Three Tips for Pitching Venture Capitalists

The most important thing to start with, before thinking of the pitch, is selecting and contacting the right investors in your venture capital firms and angel investors database. VCs with similar companies in their portfolio and having the same stage preference as the one your business is currently in are likely to be more interested in your business idea and willing to meet you and fund it.

What is an Elevator Pitch?

You have often heard the notion “elevator pitch” or “elevator speech”connected to entrepreneurs presenting their business idea to angel investors or venture capitalists. The name refers to the overview of the product or service you are going to need capital for. The term “elevator” implies delivering the speech in maximum two minutes, that is, the span of an elevator ride.

How Long is the Elevator Ride?

However, one should consider this two-minute duration metaphorical, as this pitch usually lasts about twenty minutes, that is, the maximum period of time suitable for a normal person’s ability to focus, however interesting the presentation may be. So, it is not a hurried presentation of a two-hundred pages business plan. It is meant to capture the attention of the possible investor without being too superficial, but also without becoming a bore.The two things to have in mind when making a written draft of the pitch are the content and the form. Both what you say and how you are going to say will matter.

Be Short, Clear and Confident

Give enough information but use rather short sentences, be careful with your intonation,pauses and body language and don’t forget you are a human in front of other people, not a robot or a talking book. Don’t make a long introduction, the investors should know what you do after hearing your first sentences. Practise delivering your speech to make sure it is smooth, not overwhelmed with technical terminology or PowerPoint slides, revise and update it until you give it the final shape.

Don’t Pitch Your Ideas, Pitch Yourself

What you are supposed to prove is that you have the suitable knowledge, necessary skills, concrete accomplishments and expertise, therefore, tangible concepts, to turn your innovative ideas into a successful business. Lots of start-ups fail not because of the lack of great ideas, but because the leaders and the team do not find the ability to constantly improve, update and put together all the above mentioned features, finding fast solutions to various challenges and problems.

Make Plausible Financial Projections

Proving you are capital efficient may be very difficult for an early stage company, as you do not have the previous experience or any figures showing how you used capital before. Business investors will ask you how much capital you need, what you are going to do with the money and when. The minimum amount that you are going to ask for should be enough to reduce the business risks. Although some VCs may prefer to leave financial projections to further discussions, you should be prepared and be able to focus on your future business income channels.

Don’t forget it is impossible to know everything and have a perfect business plan. Be aware of what you know and of what you don’t know, be transparent, don’t hypothesize, and prove you have a credible team of experts that will help you turn your idea into a functional business. Smart leaders will always surround themselves with even smarter people.