Venture capitalist Ben Narasin has listened to more than 1,000 pitches per year from entrepreneurs over the years. One thing he can say from his experience is that “a lot of entrepreneurs don’t know how to pitch.” On the contrary, too many people don’t even know what a pitch is in the first place.
In this article, battle-hardened Ben Narassin teaches you how to pitch “this is the best” from a VC perspective.
As a venture capitalist, I’ve been participating in Y Combinator’s biannual “demo days” (pitch presentations) since around 2005.
In April 2021, Seed Accelerator Y Combinator held its 32nd Demo Day, with more than 300 companies pitching. All presentations were made using Zoom. Despite its reputation, Y Combinator is a great training ground for entrepreneurs to pitch.
Entrepreneurs have one minute to do it all.
Ben Narasin is a venture partner at New Enterprise Associates (NEA) and has a 25-year career as an entrepreneur himself.
I also run a website where any founder can send me a one-minute video pitch. If you send me a video pitch, I always reply with a video.
After hearing countless pitches over the years, I can say one thing.Far from knowing how to pitch, many people don’t even know what a pitch is in the first place.I’m saying that.
I’ve heard all sorts of things, from people who keep talking to themselves as if they’re going to be popular with the general public while the story jumps here and there, and people who talk at length about general theories that people seem to like.
A good pitch is one that tells the audience exactly what they want to know and is detailed and easy to understand.
A pitch isn’t about closing a sale on the spot. It’s about creating a space for people to listen. I’ve seen over 1000 pitches a year, ranging from 1 minute to over an hour. Of the more than 300 startups that participated in Y Combinator’s demo day this time, we will be interviewing about six of the best one-minute pitches.
From the standpoint of a venture capitalist who faces entrepreneurs across the table, I will introduce what I think is the best way to pitch.
1. Focus on 6 things in a 1 minute or less pitch
In a short pitch of less than a minute, tell us who you are, what you do, who your product or service is for, what you think people will like about it, how much you want to raise, and other metrics. Focus on KPIs.
Once you’ve successfully landed a meeting with an investor on your 1-minute pitch, move on to tips #2-14. If you can’t do it, go back to the pitch for 1 minute, refine your content and try again.
2. Use the pitch deck properly
Don’t ask, “How would you like us to proceed? Do you want me to give you a pitch deck, or would you rather just give me a rundown?”
A lot of time and thought went into preparing that pitch deck. I have to be active. Remember, the pitch deck is a conversation navigator, not a replacement for conversation.
3. Don’t let important slides get buried
Make sure the most important slides for investors are at the top. It’s okay to use a “summary slide” to tell them what you’re going to say. It is an effective way to bring earnings forecasts, which usually appear in the second half of the pitch deck, at the beginning.
4. Put your logo on every slide
You never know who will come in late or pass by. If you explain using a pitch deck without a logo, you may not be able to understand who made the announcement. To avoid this, put the logo on every page of the slide. Especially when presenting on stage or pitching remotely.
5. Paginate your slides
This helps both remote and in-person pitches. Depending on the development of the story, you can jump to another page of the same material and explain it.
6. Arrive at the venue early to prepare
Get to the venue early to test your equipment and familiarize yourself with the room. Make sure the first slide is out quickly so that investors don’t panic if you have to give an “elevator pitch” before they get to the room. Keep
7. Prepare multiple backups in case of unforeseen circumstances
Have some adapters and backups. The more backups the better.
Put your pitch deck on your hard drive, in the cloud, on a USB stick, and have a printout ready. I don’t know what kind of trouble will happen.
One entrepreneur I was coaching once had a power outage at a venue and no network connection. But I had a printout so I managed to pitch.
8. Respect the question, but if there is an answer on the slide, ask if you can wait
Investors are usually smart, but they don’t know the business as well as you do. If you have a question, answer it and then return to the pitch to continue the explanation.
Don’t skimp on the question, but it’s never rude to politely tell them that there’s an explanation that might help answer the question. You could ask if it would be better to go straight to that slide, or if you could wait until you got to that slide. Most people will tell you to wait.
9. Don’t try to close the first meeting
The goal of the first meeting is to win the second meeting. The “sales ABC” of “Always Be Closing” doesn’t apply to the first pitch.
On-the-spot deals are extremely rare, and are usually limited to investments in the “seed” stage (the stage in which a company is preparing to start a business) or the earlier “pre-seed” stage. The job here is to give investors enough information to make them want to dig deeper.
10. You don’t have to be right all the time.Listen to others with an open mind
Venture capitalists invest in people. I value who you are and how you think. The first pitch should be about yourself.
You should speak plainly and logically, but if investors see you as inflexible, you’re not “coachable” (in VC parlance). Sometimes it seems.
You should be confident in your explanations, but be open-minded to different opinions. My favorite venture adage is “Keep your vision strong and your path flexible.”
11. Get to know your audience
Before you meet with an investor, do your research thoroughly.
It can also be a waste of time for investors who don’t typically invest in their field of business. If you’re a regular investor in your field, you may not need basic market data or a lengthy introduction.
12. Don’t explain how monkeys evolved to humans
In addition to the points above, it is important to avoid long slides of the evolutionary process, such as monkeys evolving into Neanderthals and then humans in suits. Thing.
If investors don’t know the “evolution” of the field leading to the business you’re talking about (unless it’s really new, like the web came out in 1994), you’re in the wrong room. , you may be talking to the wrong people.
13. Be kind to your Executive Assistant (EA)
Partners rely heavily on Executive Assistants (EAs) to prioritize and keep work on schedule.
That’s why their opinions and feedback are so important. Investors may be notified if something goes wrong with their interactions. On the other hand, if you treat them kindly, they may become your best friend when it comes to coordinating your schedule.
14. Polish, polish, polish
Bring your best pitch deck. Practice your presentation repeatedly before the meeting.
*This article first appeared on June 2, 2021.
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(Translated by Yukari Watanabe, edited by Ayuko Tokiwa)
Source: BusinessInsider
Emma Warren is a well-known author and market analyst who writes for 24 news breaker. She is an expert in her field and her articles provide readers with insightful and informative analysis on the latest market trends and developments. With a keen understanding of the economy and a talent for explaining complex issues in an easy-to-understand manner, Emma’s writing is a must-read for anyone interested in staying up-to-date on the latest market news.