When preparing for a meeting with venture capitalists, you will need to create a PowerPoint presentation, which is also known as your pitch or “desk”. Preparing a good pitch is important, and you want to keep things as simple as succinct as possible. Having a pitch that is easy to understand will enable you to highlight benefits of your business model easily, and will ensure that venture capitalists will have an easier time understanding your plan.
When preparing your pitch to venture capitalists, be sure to include:
- A mission statement should be the most important part of your pitch. A simple mission statement is better than a complex one. You will find that the most effective mission statements are those which detail the benefits, purpose, and objectives of your company in a paragraph or two. If you can keep your mission statement short and pointed, you will find that it is far more effective than a long winded one.
- Present the team that will be working with you. Having a team is vital to convince venture capitalists that your company will be working for the long haul, as no venture capitalist will want to invest if you can’t even get other people to work with you.
- Make sure to present a problem that your business will solve in order to ensure that your pitch is effective. Rather than just being another company dealing with products or services in general, illustrate a particular need and how your company is the right one to fill that particular need.
- Show how your company will provide the solution to the problem presented. Don’t just talk about how your company will solve a problem, but illustrate it clearly and in a visual manner. Show images of your product, and illustrate the benefits of using it.
- You may not think that your unique product has competition, but you would be surprised at how many products meet a similar need. Find the companies and products that will be your closest competition, and make sure to illustrate just how the solution that you provide will be better and different than theirs.
- Talk about how large the market for your product is. Are many people experiencing this particular problem? Are many people looking for the solutions to their problem, and will your product provide that solution? Illustrating the demand for your product is one of the best ways to ensure the interest of investors.
- Create a strong business model that will detail how you will reach the state of financial solvency. Having a plan that will lead you to success is the only way to gain the confidence of investors in your company.
- Detail exactly how much money you need, what the specific need is, and how the money will be distributed and used effectively to help your company expand. Make sure to add an amount for unforeseen circumstances and difficulties.
- Present milestones in your company’s progress, so your investors have an idea of when they will see tangible results thanks to their investments.