HOW TO PITCH A VC: THE-STEP-BY-STEP PROCESS
Pitching a VC is no piece of cake. A typical venture capitalistwill have 500 facet-face meetings in a year and only 10% of total startups makethe first meeting fruitful. It makes startups founders disappointed when theyfail in raising funds for their idea.
No doubt, success, andfailure 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 ofstartups and the startup ecosystem of India has progressed rapidly. Withprogress in different segments, the way to pitch a VC has also changed.Unfortunately, many funders who are not aware of this, and that is why they arelosing their funders.
In this article, we will present to you some effective ways topitch a VC. Go through the entire article to prepare your next pitch.
Do Your Research
Do your basic research and educate yourself about what informationan investor wants. Also, before you ever walk into VC's office, research theperson you are going to be meeting and prepare your strategy accordingly.
Start withCasual Conversation
Always keep this in mind that investors are not just investing inyour company, they are investing in you. Starting with a casual conversationwill engage them person-to-person. You will get many casual conversationopeners, like bringing up a mutual connection, but the main facts are t givethe best, most authentic impression of yourself.
Start your pitch with both a warm introduction and coldintroduction with prepared, clear and concise. Introduce your company with atagline and short explanation. Then, explain what your company does and itsvision.
Understand Your Idea
When we come up with an idea, we must be aware of the challengesand setbacks about that very idea. First understand yourself and your team thentell your VC who you are, how you reach here and why you select this team toform your company.
Share YourProduct Story
One of the most important things is to let them understand theproblem you are solving. Make them sure that your solution will support peopleand it is good for society. After showing investors why they should care aboutyour product, share the features and benefits through a story.
Talk aboutYour Team
Always remember investors want your story to be about more than agreat product, they also wish to know about your team. Explain to them how yourteam is exceptional and resilient for your company's growth.
Now, you are in the conclusion, make a clean exit. Give a summaryof your presentation in a few sentences. As a closer, use a fascinatingphrase. At last, have a strongcall-to-action. Don't leave the room without understanding the next step.
These are the points to remember when you get the question of howto pitch a VC. Apart from this, stay confident and natural in your entirepresentation. Do never share any negative point like what the key challengesand 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 theirconfidence in you.
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