Guide for Pitching to Venture Capitalists

Venture capitalists are private financing firms that help startups and entrepreneurs to grow by giving them finance for their ventures. If you are an entrepreneur or a small scale business that is looking for funding from venture capitalists, you need to make sure that you have got the pitching right. The guide that will make things easier includes the following.

Do Research

The first step is to do research on the different kinds of venture capitalists that are within your region. You should look at the sort of projects they have funded, how long it takes before they support, and some of the requirements that may be needed from the people they potentially fund. Do as much research as possible so that when you approach a panel or the responsible people to do your pitch, you can comfortably answer the questions they ask you without getting overwhelmed.

Have a Solid Draft Proposal

When you pitch to a venture capitalist, you can be sure that they will ask you for a proposal. The proposal should detail things like the kind of business that you do, what makes your business different, how much funding you need, what you will use the funding for, among other details. Have a detailed yet simple draft proposal that summarises the kind of business venture you are pursuing. Also, one where the venture capitalist firms get a clear idea of where they will fit in when they offer to come in to fund the business.

Be Transparent

The first rule during pitching is that you be transparent so that when the venture capitalist firm starts doing their research about you and your business, they do not find gaps that make them question your honesty. You will be asked about your credit score, target audience, motivation for business, among other things. Resist the temptation to lie, thinking that your honesty could jeopardize chances of you getting the funding.