Aidi — How to Pitch to a Venture Capitalist (VC): Essential Tips for Approaching Pitch Meetings

Venture Capital funding is one of the fastest ways for startups to scale and achieve their long-term goals. It is the primary financial force behind the successful growth of many startups in almost every industry. Every month, VCs review hundreds of pitches, looking for something that truly stands out. Having a good pitch deck does not guarantee a good pitch presentation to a Venture Capitalist.

Pitching to a venture capitalist can be one of the most crucial moments in the life of a startup founder. It is your opportunity to convince seasoned investors that the hard work you’ve put into building your startup is worth their money, time, and trust. It is your “I need you to survive” moment. Whether or not your company receives funding from a VC is highly dependent on how well you can convince investors that your business is an excellent investment.

When you are invited for a pitch meeting with a VC, how do approach the meeting and create a lasting impression?

• Know Your Numbers: One of the first things that can make an investor lose interest in your pitch is when you don’t know your numbers accurately or even at all. The major reason for pitching to an investor is to get funding, but there is no basis to ask for money if you cannot defend your business’s current financial state. Your numbers are not things that should only be known by your accountants. Every founder should be well aware of your numbers or at least key metrics, even as little as cost of production because those are the things that inform your business’s financial state and tell you you need funding. A founder who doesn’t know his numbers will be seen as unserious by any investor. 
• Know Your Audience: Before you walk into any meeting room or join that virtual call, do some research to better understand who you will be pitching to. While it’s good to be confident in your “pitching skills”, you need to understand that each VC firm has its own specific criteria for investing in any startup. Knowing the interest areas of the venture capitalists, their technical or financial background, what they look for in startups, etc can help you tailor your pitch to show how your startup aligns with their interests.
• Start Strong with a Compelling Story: Venture capitalists don’t have time to sit around listening to boring stories. The first 5 minutes of your pitch presentation should captivating. They should have an idea of what the opportunity is and how you intend to take advantage of it. Start with a compelling story, stating the problem your startup is solving and how you are solving it. Make it relatable, emotion-evoking, and also memorable for them. Also, let them know your market size because VCs like to be sure of the scalable opportunities of any startup.
• Be Clear, Concise, and Straight to the Point: Venture Capitalists have very short attention spans, so you need to make sure your presentation is clear, concise, and straight to the point, with each slide highlighting essential information. Avoid the use of complex terms or tech jargon. Use simple words to convey your points in case the VC is not an expert in your industry. Highlight key elements like the problem, your solution, the market size, the business model, traction, team strength, and ask. If there’s a time range given for your presentation, ensure to stick to that time.
• Prepare for Tough Questions: VCs will ask tough questions to test your knowledge of the industry, confidence, how well you know your pitch deck, and preparedness for the meeting. The questions can be spontaneous from your presentation or pitch deck. For example, the questions can be about your market size, competitors, risks, growth strategy, revenue generation, and so on. Be confident in answering all questions to the best of your abilities and don’t be ashamed to admit what you don’t know at the moment. But make sure to add that you will think about it or do more research and get back to them.
• Confidently State Your Ask: Be specific about the amount of funding you are seeking for your business’ growth and how you intend to use it. VCs can be easily put off when a founder is not clear about how much funding he/she needs. Break down how the money will be allocated to show that you have a clear growth plan. Don’t be covetous; ask for a realistic amount that aligns with the needs of your startup at the stage of growth that it is. Also, show a projected timeline for reaching your goals if the funding is provided. This shows you are strategic and have a clear plan for your business growth.
• Practice a Lot: Practice makes perfect. Practice your pitch deck and ensure you know it like the palm of your hand. You don’t want your presentation to sound rehearsed, and neither do you want to start reading your pitch deck word for word. Knowing your pitch deck helps you prepare for spontaneous questions. You can also do presentation rehearsals with your friends or fellow founders and ask for constructive feedback. Taking it a step further can be recording yourself while practicing personally to hear yourself and note areas for improvement.
• Follow-Up and Build Relationships: Your pitch presentation is not complete if you don’t attempt to build relationships with the VCs after the pitch presentation. After your pitch meeting, make sure to follow up with the VCs, expressing your gratitude for their time and the opportunity to present to them. Even if the VCs don’t invest immediately, make sure to keep communications open with them from time to time. You can ask for feedback to improve your pitch for the next time you are opportune to present to them or another VC. Also, share period updates and milestones of your startup.

Keep in mind that every pitch meeting is an opportunity to learn and improve. It’s just like attending interviews for a job hire. Even if you don’t secure funding right away, use each experience as a stepping stone toward perfecting your pitch and finding the right investor for you. Best of luck!