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August 15, 2011 / Danii Oliver

VC Pitching

  • Whats the most important thing to pitch when pitching a business idea to investors?

YOU

The single most important thing to pitch is YOU. You need to pitch to them that you are the person who is going to be doing the work and that you can get it done.

You have a very little time to pitch, Angels: 15 minutes, VCs: 25 minutes. Attention is lost after about 18 minutes so keep it there then let them ask questions.
Don’t let them ask questions during stay focused if you think a question might be on the horizon answer it right away don’t keep them waiting.

What you need to convey

You’ve got to convey 10 characteristics, the most important Integrity second most Passion! Me personally I’m not going back to the alternative. I did my time learned the basics and I ready to take this thing by reins and drive it home. Next what is your Experience. Show experience creating and organization. Doesn’t matter what kind it is. It also doesn’t matter if it failed because you learned something from that experience as well.

Then there’s Knowledge. You need to have domain knowledge, you can’t have an idea without the basic knowledge of what it takes and some Skill to get it done. With that understood, you can’t do everything yourself thus, you need to show your Leadership ability.

Is your Commitment til death do you part. Have Vision you need to show that your are committed to make a change in society or in your realm. not a me to product. Realism is a reality. There will be bad things happening every now and again so have a plan. Show that you understand it’s not all roses and sunshine. Be Coachable. Be ready to receive advice and direction. Know that you need and can always use help and advice.

The Presentation

Start strong and grab them emotionally. Then continue to take them higher and higher. You can not afford to take your pitch down because you will let them down. You need to leave them high. Follow a nice logical progress. Don’t go back and forth. Talk about where the market is, how your taking it up. Provide validators. Awards, Sales, metrics, testers someone else saying that it makes sense. Give the upside and the downside, again be realistic. Mention competitors.

Break everything down and don’t patronized. Don’t leave them confused or trying to figure things out in their heads because then you’ve lost them. Make sure your presentation is TIGHT. A small mistake means you can’t run a business.

How to Present

Use
•    Short bullet points
•    Titles
•    Images
•    Always bring the focus back to you
⁃    Do not show notes, or long drawn out wordy slides. The explanations should be left to you.

The Flow
•    Start with your LOGO
•    Bring it back to you
•    Give an overview of the business
•    Give context, bring it together, walk them through
•    Present the Team
•    Explain the Market
•    Explain the Product
•    Give a Screenshot, Not a demo
•    Explain why would people buy
•    Explain who will buy
•    Present relationships and validation
•    Competition
⁃    show how you will prevent a competitive take over
•    Tell you 3 -5 year plan
•    Explain drivers and sales
•    Show how the money is going to help you

Now it’s time for the Ask
State how much you need and what is the valuation.
Explain what has been the capital structure thus far. Other VCs, Friends and Family?

Conclude by going back to your Logo and tying it all up.

Body Language

Speak to your audience not your presentation screen. Tools that help this process include:
PowerPoint in Presenter mode
Ovation and Adobe Presenter
These tools let you use presenter notes to see where you are and know where your going in order to pace yourself and keep time. Give hand outs with more info because it must explain your presentation in your absence. Finally look at your audience. never look at the main screen. You must connect with them.

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