Anyone ever pitch a venture captial firm?

[damcv62]

I got invited out to pitch a start up I've been working on, a first for me. Friend of a friend found out about the idea, asked me to come meet out on Sand Hill(guess this is a well known tech investor area?) I know my product, I know the idea has value(based on a buy out offer from a shark tank type group, but I want to build this, even if the offer made me think long and hard about it).

I guess does anyone have any pointers? Suggestions? Lots of smart people on here, I'd appreciate any insight you might have. I'm not going to get into the exact idea on an open forum, but I do have a couple of patents related to the idea and some other things in the works.

[texex91]

They are going to go heavy into the business aspects of it, financials, projections, etc...you will want to have someone with you that has been to this rodeo a few times. You will also want to have them prep you. Sand Hill is VC heaven and ruthless.

[rr-nyc]

Don't stop at knowing your product. Know the the market and competitive landscape. For VC, projections and forecasts aren't as important as the understanding overall market value. Some see forecasts as meaningless numbers anyhow.

I've presented a start up to both VC and PE firms for a company I worked for. I found VC to be far more forgiving in regards to drilling you after your presentation.




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[Star Ferry]

My father is in the PE business -- targeting lower middle market.

VC differs in that it targets early stage companies that may have little or no financial history.

They will drill you on your target market and the overall competitive environment.

Some questions could seem to come from out of left field -- largely intended to reveal your demeanor, quickness and capability under pressure.

Communication skills could be as or more important than your actual idea. They aren't going to spend money on due diligence until they've already been impressed by your pitch.

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[Salinasma]

Originally Posted by rr-nyc

Don't stop at knowing your product. Know the the market and competitive landscape. For VC, projections and forecasts aren't as important as the understanding overall market value. Some see forecasts as meaningless numbers anyhow.

I've presented a start up to both VC and PE firms for a company I worked for. I found VC to be far more forgiving in regards to drilling you after your presentation.




Sent from my iPhone using Tapatalk

I agree, make sure you can make projections/forecasts tie back to expectations based on competition, target market, market size, etc. You don't want to throw numbers out there, and they say so what? I have no experience with pitching but I am a numbers guy and the numbers have to mean something. Know your competition. Study potential shortfalls/negative impacts of your product so you can present how you'll potentially turn those into opportunities or strengths. Good luck!

[Mr Daytona]

Raised millions for my clients. It's not a big deal if you are prepared.

[Limestonedan]

Everything mentioned by others resonates.

For what it's worth, two things I'll add which might make it easier to raise money and VC's might think about: Team and prior success. VC's like to invest in teams who can figure stuff out. Period. Especially ones that have worked together with prior success. Often times, companies will need to pivot. This might be because the original idea/plan, team, market, product etc hasn't worked out. Having a core group of 2-3 really smart, driven people who constantly challenge each other and who are great problem solvers who can then rally behind the arrow is much more appealing and sustaining then one founder going it alone. VC's listen to how the team interacts on pitch day and other subsequent meetings.. Again, take it for what it's worth, my humble opinion..

[Mr Daytona]

Originally Posted by Limestonedan

Everything mentioned by others resonates.

For what it's worth, two things I'll add which might make it easier to raise money and VC's might think about: Team and prior success. VC's like to invest in teams who can figure stuff out. Period. Especially ones that have worked together with prior success. Often times, companies will need to pivot. This might be because the original idea/plan, team, market, product etc hasn't worked out. Having a core group of 2-3 really smart, driven people who constantly challenge each other and who are great problem solvers who can then rally behind the arrow is much more appealing and sustaining then one founder going it alone. VC's listen to how the team interacts on pitch day and other subsequent meetings.. Again, take it for what it's worth, my humble opinion..

Excellent insight right here.

[Laszlo]

I used to pitch scripts - what seems impossible isn't and if you're good and your idea has opportunity they'll bite.

[Laszlo]

Originally Posted by Mr Daytona

Raised millions for my clients. It's not a big deal if you are prepared.

Yup!

[damcv62]

Originally Posted by texex91

They are going to go heavy into the business aspects of it, financials, projections, etc...you will want to have someone with you that has been to this rodeo a few times. You will also want to have them prep you. Sand Hill is VC heaven and ruthless.

Where would I find someone who has been there before? Currently it's me, myself and I. While I have financials and projections pitching a VC group is all new to me.

[damcv62]

Originally Posted by rr-nyc

Don't stop at knowing your product. Know the the market and competitive landscape. For VC, projections and forecasts aren't as important as the understanding overall market value. Some see forecasts as meaningless numbers anyhow.

I've presented a start up to both VC and PE firms for a company I worked for. I found VC to be far more forgiving in regards to drilling you after your presentation.




Sent from my iPhone using Tapatalk

Thank you for the suggestions. I was picked for an incubator program put on by a local investment group, which covered some of this. I do know the market, I've been in it for quite a while. I've always been good at sales, so speaking to a group I'm very comfortable with.

[damcv62]

Originally Posted by Star Ferry

My father is in the PE business -- targeting lower middle market.

VC differs in that it targets early stage companies that may have little or no financial history.

They will drill you on your target market and the overall competitive environment.

Some questions could seem to come from out of left field -- largely intended to reveal your demeanor, quickness and capability under pressure.

Communication skills could be as or more important than your actual idea. They aren't going to spend money on due diligence until they've already been impressed by your pitch.

Sent from my SM-G9200 using Tapatalk

Ok, that's good to know. I'm good on my feet, and don't let pressure get to me. So at least I have that going for me. Thank you for sharing.

[damcv62]

Originally Posted by Mr Daytona

Raised millions for my clients. It's not a big deal if you are prepared.

So do you work on a commission? Or how does someone become a client of yours?

[damcv62]

Originally Posted by Limestonedan

Everything mentioned by others resonates.

For what it's worth, two things I'll add which might make it easier to raise money and VC's might think about: Team and prior success. VC's like to invest in teams who can figure stuff out. Period. Especially ones that have worked together with prior success. Often times, companies will need to pivot. This might be because the original idea/plan, team, market, product etc hasn't worked out. Having a core group of 2-3 really smart, driven people who constantly challenge each other and who are great problem solvers who can then rally behind the arrow is much more appealing and sustaining then one founder going it alone. VC's listen to how the team interacts on pitch day and other subsequent meetings.. Again, take it for what it's worth, my humble opinion..

Right now it's just me. No hires. So hopefully that doesn't reflect poorly on the idea.

[Mr Daytona]

Originally Posted by damcv62

So do you work on a commission? Or how does someone become a client of yours?

One of my services is working as a company's outsourced CFO. Companies get my services on a contract basis at a fraction of the cost. It's been very lucrative for me and I have helped many business owners achieve the American Dream.

One becomes a client if they have a problem and I can fix it and we can come to an agreement. I also have to like who I'm working with.

[damcv62]

Originally Posted by Mr Daytona

One of my services is working as a company's outsourced CFO. Companies get my services on a contract basis at a fraction of the cost. It's been very lucrative for me and I have helped many business owners achieve the American Dream.

One becomes a client if they have a problem and I can fix it and we can come to an agreement. I also have to like who I'm working with.

Makes sense. Thanks for the insight.

[jhilly8982]

I would be prepared for this:

Be able to sum up your product in one sentence. Ex. We are the uber of hotel rooms

In 5 years will your company be more relevant or less relevant than it is today?

What is different about your product?

Who is the competition?

What is the TAM? (Total addressable market)

Show the product, sell yourself, be passionate, be interesting.

Know the basic financials.

[damcv62]

Originally Posted by jhilly8982

I would be prepared for this:

Be able to sum up your product in one sentence. Ex. We are the uber of hotel rooms

In 5 years will your company be more relevant or less relevant than it is today?

What is different about your product?

Who is the competition?

What is the TAM? (Total addressable market)

Show the product, sell yourself, be passionate, be interesting.

Know the basic financials.

Thanks. Those are all great.

[Etschell]

they waiting to give you their money. are you man enough to take it?

[codecow]

No tips for your pitch however when you're out here on Sand Hill make a point to stop in at the watch store at the Rosewood on Sand Hill.

[damcv62]

Originally Posted by Etschell

they waiting to give you their money. are you man enough to take it?

Yes.

[damcv62]

Originally Posted by codecow

No tips for your pitch however when you're out here on Sand Hill make a point to stop in at the watch store at the Rosewood on Sand Hill.

Thanks for the tip. Always like to stop by local places when I travel.