On the flip side, VCs should also strive for a flawless pitch interaction.
A big shout-out to Steve Procter for writing the 17 ways that an investor could make a pitch meeting FLOP… 👇
👉 Not doing their homework. Investors should be familiar with the startup’s space and have some grasp on the problem the startup is trying to solve
👉 Interrupting the pitch. Investors should allow the founders to finish their thoughts and presentations before asking questions
👉 Unreasonable deadlines or demands. Pressuring founders to rush decisions or make unnecessary commitments can breed resentment
👉 Poor communication or follow-up. This is a two-way street. Investors should also be prompt in providing feedback or further steps
👉 Being overly aggressive on confidential information. Yes, due diligence is essential, but respecting the founders’ need to protect their IP is equally important
👉 Not clarifying their questions. Investors should make sure they’re asking clear, concise questions and make sure they get the answers they need
👉 Low enthusiasm or interest. Just as founders should show passion, so should investors. A lack of interest can lead to a lack of motivation on the founders’ side
👉 Taking over the conversation. Allow the founders to lead the pitch meeting. They know their business best
👉 Not introducing themselves properly. Founders want to know who they’re dealing with too. Investors should share their backgrounds, focus areas, and investment thesis
👉 Not recognizing founders’ stress signals. Pitching can be stressful. An investor should aim to create a comfortable environment for discussion
👉 Complicated investment terms. Keeping the deal terms straightforward makes it easier for founders to decide
👉 Being too passive. Founders appreciate investors who show interest and engage proactively
👉 Not providing feedback at the end. Even if they’re not interested in investing, constructive feedback is always valuable for founders
👉 Not understanding the startup’s business. If the investor shows a lack of understanding of the business, it could lead to miscommunication and missed opportunities
👉 Incomplete or messy due diligence process. Having a clear, organized due diligence process shows respect for the founders’ time and work
👉 Not open to founders’ perspectives. A good investor acknowledges that founders might have unique insights about their industry and market
👉 Overloading the first meeting with too many topics. The first meeting is a get-to-know-each-other opportunity. Investors should prioritize understanding the founders and their vision over deep diving into every detail
Lord knows I need to grow in a few of these – thank you again, Steve! 🤗
