Pitching to a VC is all about YOU. An investor is investing in you, as much as your idea and business concept.
Thinking startup? David S. Rose’s rapid-fire TED U talk on pitching to a venture capitalist tells you the 10 things you need to know about yourself — and prove to a VC — before you fire up your slideshow.
David Rose is a serial investor and a serial entrepreneur. Here’s his list of what is important in convincing an investor that you are the right choice.
And of course, it needs to be presented with an infectious enthusiasm!
On presentation techniques, and powerpoint, David says:
“Without question I’ve seen many presentations (both with and without PowerPoint) that are Too Slick, and to me they are at least as much of a turnoff (perhaps even more) than is one that is Too Rough. HOWEVER, that’s not the only choice one has. The slickness is *not* just a function of the slides; it has much more to do with how over-rehearsed, or patronizing, or ‘un-real’ the presenter is. I see hundreds (perhaps even thousands) of presentations each year, including many dozens at conferences like TED, where presentation is often elevated to a high art. And while great presentations are far from common…they do happen.
There’s a wonderful word, first used by Castiglione in 1528, that nails the concept. “Sprezzatura” is “a certain nonchalance, so as to conceal all art and make whatever one does or says appear to be without effort and almost without any thought about it.” That is to say, it is the ability of the courtier to display “an easy facility in accomplishing difficult actions which hides the conscious effort that went into them.”
If you watch the very best presenters at their very best, people like Larry Lessig and Rives and Steve Jobs and Seth Godin et al, there is absolutely NO feeling that they are Too Slick. But all of these guys spend absolutely enormous amounts of time preparing their slides, rehearsing their presentations and mastering the technology…so that the result comes off as “without effort…and thought”. ”
Business growth is almost invariably accompanied by, and demands, personal growth. It’s part of the package that means an entrepreuner has to run the business, recruit, motivate and inspire other leaders as well.
You can’t pull off a high return venture without being a strong leader or becoming one in the process (often as business grows, if the personal resources are not there the the business will stall, or the person will opt out of the leadership role – or be forced out).
If you know this going in then you can prepare for it.
Marshall Goldsmith is a coach to CEOs. In this book, he lists the flaws in people that are holding them back from reaching the next level. Often these flaws are the same things that have helped people be succesful (so far), but are now acting against them.
So rather than telling you what to DO, it tells you what to STOP DOING.
Summarised in 2 parts… (please click to view or right-click to save)
AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED (AVCAL) AVCAL was established in 1992 as a forum for participants in the private equity and venture capital industry. AVCAL is the central voice of the Australian industry and its membership includes almost all the domestic, regional and global private equity and venture capital firms active in Australia.
This is the report of 2009 as prepared by Ernst & Young – The survey results are based on the FY2009 activities of 63 Venture Capital and Private Equity firms, representing $24.5b in funds under management.
Guy Kawasaki is famous for his involvement in Apple (small company, has some great products apparently) and is now in the VC space.
He is an entrepreuner and an investor… a great mix.
In this video he covers early stage venture capital, and his thoughts on that. He eloquently covers a wide range of topics from viabiity v fundabiity, teams and “shitty” powerpoint.
AVCAL (Australian Private Equity and Venture Capital Assoc) today called on the Federal government to urgently develop legislation to restore international investor confidence in Australia.
AVCAL’s comments follow the release of draft rulings/determinations from the Australian Tax Office. [TD2009/D17 Income tax: treaty shopping... and TD2009/D18 Income tax: can a private equity entity make an income gain...] The release of these draft rulings /determinations provides an opportunity for the Government to clarify tax policy in relation to these issues.
Business owners looking to raise venture capital for business, that DON’T live and die by numbers – and it is more often than you would think – will be marginalised by investors.
No matter how powerful your vision, or appealing your product, if you are unable to present accurately and effectively the current position of your company, you can say goodbye to the funds from investors.
Here are a few tips that you should consider about your business financials when looking at raising capital:
1) If you, the business owner, are not comfortable with the numbers, then you need to recruit someone who is.
2) Even with a good numbers guy, the numbers need to be presented effectively, clearly, concisely, and without “noise” (=too much detail) ie summarise, as well as have the detail handy just in case required.
3) It goes without saying, your proposition must make lots of money for yourself and the potential venture capitalist. For example – venture capitalists require at least a compound 30% return but depending on the risk may go up to 100% or more.
4) Have an effective framework in place to regularly and accurately demonstrate to your stakeholders (your investors, board, employees, banks etc) that you are on top of your numbers.
Remember trying to attract venture capital investors is all about providing an expectation of a return for a given set of risks. If you can’t demonstrate how you are going to manage the return (that includes producing it) then you simply wont attract an investor.
