How To Pitch To Venture Capitalists

When we were children we dreamed big and thought that anything and everything was possible. Not everyone lost this belief as they grew up and entrepreneurs are true examples of the ones who still hold tight to the notion that they can achieve their dreams. That being said, every journey is filled with battles that must be won to continue down the road and not everyone makes it. It is a sad and real truth that 90% of FinTech startups fail. The reasons are plentiful: unseen emergencies, lack of understanding of the market, outdone by the competition, etc. However, one of the biggest reasons startups fail is lack of funding. Those money trees we dreamt of as children just aren’t real.

Before you get disheartened and give up on your startup dreams, know this: There are ways to fund your dreams. For startups, one option is venture capitalists. These are the investors who will provide you with the money you need to finance your startup.  (You can read more about the VC option here.)

If you want to gain the support from these investors, you will need to create a pitch deck and a pitch presentation that sells the profitable nature your company. This presentation may well be the most important sale you will ever make, so prepare yourself.

The number one most important thing to do is (figure out and) present how your startup is going to change the business world. After all, if the concept is boring and common, the startup itself will slip between the cracks in the market and will not see a profit—which means the venture capitalists will not be willing to risk putting up the capital. Make sure you can quickly and succinctly summarize this argument, as it is the glue that holds the entire pitch together.

Then, lay out how it is going to make money. Here you need to show that you know the market and you know how your startup will recoup its investment (and then some).

Once you have clearly defined these two areas, get to work on the actual presentation. You need to present these facts in a way that entertains and enlightens. Do not expect to rely on cue cards and basic slides. Instead, know the facts and speech enough that you can work off book and create visuals that have a wow factor to draw investors in. Use demonstrations and humor to draw investors to the project in a way that makes them feel comfortable with the situation. Most importantly, make the presentation about the project and the investors—not about you.

When it comes time to approach the potential investors, do not overdo it. Yes, it can be tempting to approach every venture capitalist you can find and pitch to all of them, but it is a much better use of your (and their) time if you do the research and only approach the venture capitalists who have expressed interest in your area of the market. Find the right investors and make sure they know why you are approaching them specifically. Once you have a meeting, give them your well-crafted presentation and be ready to respond to any issues they might have. Do this and your hard work will pay off.