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What VCs look for in startup pitches

47 pointsby jackyyapppalmost 13 years ago

5 comments

fragsworthalmost 13 years ago
I get two different stories from different crowds on this issue.<p>From many VCs and angels themselves - at least the ones that get their articles upvoted on this site - I get the impression that they dislike being bullshitted at. They hate people who are disingenuous. They don't care too much about projections or future plans. They just want to see how good your team is.<p>From everyone else in the industry (those looking for investment, those who have found investment, executives in large companies, etc.) I hear a completely different story. Tell them the world. Make projections bigger than you think is realistic. Talk yourself up. Show interest in things that the VCs are interested in - even if you aren't. Create a story of the future that will please the investors. This is not always exactly the same story you <i>really</i> want to go with.<p>Now I really prefer doing the former to the latter. I just don't know how effective it really is and I hear different stories about how to behave when searching for investment. VCs and angels aren't mind-readers, they aren't super-human, and they have the same failings as everyone else. If you can get away with the latter without <i>appearing</i> dishonest, you might have a better chance at bagging the investment deal.
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atiripalmost 13 years ago
Help me out here please.<p>One would think that any VC's absolute core, essential, vital skill would be "read between the lines", "see through", "smell the stuff"? So they can pick the best investments regardless of the pitch. Like having a sixth sense. If you can't do that, what good are you investing?<p>But no. Sometimes I feel that even YC is become pitching contest, not startup contest. Countless on stories here on how to act, say things, what to wear, what to do etc. Is it really come to that, that even PG picks best pitches, not best idea/teams. If yes, why do you bother to apply? If no, why do you bother to polish the pitches?<p>I have hired lot of people to work for my small businesses througt the years. I have always read between the CV lines, thrashed the "best" ones and picked "worst" ones, they all turned out great workers. So?
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pedalpetealmost 13 years ago
Is it just me or does Vincent Lauria stand out as the one guy in the bunch that I wouldn't want to pitch (or have a beer with).<p>I've noticed this trend with VC's I've met. The bigger the VC name, the more respectful they are of entrepreneurs and what they go through.<p>I know there are lots of people who pitch bad ideas, but that is what having good deal flow is about. Getting your schedule so packed with good people/businesses that their is no room for the ones that wouldn't make it.
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dinkumthinkumalmost 13 years ago
I mean that's great and everything. I love it. But. If the past and the present was so great, I wouldn't need money. I think Mark Hsu's paragraph on "Avoid overusing buzzwords" was pretty good; I think the avoid "Netflix for Pandas" thing is commonsense now but the notion that should actually use specific numbers when making your pitches can't be shouted enough.
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nagarchalmost 13 years ago
same as ? <a href="http://web2asia.blognhanh.com/2012/07/a-must-read-before-making-any-venture_24.html" rel="nofollow">http://web2asia.blognhanh.com/2012/07/a-must-read-before-mak...</a>
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