What VCs Want to Know About Your Startup

What VCs Want to Know About Your Startup

September 2, 2021 by investor

Investors look for certain things in the pitch to decide whether or not to pursue.

In pitching VCs, make sure you cover the following points:

Say what your company does in 10 words or less.

This provides context so the investor knows how to understand the rest of the pitch.

Show how your team is great.  

Give examples demonstrating how sharp they are, how fast they execute, and how they learn from mistakes.

Mention the size of the market and include not only the total available market and serviceable market but also the beachhead market.

The beachhead market is the first 20 customers you will pursue.

This shows you know where you are going to start with your go-to-market plans.

Discuss the monetization model.

If you have recurring revenue, highlight that aspect as that will appeal to them the most. 

Show recent milestones accomplished such as a product launched, or a customer closed.

Discuss current traction.

Forecasts must rest on top of historical numbers.

Investors will look for where you are today in order to understand your forecast.

Show how much funding you have so far.

Have one fundraise target, not several, as investors can’t manage multiple scenarios in the initial meeting.

Know what you are going to accomplish with the fundraise. 

Again, focus on clear milestones and avoid multiple scenarios.

In the end, it’s one team, one product, one business model, one fundraise, and one outcome. 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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Copyright (c) 2021, Hall Martin and investorconnect.org. All rights reserved.

Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.