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Mount A Winning Venture Capital Pitch Marketing Article (Article Sample)



Mount A Winning Venture Capital Pitch
Other than having a good idea at a strategic time and environment, raising capital for a business venture is by far one of the most outstanding hurdles in setting up a successful business. So frustrating is this undertaking that most good ideas burn out from frustration resulting from inadequate capital, making access to capital the main difference between success and failure for budding entrepreneurs. In this respect, pitching is fast becoming a widely considerable approach to entrepreneurs as a way to acquire start-up and growth capital as well as build powerful partnerships that propel their ideas and businesses to new heights and tap into their full potential. Venture capitalists and angel investors locally and around the world consider Kenya a prime hub for investment.
It is, however, important to note that most pitching initiatives end in failure for potential entrepreneurs. This is not attributed to any shortage of brilliant ideas worth investing in or even limited funds from investors. It results from the inability of entrepreneurs to communicate their ideas and situational environment in a way that leaves little to no doubt in the minds of VCs as to the realistic feasibility of the idea and soundness of making an investment. So what exactly are venture capitalists and investors looking for during a pitch, and how can an entrepreneur tailor the pitching process to communicate in a way that persuades and compels the VC to invest?
What a VC is looking out for is a partner. You must depict impeccable integrity and be forthcoming on all aspects of your idea and situational context. Show unwavering passion and confidence in your idea and this is only achievable by understanding all the intricacies that pertain to the idea. Your investors are more likely to show an interest in your idea if they can see the passion flow within you, to begin with. It is the only way you demonstrate you will do all it takes to succeed, and they won't lose money. The other quality you must demonstrate is a degree of experience in your field and an understanding of the dynamics of your idea or product in the complex and competitive market. Point out other ventures you have succeeded in and validate your request for funding with entrepreneurial steel and spirit from experience. Just let your potential financier understand that you have the skill, commitment and leadership acumen to start and keep the business going.
One of the most forgotten items during a pitch is a clear outline of how the financier will be making money. It is the primary interest for the investment, to begin with, and must come out in convincing detail. Give a clear vision of where you see the company in the short and long term and provide an indication of anticipation on how changes in the marketplace are likely to shape your idea and product. Demonstrate your ability to learn from the investing expertise and experience of your potential investor and how a partnership with your VC would be of mutual benefit not just in this single venture but also in other areas as a result of this investment.
Cement all your claims with solid proof and make yourself easy to understand and believe by sustaining the tempo of the engagement in an upward trajectory all through from start to finish. While a pitch should ordinarily take around half an hour, it should be ideal that you make your case in half of that time in a direct and strategic manner when the attention of your VC is at its peak.
Be transactional and interactive in your communication. Don't let your misplaced sense of grandeur and overconfidence in your idea and abilities make you talk down to a prospective partner just as it is important never to cower down and let the VC talk down at you. Emotional appeal is only sensible as a negotiating tactic and to make a point in an intimate and personal way but never expect a seasoned investor to invest based on pity. It is, therefore, imperative that you concentrate on the substance and the environment that your interaction creates during pitching. Content and impression will only come out if you focus the attention of the VC on yourself and not the distractions that aid your presentation. Consequently, visual aids and other modes of presentations must be kept to a minimum and used sparingly.
As an integral part of most pitching initiatives, slides should be as few as possible and only contain information that complements your presentation and not substitute or regurgitate what you are saying. The information on a slide should be very brief, so your audience doesn't spend time reading it at the expense of listening to you make your case. Keep only small summaries of important points on the slides and let them be ones that are best accentuated by such vivid display. Some of the few points to be included in slides in brief non-distractive bullet forms and simple illustrations are the company logo, a summary overview of the business, the company management structure as well as the management team, describe your market- its size and demographic composition, your competitive edge, your competition, your market approach, your market share growth potential etc. Furt...
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