Updated: Nov 18, 2021
Telling a Story is important, but besides a story an entrepreneur needs to address Venture Capital Firms following Key points while Pitching :
1) The Problem / Pain point which your startup has identified and intends to solve. Not only in words ,but in financial terms too one must convince the VC Firms how severe the problem is ? . Sorting to Data can be meaningful here .
2) The Solution to the above mentioned problem : It is not necessary the you describe the secret sauce ,but in a way you need to send a clear message to the investors as to how are you going to solve the identified problem.
3) Where & How will you find your Clients : A Letter of intent may be enough for a seed stage investor , but to a Venture Capitalist, real customers do matter. You need to explain the strategy as to where & how shall you find your potential target audience.
4) The Team Matters : The Founding team, their background , their expertise & their credentials matter to the Investor . Investors also want to know how much money have they raised before ? & how much return was generated along with payment schedule. Who are the experts in your team & who are your Advisors ?
5) Competition is another key factor which investors would want to know as to where you stand in the league & who are your competitors. This points out your barriers to success either in terms of solutions or technology or the market presence.
6) Your Finances are equally important to the investors, after all it's their money which they invest in your Dream project. Investors want to know your Budget , your business models, your financial models on month-to month basis & also on a long term basis of say next 2-5 years down the line . Your plans as to when to raise the next round, your break even point , how profitable you are going to be & how you will use our funds ? VC firms also want to know your exit plans .
7) More than everything else, it's your ask , what the investors are interested in. VC Firms need to know how much you are raising. Don’t go after a valuation, just tell them how much you need and what you will use it for.