How to Pitch Venture Capitalists
It’s not easy to ask a professional investor to listen to your pitch for funding – it takes courage, intelligence and most importantly, a solid story. To make your job a little easier, here are some Do’s and Don’ts when making your pitch:
Do ...
- Prepare in advance. Be ready to answer a wide range of questions about your proposal.
- Bring only those people essential to your pitch.
- Focus on the problem you are solving. Describe the pain felt by your target customers and estimate its size.
- Explain your solution and why it is very different from existing products or services.
- Briefly describe your marketing and sales plans.
- Make sure you have the abilities and experience to execute the business plan you are proposing.
- Offer realistic projections about how much money you will need to reach your milestones, and provide revenue and profit projections for the company.
- Listen closely to the feedback you get and tailor your responses accordingly.
- Follow up after the meeting with appropriate information as needed. Be persistent in making sure the information was received.
Don't ...
- Rely too much on PowerPoint to make your case. You can use slides, but they should simply support your message – they shouldn’t be the message itself.
- Overload your listeners with information. The goal of the pitch is to interest them in learning more. They will not be making an investment decision at the initial meeting.
- Overstate the abilities of your founding team. Venture capitalists understand that most founders will need to build a broader team after they receive funding.
- Make unrealistic statements about your company’s revenue projections or likely valuation. They are credibility killers.
- Fail to take “no” for an answer. You are very unlikely to persuade a venture capitalist to change their mind once they have declined the opportunity to invest. But a “no” today could be a “yes” after you’ve made additional progress.
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