The document outlines mistakes that entrepreneurs should avoid when pitching to venture capitalists (VCs). Key issues include unclear business models, lack of scalability, inadequate sales and marketing strategies, poor financial projections, and an inexperienced team. Addressing these concerns is crucial for securing VC funding and ensuring business success.

1. Mistakes entrepreneurs
should avoid
What VC’s will not like about your project
Barcelona, May 2012
IGNOVA
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2. What VC’s will not like about your project
BUSINESS MODEL
Business Sales & Financial Team &
model Marketing projections Capabilities
1. The business you are proposing is not scalable
2. The revenues of your business model are unclear
3. There are too many revenue streams defined in your business plan
4. Growth strategies are not defined
5. There is no road map to develop new revenue streams in the future
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3. What VC’s will not like about your project
SALES & MARKETING
Business Sales & Financial Team &
model Marketing projections Capabilities
1. You will create a new market
2. You have no competitors
3. You do not know who your competitors are
4. You’re trying to create a new need to your potential customers
5. You’re not sure who your main clients will be
6. You don’t know how you will get to your clients
7. You have not stated how you are solving an actual problem to your clients and
why your solution will save their lives
8. You have no idea on what your market is (how big it is, whether it is increasing
in volume or decreasing, etc.)
9. There is no solid evidence of how you will sell and at what price
10. There is no detailed explanation of how you will communicate your product
11. There is no information on the cost to acquire new clients
12. You are not capable to explain your competitive advantage
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4. What VC’s will not like about your project
FINANCIAL PROJECTIONS
Business Sales & Financial Team &
model Marketing projections Capabilities
1. You do not know your cash burn rate
2. There are no milestones defined
3. Projections are not progressive
4. You are not explaining or perfectly detailing every element of your financial
projections (client acquisition cost, number of clients, etc.)
5. You forgot to include obvious costs (wages, licenses, etc.)
6. Your hypothesis are wrong
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5. What VC’s will not like about your project
TEAM & CAPABILITIES
Business Sales & Financial Team &
model Marketing projections Capabilities
1. There is no balance in your team’s capabilities
2. No one in your team has a deep experience in the industry you want to create
your new business
3. The team is not a 100% involved in the project
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