• How-to

When I once asked an entrepreneur, who had raised money successfully over three rounds, what was the perfect way to make a pitch to a VC, he gave me a brutally honest answer that said a lot—it is the way that gets you the money.

In short, what I am trying to say here is that no one pitch works for all and going with a patterned approach is probably not going to work here. What is going to work, however, is adaptability and a few do’s and don’ts.

Yes, you still need PowerPoint
Or Keynote for that matter. If a VC shows interest and responds to you, you will be called in to showcase what you have to offer her/him. And there is no tool more accepted for showcasing ideas than the presentation. I hope you’ve followed the article published in the March issue and have kept it handy.

Guy Kawasaki’s Rule of Thumb
The seasoned entrepreneur and mentor came up with a great rule that more or less defines how your presentation should go. Kawasaki talks about how 10 is the optimal number of slides in a presentation, because a normal human being cannot comprehend more than 10 concepts in a meeting. If it takes more than 10 slides to explain and present your business, you probably don’t have a business at all.

Watch the clock
Your presentation should never be longer than 20 minutes. Why? Ideally, no VC will give you a meeting slot which will last more than an hour. The 10 slides should take you no longer than two minutes each. This should leave you with 40 minutes for the rest of the deliberations on your pitch. You really want to get started talking more about your deal right there and then. The VCs who are sitting in second meetings would likely be less awed by your business than those ones who sat in on the presentation.

The meat in your sheet
That your presentation should cover the following bases—the problem, the solution, the business model, the product, the marketing and sales strategy etc—is well-known and previously documented. How much of what should go in those 10 slides is your call. But what you should always mention in and after your presentation, in detail, is who your customers are. If you already have some, mention them as clearly as possible. That is the juiciest part of your pie.

Do not drop names
In the presentations and discussions later, do not name-drop the number of advisors you have or the other VCs you are talking to. Instead, talk more about your co-founders and why you guys make such a great team. It shows self-confidence in your business and not borrowed confidence from other sources.

Be aware. Adapt. Advance.
In your discussions with the VC after your presentation, you must understand that what and how you further your story will vary from person to person. So while a casual demeanor will work with one, a very respectful and serious one might work with the next. Understanding body language and modifying yours to that of the VC is important. Think of it as a date. You are courting the VC. Lack of table manners can upset the cart and not get you a second date with that VC.

This is the fourth of a multi-part series.

©Entrepreneur May 2010

Tags:
funding, VC, venture capital