How can a banker help a pre revenue AI startup?

Based on the most helpful WSO content, here’s how a banker can contribute to a pre-revenue AI startup and how you can prepare for a sales/business development role:

How a Banker Can Help a Pre-Revenue AI Startup:

1. Fundraising Expertise: Your experience in tech banking equips you with knowledge of capital markets, investor expectations, and fundraising strategies. You can help the startup secure funding by preparing pitch decks, financial models, and identifying potential investors.
2. Strategic Financial Planning: Assist in creating financial projections, understanding cash burn rates, and planning for future funding rounds.
3. Networking: Leverage your network of VCs, angel investors, and industry contacts to open doors for partnerships, funding, or mentorship.
4. Market Positioning: Use your understanding of market trends and competitive analysis to help the startup position itself effectively in the AI space.
5. Deal Structuring: Your knowledge of M&A and deal structuring can be valuable if the startup considers partnerships, acquisitions, or strategic alliances.

Preparing for a Sales/Business Development Role:

1. Understand the Product: Dive deep into the AI product or service your friend’s startup offers. Understand its unique value proposition, target audience, and potential use cases.
2. Learn Sales Techniques: Familiarize yourself with sales strategies, especially in the tech and AI sectors. Books like Founders at Work and Zero to One can provide insights into startup growth and sales.
3. Build a Network: Start connecting with potential clients, partners, and industry players who could benefit from the startup’s product.
4. Develop a Go-to-Market Strategy: Work on a plan to introduce the product to the market, including pricing, distribution channels, and marketing tactics.
5. Leverage Your Banking Skills: Use your analytical and presentation skills to craft compelling pitches and proposals for potential clients or partners.

Taking this risk early in your career can be a great move, especially if money isn’t a concern. Your background in tech banking gives you a strong foundation to add value to the startup while learning new skills in sales and business development.

Sources: Turing down IB FT offer to run my startup?, VC startup idea - PE or VC interest? Are these numbers viable?, Q&A: Investment Banking Analyst to Startup Co-Founder, https://www.wallstreetoasis.com/forum/trading/move-to-tech-in-search-of-better-wlb?customgpt=1, Leave banking to start a PE fund?