early stages of business. This can open up media visibility, fresh customer interest and many others.
Knowing this, founders also get a high-quality video of their pitch, which they can reveal more and market aggressively across their touchpoints after featuring on the show.
- Credibility
Two types of information are most sought by investors as cues to evaluate the prospects of startups. This is a big boost to any start up to get supported by experienced VCs such as the Drapers.
Such legitimacy can be useful in demanding a better share of investment in the future, hiring talent, and signing partnerships.
- Motivation and Confidence
Sifting through a competitive application process just to get the chance to appear on the show, eliminates early lukewarm individuals. Establishing capacity means preparing for the pitch.
Receiving funding and positive response is encouraging from an emotional perspective; it charge one up to continue working on ideas.
- Expanded Network
Not only do founders use social media to communicate with the show’s investors but often with each other as well. It also directly attracts inbound interest to startups as they show up in public platforms.
These networking effects enable the creation of very strong business social capital between fellow founders, as well as with potential partners.
As a cross between crowdfunding and VC, Meet the Drapers directly and constructively funds founders, gives them feedback, exposure, and connections are gained as well as mitigating the high dilution often associated with early funding by pitching to millions of viewers. Due to the show’s format, it benefits both the investors and founders, keen to quickly bring added value ideas into the market.
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