What not to do when pitching Tech Startup to a VC: The dos and don’ts of pitching to a VC fund
All set to make that all-important first move towards your dream tech startup? Pitching tech startup to the right VC to raise funds for your new venture is one of the most crucial steps any entrepreneur has to go through. However, you have to be wary while doing so because one wrong move can cause you to lose a good prospective investor.
In their enthusiasm and desperation, many startups forget to do enough homework before approaching the VCs. This carelessness can set you up for failure in partnering up with that perfect VC you have had your eyes on for a while. We have compiled a few important do’s and don’ts for new tech startups so that their pitch brings them the best possible results they are looking for.
- Honesty is the best policy. Be honest and authentic with your proposal. Don’t exaggerate or pretend anything as it can backfire with a good VC investor who will usually instantly recognize it.
- Provide some solid evidence for your claims about your product. There is no point in telling an airy-fairy story without backing it up with some concrete data.
- Focus on your product and not on competitors or the market. Most VCs do their own research about those things themselves. Your pitch should elaborate clearly what you have on the table to offer.
- Focus on your strengths. No startup is perfect. However, clearly demonstrating something about your product that distinguishes it from the rest is important to impress the right VC investors.
- Research well about your targeted investor. If possible, study their past and present investment patterns. Go through their profiles, social media communications and try and find out if your particular idea has a chance to click with their investment preferences.
- Build a relationship with the VC. They usually prefer dealing with founders who share information about their progress over a period of time long before an actual investment dialogue. Email and social media are two great ways to achieve this.
- Try to understand the priorities and interests of the person who is sitting in front of you and use that knowledge to maneuver your pitch.
- Don’t pitch to a VC that is not the right one for your tech startup.
- Don’t pitch without having any communication or conversation with the target VC before pitching to them.
- Don’t waste too much time of the look of a presentation like the design, animations and PowerPoint, etc. Concrete data trumps everything else.
- Don’t exaggerate or make tall, pretentious claims. You are more likely to lose your face and trust in the process.
- Don’t ignore the competition. It is important to be aware of them and even learn a thing or two from them in order to improve your own product than being naively oblivious about them.
- Don’t be nervous or anxious while presenting your pitch. Body language tells a lot about your confidence and conviction about what you are saying or doing. If you are confident about your product proposal, it has to show on your face and gestures.