“Your mission, should you choose to accept it…”
Although your mission for your startup business doesn’t have to be impossible, it should inspire venture capitalists to learn more.
Understanding the Mission Statement
A mission statement is often overdone and misunderstood. Some businesses tend to focus on rhetoric and bullet-point statements that try to state every value and objective of the company. Unfortunately, a poorly written mission statement does very little to help a company and does even less in helping obtain VC financing. A business without a mission statement, or a poorly written one, will have a more difficult time convincing VC firms that they are on a mission to make money.
Rather, you should have a mission statement, but one that is succinct and states your company’s main objective or goal. Your mission statement should be no longer than one or two sentences, which is no easy task.
The Value of the Mission Statement to Venture Capitalists
Why do VC firms consider well-written mission statements important? First and foremost, the mission statement succinctly summarizes the ideas contained within the business plan. Reading these few sentences can prompt the venture capitalists to read more or simply move onto the next company.
In addition, developing a powerful mission statement can be very beneficial to the entrepreneur and the management team. In obtaining VC funding, having a clear goal is of the ultimate importance, and a mission statement can help you refine your ambitions into a profitable, achievable endeavor.
Make sure your mission statement is incredibly clear. A business who wants to “penetrate the medical technology industry” does not adequately describe how it will serve the industry or its customers. A broad mission statement will not only bore venture capitalists, but will close the doors to your funding potential.
Make it easy for VC firms to know what your business hopes to accomplish. Write and re-write a constructive mission statement that highlights the main point of your business.
Use your mission statement as a hook for gaining the attention of VC firms.