Venture Capital Consultancy pro tips: How to pitch a VC
What makes one pitch a winner, and another one tank?
A combo of metrics, a proven MVP with an engaging or compelling personality of the team can all contribute to make a strong impression among investors.
However, winning the pitch doesn’t always translate to profitable. In fact, it rarely does.
So it you want to get at least the pitch right you need to do your homework and present the right info in the right way.
In this venture capital consultancy Pro Tips article, we will take you through how to pitch a VC in five steps to help you apply method which will help you prepare your next pitch.
How to Pitch a VC: The 5 Step Process
1. Gather Your Metrics
Proof of Concept:
VCs want to invest in scalable if not sellable businesses, and that means illustrating how you have seen consistent product demand and that’s when Product Market fit comes in
The Product Market Fit:
How does your product fit into the overall market, if there already established players or hot competition and is there room for growth?
Investors want to see that your data indicates you’re building something special that others are willing and able to pay for or at least will take then some time to equal.
Tr to calculate the following metric and build into your pitch
This is a hot one as some of the biggest startups in the world are not profitable. But you’ve got to show you have got a plan to get there.
Processes for Scaling:
You might only be based in London or just Salford today, but what about 2 to 3 years from now and what type of cash will you need to expand?
Customer Acquisition Strategy:
Customer acquisition is massive as get this right and you can scale fast. Just look at Tik Tok! (or not depending which year this is…) What is your average cost per customer? How do you acquire valuable new customers?
Online and social marketing should be a core part of your plan.
While valuing mature companies can in theory be fairly straightforward, valuing a startup is not and there’s different approaches so try to pick the right one for you and/or that the VC you are approaching is known to use.
2. Prepare Your Pitch
Investors are people too and are very much like you and me. They are not gods. You want to make a good impression but try to avoid putting them up high. Repeat, they are not gods and need you almost a much as you need them so be authentic. It’s easier in the long run.
Put together a tidy little short introduction that gets you warmed up
Stick to the basics here i.e.
Your name and title.
Your company name.
A tagline / your vision in a nutshell
An explanation of who you serve, what you provide and why a bit like King Arthur at the end of Excalibur. But less dramatic, please…
The most powerful way to explain your company’s value is within the context of a narrative and as they say sell the sizzle not the the sausage and remember a feature is a feature, it’s not a benefit. And it’s benefits you are selljng,,,
Then do the profits forecast bit…
The product may be great but you need a greater team to show that you can deliver so do highlight skills and experience and passion. Don’t forget passion
Finally, summarise and try to close with your tagline and prepare for questions. In fact, try to have practised some Q&As prior so you can bat back like a pro.