Pitching a VC is no piece of cake. A typical venture capitalist will have 500 facet-face meetings in a year and only 10% of total startups make the first meeting fruitful. It makes startup founders disappointed when they fail in raising funds for their idea.
No doubt, success, and failure are part of life. But that does not mean you will fail often as you do.
Over the years, there is a great increment in the number of startups and the startup ecosystem of India has progressed rapidly. With progress in different segments, the way to pitch a VC has also changed.
Unfortunately, many funders are not aware of this, and that is why they are losing their funders.
In this article, we will present to you some effective ways to pitch a VC. Go through the entire article to prepare your next pitch.
Do your basic research and educate yourself about what information an investor wants. Also, before you ever walk into VC's office, research the person you are going to be meeting and prepare your strategy accordingly.
Always keep in mind that investors are not just investing in your company, they are investing in you. Starting with a casual conversation will engage them person-to-person.
You will get many casual conversation openers, like bringing up a mutual connection, but the main facts are t give the best, most authentic impression of yourself.
Start your pitch with both a warm introduction and a cold introduction prepared, clear, and concise. Introduce your company with a tagline and a short explanation. Then, explain what your company does and its vision.
When we come up with an idea, we must be aware of the challenges and set backs of that very idea. First, understand yourself and your team to tell your VC who you are, how you reach here, and why you select this team to form your company.
One of the most important things is to let them understand the problem you are solving. Make sure that your solution will support people and that it is good for society. After showing investors why they should care about your product, share the features and benefits through a story.
Always remember investors want your story to be about more than a great product, they also wish to know about your team. Explain to them how your team is exceptional and resilient for your company's growth.
Now, you are in the conclusion, make a clean exit. Give a summary of your presentation in a few sentences. As a closer, use a fascinating phrase. At last, have a strong call-to-action. Don't leave the room without understanding the next step.
These are the points to remember when you get the question of how to pitch a VC. Apart from this, stay confident and natural in your entire presentation.
Do never share any negative points like what the key challenges and risks you face as a founder, why your start-up may fail, grow slowly, etc. It does not only make them doubtful about your idea but you can also lose their confidence in you.