What VCs Don't Want to Tell You – Jenny Dreier, EQT Ventures

About this episode

Jenny Dreier is an investor at EQT Ventures, one of the billion-dollar funds at the forefront of early-stage startup financing. In this conversation, she grants rare insights behind the scenes of VC work and explains what founders really need to know to successfully convince VCs.

Preparation is Everything: Researching Potential Investors

A critical point many founders underestimate is researching potential investors. It's not enough to simply reach out "anywhere." Jenny emphasizes how important it is to research funds and VCs beforehand. Those who blindly send pitches waste not only their own time but also that of investors.

Proper preparation means understanding: Which industries does the VC invest in? At what stage? What ticket sizes are typical? These basics should be clarified before any initial contact.

Why So Many Founders Are "Misunderstood" by VCs

Many founders feel misunderstood by VCs – despite seemingly good visions, they don't get approval for financing. But often the problem isn't the vision itself, but how it's communicated.

VCs must evaluate dozens of pitches daily and need clear, understandable messages. When the story is too complex or important points are missing, even the best idea gets lost. The art lies in explaining complex business models so they can be understood in just a few minutes.

Elements of a Convincing VC Story

For startups in the seed round, good storytelling is crucial. A convincing story should contain several core elements:

• –The Problem: What real problem are you solving?
• –The Solution: How do you solve it better than others?
• –The Market: How big is the opportunity?
• –The Team: Why are you the right people?
• –Traction: What have you already achieved?

It's not about perfect slides, but about clear, logical argumentation that shows why this particular startup has the potential for extraordinary growth.

Understanding the Competition for VC Financing

Founders don't just compete with direct competitors for financing, but with all other deals a VC is currently evaluating. Jenny explains that VCs weigh every investment: Is this the best use of our capital and time? Understanding this perspective helps position your own pitch accordingly.

The Perfect Intro to an Investor

A warm intro is worth its weight in gold – but not all intros are equal. Jenny discusses an interesting question: What's better – a very good intro from a low-ranking person or a weak intro from a high-ranking person?

The answer is nuanced: An authentic, well-reasoned intro from someone who really knows the startup can be more valuable than a superficial intro from a famous name. What's important is that the person making the intro can credibly assess the startup and its strengths.

Automation vs. Personal Approach

A practical point that concerns many founders: How useful is it to automate outreach? Jenny provides clear guidance on when automated processes can help and where the personal touch remains indispensable.

A systematic overview of intros and conversations is definitely useful – but the actual outreach should always be individual and targeted.

Network vs. Data: How VC Work is Changing

A fascinating aspect is how VC work is evolving between network-based and data-driven approaches. Traditionally, VC investing was heavily network-driven, but increasingly more data flows into investment decisions.

This development also impacts how founders should design their approach: While networks and recommendations remain important, hard facts and metrics are becoming increasingly decisive.

Transparency with Data and Deals

Finally, Jenny also addresses a sensitive topic: What happens to founders' and deals' data? This transparency is important for trust between startups and VCs and shows how professionally the industry handles confidential information.

The insights from this conversation show: Successful VC financing isn't a game of chance, but the result of strategic preparation, clear communication, and understanding how the other side of the table works.