When raising institutional venture capital, first pitch calls with associates are a requisite step in most fund’s investing process. However, generating excitement about your business within a fund can often be difficult; associates spend their days talking to peer companies, and it is difficult to stand out, especially in a remote setting. Despite these less-than-ideal conditions, associates will ultimately pitch your business to their fund, so their understanding and excitement about your business is a critical variable in securing venture capital. An entrepreneur’s role is to prepare the associate to explain their business and succinctly eliminate disqualifiers.
Now, more than ever, mastering the art of remote-first pitch meetings is crucial for startups seeking funding. Here are some essential dos and don'ts to ensure your virtual pitch meetings generate excitement and kick off a successful process:
Do's:
- Qualify at the beginning of the pitch: Founders who ask qualifying questions about the fund signal the strength of the business and good sales skills. Asking questions like: ‘How do you provide value outside of capital as an investor?’ and ‘How many investments did you make last year?’ demonstrates that the entrepreneur is a savvy fundraiser.
- Next steps: You’re pitching for the next meeting, not for a check. Always ask: ‘What do next steps look like/what do you need from me?’
- Test Your Tech: Ensure your audio, video, and internet connection are reliable. Technical glitches can disrupt the flow of your pitch and leave a negative impression.
- Engage with Visuals: Use slides or visual aids to complement your verbal presentation. Keep slides clean and concise, highlighting key points to support your pitch. Founders can often wander without the structure of slides and lose attention.
- Be Transparent: Provide clear and honest answers to questions about your business model, market potential, and financial projections. Don’t exaggerate numbers: we take notes and will know the truth eventually.
- Showcase Your Team: Highlight the expertise and passion of your team members. Investors invest in ideas and the people driving them forward.
- Follow-Up: After the meeting, send a thank-you email expressing gratitude for the opportunity to present. Include any additional information requested during the pitch and reiterate your enthusiasm for the potential partnership.
Don'ts:
- Don’t Dominate the Conversation: Leave space for the associate to speak; if you are just speaking at them, you aren’t engaging them. Ask questions throughout the pitch specific to your business, such as, ‘Do you have TAM requirements?’ or Does this draw any similarities to any of the fund’s portfolio companies?’
- Don't Wing It: Avoid improvising your pitch. Preparation is key to delivering a polished and compelling presentation. Respect the time of investors by being well-prepared.
- Don't Overwhelm with Information: Keep your pitch focused and concise. Avoid overwhelming investors with unnecessary details or technical jargon. Stick to the most critical aspects of your business.
- Don't Underestimate the Importance of Body Language: Despite the virtual setting, body language still plays a significant role in communication. Maintain good posture, make eye contact with the camera, and use hand gestures appropriately to convey confidence and enthusiasm.
- Don't Neglect Due Diligence: Conduct thorough research on the investors you'll pitch to. Tailor your presentation to align with their investment thesis and portfolio interests.
- Don't Forget to Showcase Traction. Investors want to see market validation and traction evidence. Highlight key milestones, customer testimonials, and revenue growth to demonstrate your business's potential scalability.
- Don't Rush the Q&A: Allocate sufficient time for questions and answers at the end of your pitch. Be prepared to address inquiries confidently and clearly, demonstrating a deep understanding of your business.
Mastering the nuances of remote-first pitch meetings is essential for startup founders navigating the venture capital world. Following these dos and don'ts can increase your chances of making a memorable impression on investors and securing the funding needed to propel your business forward.
