What VCs Are Looking for in a Pitch

From a VC who has been in the industry for over 17 years and before worked with Steve Jobs directly for more than 10 years.

The only thing VCs are looking for in a pitch is a good investment.

VCs don’t fund great ideas or great teams or great tech.

In the first place: VCs fund great investments.

I just completed a pitching class with Ronald Weissmann at Stanford and I have never left a room more mind-blown.

The most interesting thing: not once did he talk about how you should design your powerpoint slides.

It doesn’t matter.

He opened our eyes to the fact that most founders pitching VCs have no clue about what the investor is interested in.

Here are three facts to keep in mind:

  • VCs raise most of their fund from pension funds and other institutions and need to justify every single investment to their respective investors (LPs)
  • VCs NEED to make 5–10x return on their investments to keep their job, which means they need you to exit or go public within the next 5 years or so
  • VCs only spend about 15% of their time listening to startup pitches. The rest is making sure their existing investments become successful.

So try to look at your pitch from an investor’s standpoint.

The number one thing they need to hear is why your business will be a great investment for them.

If you have any doubts about the fact that it will, then there’s not even a point in perfecting your pitch.

Learn what the VC you are pitching is interested in.

Research deals they have done in the past.

So if you really want to blow a VC away: don’t spend your time on creating a beautiful pitch deck.

Spend all your time on creating an investable business.

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