1. Practicing your pitch
After completing your deck, practice your pitch until you’re 100% comfortable presenting your story and each slide in your deck, and responding to the most common objections. Practice with your closest team members first and solicit their feedback, then also practice with your existing investors before going live with new prospect on your target list. We will also host a pitch practice session with you to offer our feedback. When you do go live, start with a couple names that are relatively low down your priority list so you can continue work out any kinks.
2. Going live
Investors are listening to what you say about your business but they are also evaluating you in the process. They’re trying to picture you running a big company, raising additional rounds of capital beyond this one, securing big partnerships with larger companies, and garnering the respect and devotion of your future employees.
- Project confidence - Rather than use words like we could reach $1MM of sales next year instead say you will reach $1MM of sales next year.
- Demonstrate your passion - Through the tone in your voice, the passion you have for the problem you are solving should be self-evident. Excitement is contagious. If the investor feels how excited you are for the opportunity in front of you, they will feel it as well.
- Engage directly with the investor - Do some research on who the investor is before the meeting. See if you can relate an element of your pitch to a portfolio company or something else that you know they are involved in. Building a rapport helps the investor envision you as their partner.
- Slow down and dumb-it-down - Most of us have a tendency to speed through our slides. Adrenaline is pumping and we know our content inside-out. Remember that this is the first time the investor has looked at your material in detail so resist the tendency to move through your pitch too quickly. You’ll also come across more confidently when you purposefully pause between points and take your time. And lastly, don’t assume the investor already knows your industry. Explain the basic principals that govern your market and business and don’t use acronyms that an outsider wouldn’t know.
3. Zoom vs. in person
Zoom for first meetings can be very efficient for both the investor and the CEO. However, for the investors that you have at the very top of your list, an in-person first meeting will give you a better chance to make a stronger and more lasting impression. Regardless, you should aim to have at least one meeting in-person if they are demonstrating interest. After all, if they invest you’ll be partners with them for the next 10 years!
4. Addressing objections
During your pitch practice you should always ask each of your mock investors what parts of the story or business they would likely challenge or be skeptical of. You should make sure that you have iron clad answers ready to address these questions. In fact, how you overcome these objections from investors is one of the most important parts of a pitch. If an investor feels that you haven’t adequately addressed their concern they will pass.
5. Following up after your pitch
A prompt follow-up from the pitch meeting keeps momentum going in the relationship and fully answers any lingering questions that the VC might have from your pitch meeting. It’s also a chance to demonstrate what partnering with you would feel like. Leaving the VC with the impression that you are responsive, transparent, and thorough will help them build confidence in you. Follow up by email the same day as the pitch. Thank them for their time, include a detailed response to any of their questions, and repeat back to them anything they told you about the timing of their decision-making process. For example, “thanks so much for the time today, as discussed I’ll wait to hear back from you after you Investment Committee meeting next Monday.” By writing them a follow-up note, you’re opening up a dialogue and creating a feeling of urgency to keep the process rolling, with the ball more clearly in their court.
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