What should my initial VC pitch be?
When you set out to raise capital, one of your biggest challenges is to craft and deliver an effective pitch.
If you’ve got a business model that is suitable for Venture Capital (VC) funding, you will be participating in a very competitive environment for only a relative handful of capital allocations.
Far fewer than 1 in 1,000 VC pitches receive VC investment, so it is very important to make the most of your opportunity.
The first and most important factor is to research the VC firm before you pitch them.
First, research the VC firm itself. Start with the basics. Do they invest in your market? Do they invest at your stage of growth?
Next, ensure that they have an active fund that they are investing. If the fund is closed out or the remaining balance is being held back to sustain their portfolio companies through tough times, then the VC firm is not a candidate.
Last, check their reputation. Are they people who are assets to their portfolio companies? Do they add value beyond the cash? Talk to CEOs in their active portfolio and, especially, seek out CEOs from companies that the VC funded but later abandoned, shut-down or otherwise shared a negative outcome. It is very important to discover how the VC responds to adversity since every startup is a long string of adverse events overcome, one-by-one.
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