What do most start-ups use when they present to VCs
Reader Question:
What do most start-ups use when they present to VCs when they need to show more than a Powerpoint presentation - and would it help a start-up's chances if they had a working prototype or simulation?
Evan's Answer:
There are typically two opportunities that startups will have to present in person to venture capitalists. The first is through venture fairs. Each fair has its own format but essentially the entrepreneur will have an allocated amount of time to present the "elevator pitch" and give enough information to convince the investors to set up a meeting with you. A PowerPoint presentation here is typically very useful as it allows you to reinforce the points you're talking to and give the VCs something to take away if you print off copies. Due to time restrictions, it is usually not worth going into a prototype demonstration or simulation as the VC wants to see the big picture of how you are going to succeed before getting into the details of how your product or service works. They want a high level overview of your entire business (management team, use of funds, marketing plan, etc) of which your product is only one element. You want to give them a taste of each component and follow up in more detail at the face to face meeting. That being said, there are always exceptions. If you have a product that speaks for itself and a demonstration that will blow people away, use it!
At the face to face meeting with the VC, they have already read your business plan and related materials. They now want to get to know you a little bit better and ask clarifying questions. Here you do not want to get into a long PowerPoint presentation as they already know the basic plan for your business. You should give a very quick 2 minute summary and update them on any new developments that have occurred since they read the plan (new client, R&D breakthrough made, media coverage, Board of Director appointed, etc.)
At this meeting you are bound to get questions about your product or service and how it works. You should definitely come prepared with a prototype or simulation in addition to support materials such as patents and customer testimonials. Make sure it is clear, impactful and to the point - VCs don't have a lot of time to waste and are looking for reasons to say no. If they can't get their head around what you're selling then they won't spend the time trying - they will invest in another company.
Do you have a question? Email me by filling out the form on the right hand side of this page near the bottom.
What do most start-ups use when they present to VCs when they need to show more than a Powerpoint presentation - and would it help a start-up's chances if they had a working prototype or simulation?
Evan's Answer:
There are typically two opportunities that startups will have to present in person to venture capitalists. The first is through venture fairs. Each fair has its own format but essentially the entrepreneur will have an allocated amount of time to present the "elevator pitch" and give enough information to convince the investors to set up a meeting with you. A PowerPoint presentation here is typically very useful as it allows you to reinforce the points you're talking to and give the VCs something to take away if you print off copies. Due to time restrictions, it is usually not worth going into a prototype demonstration or simulation as the VC wants to see the big picture of how you are going to succeed before getting into the details of how your product or service works. They want a high level overview of your entire business (management team, use of funds, marketing plan, etc) of which your product is only one element. You want to give them a taste of each component and follow up in more detail at the face to face meeting. That being said, there are always exceptions. If you have a product that speaks for itself and a demonstration that will blow people away, use it!
At the face to face meeting with the VC, they have already read your business plan and related materials. They now want to get to know you a little bit better and ask clarifying questions. Here you do not want to get into a long PowerPoint presentation as they already know the basic plan for your business. You should give a very quick 2 minute summary and update them on any new developments that have occurred since they read the plan (new client, R&D breakthrough made, media coverage, Board of Director appointed, etc.)
At this meeting you are bound to get questions about your product or service and how it works. You should definitely come prepared with a prototype or simulation in addition to support materials such as patents and customer testimonials. Make sure it is clear, impactful and to the point - VCs don't have a lot of time to waste and are looking for reasons to say no. If they can't get their head around what you're selling then they won't spend the time trying - they will invest in another company.
Do you have a question? Email me by filling out the form on the right hand side of this page near the bottom.
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For more information, visit www.EvanCarmichael.com. |
1 Comments:
I work for a company called iRise. We sell a solution that lets business users create a visual prototype - before coding begins. Historically, we have sold our solution to large IT shops and System Integrators - but we are test-marketing a way to penetrate the VC and Start-up market.
We are looking for qualified start-up companies to work with us as we do some test-marketing as described below:
START-UP MESSAGING AND APPROACH - Essentially, our messaging to start-ups, either pre-funding or post-funding, can be boiled down into the following points.
iRise simulations offer Start-ups a better way to:
- prototype software applications, increase collaboration
- gather feedback and iterate faster
- define and visualize software requirements
- manage product management process
- control off-shore and contracted development
We are testing an preliminary approach to the start-up market that will provide start-up ventures with a trial license to use our software after they sign up for a paid training and mentoring consulting engagement - and agree to participate in PR/Marketing activities. Upon funding, the start-up has the option to convert the trial license to a permanent license. Our expectation is that after getting funded, our solution will be used by the start-up to manage their product management process and control the development and coding of their application.
Please contact me at thumbarger@irise.com for more information.
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