February 28, 2011
Do you want to start your own company and you need venture capital funding in order to succeed? Well, there are a few steps you absolutely need to follow in order to get the attention of venture capitalists, which are generally overwhelmed by demands. If you are a entrepreneur looking to start-up a company, you should include the following elements in your pitch:
- Your first slide should contain a photo or another type of image that should capture the attention of the venture capitalists;
- After presenting your company in a line, not more, you should focus upon presenting your product. Be aware that venture capitalists are very interested in figures, so your pitch should include very precise data about your potential market. You should firstly analyze the demographics of your target audience and afterwards present which is the trend of the market. If the market is already evolved and your company has no other background than of copying an already existing type of business, than you should give it up. The most important element is to show why your business idea is better than the ones on the market or, at least, how is it different. You should state why thereâ€™s an absolute need for your product on the market and who will beneficiate from it;
- Than you should offer your solution by stating which are the qualities that make your product absolutely necessary for customers. You should also think about whether or not your product addresses to a special niche and how will you manage to make your customers happy with their purchase;
- In order to convince venture capitalists of the need for your product, you have to let them see that you prospected the market like no one else. You should provide the sources of you analysis, you should always give relevant examples and you should know the information you are referring to so well that for the venture capitalists to find it impossible to ask you a question you donâ€™t know the answer to. Keep in mind the fact that they will try to confuse, to interrupt you, to give you a hard time in order to see how you will manage to find solutions for those problems on spot. Always pay attention to their expression because it is the only thing that can give you a clue about what they are really thinking;
- Take you time to explain them the market size and the relevant element of novelty you will bring on the market which will make your product sale. State several business models and explain how you plan to make money;
- Than focus on your team and its capacity of managing the job. State your unfair advantage and insist upon the level of expertise of your team;
- Name your competition, preferably the best ones on the market, what they have accomplished and the level they have reached. Than make them understand why will your business be better and how will you manage to dethrone your competitors;
- Explain how you will get to be known by stating all the strategies you have developed in your marketing plan;
- Only now you can refer to money and milestones. Name the initial funding you provide and the money you need. Afterwards talk about the amount you need from the venture capital investors and how and when will you manage to return that amount;
- In the end, leave them a memento; let them on a thought they will have to think about. Make sure that you keep their interest alive and that they will want to hear from you again, that they will want to find out more.
If you have never done a pitch for a venture capital firm before, you should probably seek some advice from a professional.
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