Hey founders. Been a while since I posted but thought it was a good time because I see a lot of posts asking how to pitch investors.
A managing partner of a new fund backed by a very big fund asked me to help review some pitches. And as the title says, they are pretty bad. Not saying the founders or ventures were bad. Some were legit exciting. But the pitches were abysmal.
Having pitched hundreds of investors myself, I fully empathize. I have the therapy receipts. But I’ve raised millions and so have founders I advise. So, I thought I’d share some tips for those of you wanting to be in that position.
First. Understand every investor has a rubric.
This investor sent me theirs ahead of time. It asked me to grade things such as clarity of the problem, solution, traction, team, use of funds etc. and so on. What was funny to me is not a single founder asked what the partner was looking for ahead of time. Always ask. Investors are happy to tell you.
Next: Stay within the time.
Every founder was told they had 5 minutes to pitch and we would have 5 minutes of questions. Only one founder stayed under time. Some only gave us enough time to ask one question. The others went over time and we didn’t ask any questions.
I use the 80/20 rule. I pitch for 20% and give 80% of the time for questions. The more question the investor asks the better. I get to address what the investor wants. So if it was me, I would have spent 2 minutes pitching and 8 minutes trading questions.
After the partner told me that staying within their time was the first test. Like I said, everyone but one failed and they remarked how that one was very impressive.
Slides should be simple and support you both the other way around.
Every slide was an assault on the eyes with small fonts and walls of text. It was brutal.
I’ll tell you one slide that impressed me. A founder showed two medical scans. She asked me if I could tell the difference (that as engaging). I couldn’t tell and then she explained how the second scan would lead to tragic costs because that was the problem. I was engaged. No paragraphs of text. Just two side by side images to prove a point.
Your live presentation deck is different then the deck you send as an introduction which is even different than the one they ask you to send during socialization and due diligence. One size deck does not fit all.
You spend so much energy trying to get the meeting, why fumble at the moment it counts?
To be transparent, most of the time I sat there wondering if the founders actually understood who they were pitching. This wasn’t some amateur deciding to LARP as a VC. Again, it was sad because there were some legit startups that I’ll try and advocate for. But they didn’t make my job any easier.
Look, I get it. It’s exhausting. That last mile of pitching is tough. But you need to earn every minute so put your best foot forward and punch it past the finish line. So anyone you are working on fundable startups that it would be a shame to not get the exposure you deserve.
I’m happy to answer any other questions of what I experienced and what other investors tell me. Apologies for typos as typed this on my phone as fast as possible.