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Pitching a VC
This white paper will lay the foundation for entrepreneurs and small and medium companies with to directly access sources of early and later stage - local, national, global, and regional - capital ranging from angel, venture, corporate, bank, and structured business acceleration programs. In this white paper, you’ll learn steps 1 – 6 of how to strategically comjmunicate to this specialized audience including how to address risk in such a way to increase the probability of getting funded, how not to get burned by getting a handle on your burn rate, and how to add power to your power point presentation, and how to manage the slippery slope of statistics. Before you try to rasie money with any institutional investor, be sure your prepared! Read this!! How to Pitch A Home Run to VC Meeting with venture capitalists for your initial round of offering is a little like going to bat for the first time in major-league baseball. You have an opportunity to hit the ball out of the park, but if you blow it, you may find yourself languishing in the minor leagues of entrepreneurship. This white paper is designed to increase your batting average. Over the years, our team has observed thousands of companies in their efforts to access institutional capital via Venture Capital1. Some have succeeded. Many more have failed. In fact, for every business owner who tries to get funds, there are at least 100 who don’t make the cut. Think of the pitch as a sales call with the toughest of audiences. Venture capitalists weed through perhaps 100 business plans a week, sit through maybe 100 presentations a year, and eventually invest in 5 -10 companies. Their goal in meetings is to eliminate the 90% that aren’t for them. What distinguishes the winners isn’t always the fact that their companies are more promising. Their secret is that they know how to sell themselves. The old adage about presentations is that they’re never finished; entrepreneurs simply run out of time. Nothing could be truer. The amount of time spent dithering over slide presentations is almost incalculable and rarely productive. The reality of raising money is that the slides don’t sell the deal. The persuasive and compelling manner in which the presentation is made sells the deal. To make this digestible and understandable, we will use a Vogue-esque technique to keep you from making a VC Fashion foible: Presentation Do’s and Don’ts only we won’t show before and after photos. Do … Know thyself and to thy own self be true. (to borrow from Shakespeare) Knowing areas of your company that need improvement and what you’re team is capable of doing, generates credibility. We’re human. We are limited. Confessing this conveys that you’re someone a VC funder can work with, that you’re willing to take direction. As Location, Location, Location is the mantra in Real Estate, a company’s people are the first, second, and third most important thing. Prior experience in starting and growing companies, in particular, is highly valued. So is familiarity with the market. Making mistakes is inevitable, but having made them in the past and at someone else’s expense is preferable. You need to demonstrate that you’ve surrounded yourself with people who are smarter, stronger, and more skillful than you are. Under-hiring – where the new people recruited are less qualified than those who hire them – is a great danger and can be a deal killer. And, your team needs to demonstrate that they are truly hungry. If you’ve got your day job and you’re doing this on the side, generally VCs don’t want to talk with you. Don’t …Shoot for Papa Bear or Mama Bear status; aim to be the Baby Bear. Remember the fairy tale? Papa Bear’s stuff was always too big, too hard, too hot. Mama Bear’s was too small, too soft, too cold. Baby Bear’s was always just right. Same principle. Don’t say too much or too little. Unfortunately, either extreme can kill a deal. If you bore your investors to tears, your presentation is far too long and indicates to the savvy investor that you are unsophisticated when it comes to the rules of engagement. It also tells your audience you have doubts as to what information is critical and what is simply fluff. On the other hand, you’ll give investors the impression that you’re unwilling to share important information if your presentation doesn’t go on long enough, far enough or deep enough. Ideally, the standard pitch to professional investors is... [continued...] Want to know more? Download the White Paper "Pitching a VC" for just $39.95. |
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