Whether you’re an early-stage startup or a late-stage startup, sooner or later you are going to need money. And, when such a need arises you might ponder exactly how many different ways exist to deliver a successful pitch to a Venture Capitalist or VC.
Statistics and expert reports suggest that if a VC sits through 100 startup pitches, each from different funding aspirant, he/she will choose to fund only 10 of them.
So while you are keeping your fingers crossed, here are:
5 essential, life-saving tips to follow to deliver a successful first pitch to a VC:
#1. Don’t prepare a boring pitch:
As much as you might want to impress the investor with your up-to-date data and market research, a VC does not want to be bored with a regular pitch.
So, what should you do instead?
You should tell them the story behind your startup. Connect with your investor, and keep them engaged. If they love you, they will ask counter questions, if they don’t that means you’re boring them out!
#2. Explain your product exactly how you see it:
A neat way to sell your product to a VC is by handing it to them. That means you must have a practical prototype or a complete model setup before you make that appointment with the big guy.
When a VC sees the physical model, they will automatically be more inclined to hear the story that led to its creation, what it can do for the VC and finally, how will it make money for him?
#3. Timing is the key:
The moment you step into that meeting room; you are on their turf.
Remember this beforehand and remind yourself over and over again, TIMING IS THE KEY!
If the VC gives you only 20 minutes for a pitch, divide your time accordingly. That means, not spending too much time on 1 slide. Spend more time on convincing them and wooing them to give you their money instead of trying hard to sell yourself and to be liked.
#4. Talk about your target audience & how will you attract them:
Tell the VC who your target audience is, and use demographics, charts, graphs, to display where your target resides, and what marketing tactics you will employ to reach them and attract them over to your product.
Also, keep in mind that a VC won’t go for a product that lacks integration with social media, so be sure to back up your idea that is a trendsetter and unique.
Integration is the key!
#5. It’s Your D-Day, Suit Up!
You are about to meet the Big Man, this is THE EVENT you’ve been waiting for since you had the idea of a startup. There’s nothing like a well-dressed man or a woman who means business!
You must spend more than you normally do, to make an everlasting impression. Buy an attractive, subtle and classy suit for this day that gives you the boost to pitch to a VC. It’s best to practice your pitch a few times beforehand with your outfit on!