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Building Excitement - What to know when pitching your first VC by Mark Ruddock
This document provides tips for pitching a startup company to venture capitalists (VCs). The key points are: 1) Get referrals from trusted advisors as VCs rely on their network to filter deals. Referrals are more effective than cold calls. 2) Tell a clear, compelling story that generates excitement and leaves the VC wanting more. Focus on the problem being solved, market opportunity, strengths of the team, and financial projections. 3) Understand the VC's investment criteria and show how your startup fits. Demonstrate traction and understand how and why another company would acquire your startup. 4) Listen to questions without getting defensive and be prepared to effectively make your case. The goal
Building Excitement - What to know when pitching your first VC by Mark Ruddock
- 1. BUILDING EXCITEMENT What To Know When Pitching Your First VC @MarkRuddock 1
- 2. If you rememberonly one thing from this presentation ... 2
- 3. This is howyou want a VC to see you
- 4. This is NOThow you want a VC to see you 4
- 5. Venture Capitalists arePeople Too 5
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- 7. VC’S WANT TO UNCOVERGEMS 6
- 8. VC’S WANT TO UNCOVERGEMS They want to be excited, but they are by their nature also very sceptical. 6
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- 10. THERE IS POWER INRELATIONSHIPS 7
- 11. THERE IS POWER INRELATIONSHIPS The value of your company is not always intuitively self evident to a VC. Get to know your prospective VCs early ... get on their radar. 7
- 12.
- 13. A REFERRAL IS WORTH1,000 COLD CALLS 8
- 14. A REFERRAL IS WORTH 1,000 COLD CALLS VCs typically see far more pitches than they can absorb. They depend on a network of trusted advisors to filter deals for them. 8
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- 16. IT’S ALL ABOUTA COMPELLING STORY 9
- 17. IT’S ALL ABOUTA COMPELLING STORY You want to make a clear, credible and compelling case, generating excitement and desire ... leaving them wanting more. 9
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- 20. DO YOUR HOMEWORK What spaces, companies do they invest in. Do they have a particular bias (stage, sector). Is their interest genuine or just a fishing expedition? 10
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- 22. KEEP IT SIMPLE STUPID 11
- 23. KEEP IT SIMPLE STUPID The initial pitch is about drawing them in. Cover the key elements but don’t drown them with details. 11
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- 25. KNOW YOUR STUFF 12
- 26. KNOW YOUR STUFF Even though the story will be short and sweet, you want to leave them with the impression that you really know your stuff. 12
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- 28. LISTEN AND DON’TBE DEFENSIVE 13
- 29. LISTEN AND DON’T BE DEFENSIVE Be professional, listen carefully to questions, don’t get defensive but be prepared to effectively make your case when necessary. They are testing you ... 13
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- 32. SHOW TRACTION It’s always better to be able to demonstrate that what you are saying is grounded in reality. Traction is very compelling. 14
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- 34. UNDERSTAND THE LIKELY EXIT SCENARIO 15
- 35. UNDERSTAND THE LIKELY EXIT SCENARIO VCs are not likely to invest unless they can think of a number of credible reasons why a set of existing companies would want to buy yours. 15
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- 38. VCS BACK PEOPLE Ideas without execution are only a dream. And dreams don’t provide real returns. Great companies are built by exceptional people. Prove you are one. 16
- 39. The anatomy ofa pitch... 17
- 40. Anatomy of aPitch
- 41. Who are youand what problem are you are solving Anatomy of a Pitch
- 42. Who are youand How compelling is what problem are the opportunity you are solving (risk/reward) Anatomy of a Pitch
- 43. Who are youand How compelling is what problem are the opportunity you are solving (risk/reward) Anatomy of a Pitch Whats so special about your team and your approach
- 44. Who are youand How compelling is what problem are the opportunity you are solving (risk/reward) Anatomy of a Pitch How much do you Whats so special need and why about your team and your approach
- 45. What you needto know
- 46. What makes you unique What you need to know
- 47. Who are your customers and what’s their buying What makes you rationale unique What you need to know
- 48. Who are your customers and what’s their buying What are your key What makes you rationale financial projections, unique metrics, etc. What you need to know
- 49. Who are your customers and what’s their buying What are your key What makes you rationale financial projections, unique metrics, etc. Who are your competitors and why What you need to know
- 50. Who are your customers and what’s their buying What are your key What makes you rationale financial projections, unique metrics, etc. Who are your competitors and why What you need to know Are there comparable metrics (exits and operating)
- 51. Who are your customers and what’s their buying What are your key What makes you rationale financial projections, unique metrics, etc. Who are your competitors and why What you need to know Are there comparable Do you understand metrics (exits and your strengths and operating) weaknesses
- 52. Who are your customers and what’s their buying What are your key What makes you rationale financial projections, unique metrics, etc. Who are your competitors and why What you need to know Are there What’s your core go comparable to market strategy Do you understand metrics (exits and your strengths and operating) weaknesses
- 53. Who are your customers and what’s their buying What are your key What makes you rationale financial projections, unique metrics, etc. Why do we want to Who are your work with you in competitors and particular why What you need to know Are there What’s your core go comparable to market strategy Do you understand metrics (exits and your strengths and operating) weaknesses
- 54.
- 55. DON’T FORGET TO CLARIFYNEXT STEPS 20
- 56. DON’T FORGET TO CLARIFYNEXT STEPS Try to ascertain their interest at the end of the pitch and identify next steps. Don’t leave without them. 20
- 57. If you rememberonly one thing from this presentation ... 21
- 59.
- 60. EXCITEMENT Build it. Growit. Don’t ever lose it.
- 61. DESIRE Build it. Growit. Don’t ever lose it.
- 62. Thanks and enjoythe ride! www.MarkRuddock.com @MarkRuddock 23
Editor's Notes
- #2 Thank BlackBerry ... Set-up the Weekend ... “Fundamentally Irrational Exercise” ... “whether you are a CEO recruiting a team or winning over funding ... it’s about convincing other people to come along for the ride” It’s a “non-trivial problem”
- #19 These guys are usually very good at what they do ... it’s all they do ... cannibals to dinner.
- #20 These guys are usually very good at what they do ... it’s all they do ... cannibals to dinner.
- #23 Traction is the foundation of the promise of tomorrow ...
- #24 Traction is the foundation of the promise of tomorrow ...