Pitching your business to a VC investors seems simple, but almost everyone who decided to go for it realized fairly quickly that it’s not an easy task. When it comes to creating investor presentations and communicating with VC funds, there is a lot of good advice on the web and it is worth getting acquainted with them. However, we decided to add something to this knowledge base.
Are you just starting your adventure with building a company and fundraising? If you chose us to begin with, we are very pleased. Take a few minutes to read our quick guide – perhaps it can help you get started? Then, if you have any questions, feel free to contact us via Linkedin, our team will be happy to help you.
Below you’ll find some of the issues we believe are important. Take a moment to reflect on them, we would like you to be able to present your project in the best possible way and this could help!
Match the project area with the fund’s competences
Most VC funds have specializations. This is due to a simple thing: the team’s experience and track record. VC’s support projects where they can add value. We at Aligo VC will help you if you are an innovator in MedTech or CleanTech, because we know these areas. If you develop mobile games or create technologies for the space sector, we will be happy to drink coffee together, but it will be difficult for us to establish business cooperation.
Check the investment stage preferred by the fund
VC funds have their favorite stages of startup development and it is at these stages that they invest. There are many factors that decide about it. Here again, the team’s experience comes into play, but the sources of investment financing, the approach and expectations of investors regarding the level of risk and duration of the investment also play an important role.
Our fund is often involved at an early stage and invests in companies that are not profitable yet. But when your business is already selling and growing, and you’re interested in scaling it, we will also be able to help.
Don’t be out of nowhere
Formally, it does not matter, but in practice it is quite important. No, it’s not that we’ll only invest in your startup if you’re our buddy. However, it is worth remembering about a personal brand. If you are an expert in some field, have experience as an entrepreneur or manager, don’t hide it. Build relationships, participate in the life of the startup scene and take part in events and be active on Linkedin. Your project is not only a presentation and a business plan. It is primarily the man behind it. We want to know him too.
Think about the benefits
We’ll get to the pitchdeck in a moment, but let us highlight a few more things. Think carefully about the value proposition of your product or service and tell us about it. Focus on the market and the benefits you give to your customers. If we understand each other on this level, it will be a big step towards success.
Don’t forget about the numbers
Whether we like it or not, business is all about numbers. In venture capital, numbers are our second language and it would be good if you could communicate in it at least a little.
Example? If you want to convince an investor that your business will be profitable, you better have numbers up your sleeve to support this. Meaningful numbers and data from reliable sources are the basis of any good pitcheck.
Be honest about your team
Each investor will ask you about the team. We will do it for sure, because especially in the early stages, the founding team is the most valuable thing you have. After all, without it, your idea would remain just an idea forever. But remember that nobody expects you to know everything from your team. The investment is, among other things, to fill the competency gaps and honesty at this stage aims to map these gaps.
There is no such thing as a perfect pitchdeck. But there are winning investor presentations, there are rules for creating presentations and templates that are worth knowing and, at least partially, using. Do your research. Watch presentations that have won the hearts and wallets of investors on the Internet and on YouTube. Watch movies and even comedies, because they have a grain of truth in them.
From among other good beginner tips, we recommend you check out The 9 C’s. If your presentation will be:
Clear, Concise, Credible, Consistent, Conversational, Conceptual, Concrete, Compelling and Customized – it will definitely be good for reception.
As for presentation templates, there are many of them. Perhaps the most popular is Guy Kawasaki’s template, considered by some to be legendary. It is certainly worth comparing your presentation to the famous 10 slides. Maybe you will find something that can be improved?
Finally: make use of VC feedback
You will hear “no” more than once. Moreover, you will probably hear them many times, it’s normal. But don’t hesitate to ask “why?”.
At Aligo VC, we try to return to startups with feedback, but we do not always succeed due to the lack of time (we suspect that it is similar in other funds :).
However, if you give us time to analyze your project and you hear “no” you will want to know why – we will be happy to share our thoughts with you.