Tools
Be ready, whenever, wherever
While the name “elevator pitch” may be slightly antiquated, it still is a good metaphor for what a very short and successful pitch is about. You want to always be ready to bring across your message within the time it takes you to ride from one floor to another in an elevator. You may have 30 seconds, two minutes, or 5 minutes available to make your pitch at a networking event, a startup conference, or just while waiting for the bus. In each situation you want the most important pieces of information about you and your startup to get ingrained in the memory of whoever you are talking to.
A presentation is not a handout
A presentation depends on your help to walk your audience through the bits of information you put on your slides. Presentation technique is equally important as how you structure and design your slides, including how many words, charts, and other illustrations you put on them. However, the star of the show is you, not your slides. They serve as a backdrop to explain your idea, tell your story, and set tone and emotion you want your audience to experience. Less is more. Reduced to the max should be your mindset for your presentation.
Lay it all out
A handout includes all the relevant information you want someone to know about your company. Professional investors, in particular venture capitalists, often don’t have the time to go through a detailed handout. However, you want to be prepared in case any interested party is interested to read in more detail about you and your startup. Think carefully about how you want to structure the deck and what information is pertinent to make your case to investors, partners, or customers. A handout allows the reader to get a more complete picture of your startup without having to rely on you presenting and explaining the information.
Stand out from the crowd
To win and spur interest in potential investors and partners you need to deliver a presentation and speech that stands out and leaves a lasting impression. But what pitch competition should you enter and what are the advantages and disadvantages of doing so? There are different types of startup pitch competitions. They can be conference-based, regional or location-based, company-sponsored or organized by educational organizations. Most of them have certain common parameters, for example: there are eligibility restrictions to consider, they take place in a certain location and participants are expected be physically present, they are great networking opportunities where potential investors and partners, corporate executives and industry experts come together, and they reward winners and finalists with cash prizes.
One page to open doors
The one pager is basically a summary of all the work you have done on your pitch materials. It’s an executive summary, a snapshot of you and your company. You want to tease investors and make the best possible impression to get them to agree to a meeting in person. Hence, the one pager provides all the information supporting that goal in shortened form, including details about your capital round. It simplifies all the aspects of your startup and capital round round so it can be easily digested and shared with others. It can be a challenge to cut down all the information so they fit on one page, but if done right, your one pager will contribute to a successful start of your fundraising. Think about crowdfunding platforms, where entrepreneurs also have to reduce their pitch to only one online page. Some of those crowdfunding initiatives raise millions by doing so.
Seconds to impress
Photos, slide shows, gifs, they all get trumped by video. A short introductory video – also called an explainer video – with a clear and captivating message about your offering will bring your company to life, increase awareness, and increase the likelihood of converting traffic to actual demand and visitors to actual clients. Easier said than done. What’s true about making a first impression in front of an audience is also true for video. You have a mere 10-15 seconds to make a powerful and captivating entry. So if you decide to make a video, make sure it pops from the very start. As always the art of captivating and convincing your audience depends on your story-telling. Make it personal and emotional instead of rambling on about your name, title and experience. Be authentic and talk to your viewers by treating the camera like a person. Think about what you can do for your audience and put in the effort to prepare yourself accordingly.
Communication is key
Communication starts with your first contact with an investor, partner or customer, continues throughout the entire negotiation phase, and also after you closed a deal. Communication does not even stop after you were turned down. A “No” today can still turn into a “Yes” tomorrow. Follow-ups are an essential part of your communication, which in turn is crucial to manage expectations; and there are plenty of different situation in which a follow-up is needed. For example: after your first contact with an interested party, after you had a first personal meeting, after you had a quick chat at a startup event, after the outcome of your first inquiry was negative, after you didn’t receive an expected response, and of course when updating your stakeholders during the negotiation phase, and even more so after you secured the deal, be it on a regular basis or upon major developments.
Content will convert into success
Website, Mobile App, Blog, Social Media, LinkedIn, e-Commerce, Affiliate Marketing, SEO, Influencer Marketing… the list is long. But what is the right online presence for you? What should you start with, what should you tackle in sequence, what simultaneously? How important is each aspect for your business? What will you cover within your team, but should you outsource? Each digital channel has a different but at the same time also overlapping purpose: a website is a great place to give a first description of your offering and provide testimonials you have received from your clientele. In today’s mobile world your online presence on a phone or tablet is as – if not more – important as your desktop appearance. A blog helps to keep readers up to date with your accomplishments and success stories. Everyone talks about Social Media and online business networks such as LinkedIn, (almost) everyone uses them. E-Commerce is another huge topic to be considered. SEO (Search Engine Optimization), Affiliate Marketing, and Influencer Marketing are additional disciplines to consider when designing your online presence.
Have it ready
A lot of deals fail in the end not because their pitch to investors was not successful, but because the subsequent due diligence process did not back up the claims that entrepreneurs made in their presentation. Sometimes, only the due diligence process reveals major red flags or at least substantial gaps making it challenging to uphold investors’ initial support once they look at the startup in more detail.
Unfortunately, it is hard to predict how extensive an investor’s due diligence questionnaire will be. Some have quite short checklists with only a few items, other have extensive questionnaires that can be several pages long. In other words, when entering a due diligence process, be prepared to answer 200+ questions. All the more reason to be armed and ready with a comprehensive due diligence packaged before you gain traction with investors.
The sources are many
There is a multitude of potential sources of capital you can consider to get your startup off the ground. You can use what you have and what you make going forward, also called “bootstrapping”. Family and friends might be willing to help. Some say credit cards are an option – but even without knowing your situation we would go out on a limb and say: don’t do that. You can apply for a more conventional type of funding and apply for business loans. There is crowdfunding, different types of angel investors and angel groups, family offices, venture capitalists, and private equity, albeit the latter typically comes into play at later capital rounds. They all have their legitimate reasons to be considered as a source of capital. They all have pros and cons to be weighed against your unique situation, needs, and plans.
Investors, yes, but how?
As an entrepreneur, finding investors is often at the forefront of your strategic thoughts on how to get your startup off the ground. Easier said than done. You may be asking yourself how you can identify investors, how you choose the right investors, what’s the best way to contact them, what aspects do you want to see, which ones do you want to avoid in investors, how do you best align your current capital round with the objectives and focus points of your investors, how do you avoid concentration risks and conflicts of interest in your investor base, how do you establish the trust to build the strong relationships with investors that are so crucial for long-term success, what are the most common questions you should expect any professional and/or experienced investor to ask about your startup so you can be best prepared, and most importantly, how do get from first contact to winning over an investor – maybe even gaining a reputable lead investor – to receiving a check? Let’s work on those questions together.
Let's start with the basics
The Venture Capitalist (VC) is on almost every entrepreneur’s mind who is seeking funding for their startup. It is a broad topic but every founder should at least be familiar with the basics.
For example, if you want to open a mom-and-pop a VC is probably not the right target investor. VCs usually invest in startups with high ramp up costs, the potential to be scaled and grow quickly, and innovative ideas that have the potential to be disruptive of an industry or even change it completely. You can differentiate VCs by many criteria, such as in what vertical they invest, in what geographies they invest, at what level of capital rounds they typically invest, their size etc. Important note: VCs are different from Private Equity (PE) companies.
You should understand how VCs monetize their investment and what returns they expect and have an idea of who you are talking to when dealing with a VC representative. That includes knowing the different roles employees have – typically going from analysts, to associates, to principals, to partners – and what they entail. Understand how the process works within a VC’s organization. It matters how and through whom you approach a VC: multiple steps will follow a first introduction before you get to the term sheet negotiation stage which is still non-binding. Only a successful completion of the investor’s due diligence and signing and execution of final offering documents will get you the money you have been looking for.
Also regional differences in what VCs are focused on and how the process works are to be considered. For example: the New York City market is different from the Silicon Valley / Bay Area market. Or, in case you are peering across the border, European VCs have different focus areas when looking at early-stage companies than North American VCs, and so on. VCs typically would like to have a major involvement in your company by asking for a major equity stake and board representation. This way, they have a say in important decisions that affect their investment and future returns. And that’s just the basics.
Be ready, whenever, wherever
While the name “elevator pitch” may be slightly antiquated, it still is a good metaphor for what a very short and successful pitch is about. You want to always be ready to bring across your message within the time it takes you to ride from one floor to another in an elevator. You may have 30 seconds, two minutes, or 5 minutes available to make your pitch at a networking event, a startup conference, or just while waiting for the bus. In each situation you want the most important pieces of information about you and your startup to get ingrained in the memory of whoever you are talking to.
A presentation is not a handout
A presentation depends on your help to walk your audience through the bits of information you put on your slides. Presentation technique is equally important as how you structure and design your slides, including how many words, charts, and other illustrations you put on them. However, the star of the show is you, not your slides. They serve as a backdrop to explain your idea, tell your story, and set tone and emotion you want your audience to experience. Less is more. Reduced to the max should be your mindset for your presentation.
Lay it all out
A handout includes all the relevant information you want someone to know about your company. Professional investors, in particular venture capitalists, often don’t have the time to go through a detailed handout. However, you want to be prepared in case any interested party is interested to read in more detail about you and your startup. Think carefully about how you want to structure the deck and what information is pertinent to make your case to investors, partners, or customers. A handout allows the reader to get a more complete picture of your startup without having to rely on you presenting and explaining the information.
Stand out from the crowd
To win and spur interest in potential investors and partners you need to deliver a presentation and speech that stands out and leaves a lasting impression. But what pitch competition should you enter and what are the advantages and disadvantages of doing so? There are different types of startup pitch competitions. They can be conference-based, regional or location-based, company-sponsored or organized by educational organizations. Most of them have certain common parameters, for example: there are eligibility restrictions to consider, they take place in a certain location and participants are expected be physically present, they are great networking opportunities where potential investors and partners, corporate executives and industry experts come together, and they reward winners and finalists with cash prizes.
One page to open doors
The one pager is basically a summary of all the work you have done on your pitch materials. It’s an executive summary, a snapshot of you and your company. You want to tease investors and make the best possible impression to get them to agree to a meeting in person. Hence, the one pager provides all the information supporting that goal in shortened form, including details about your capital round. It simplifies all the aspects of your startup and capital round round so it can be easily digested and shared with others. It can be a challenge to cut down all the information so they fit on one page, but if done right, your one pager will contribute to a successful start of your fundraising. Think about crowdfunding platforms, where entrepreneurs also have to reduce their pitch to only one online page. Some of those crowdfunding initiatives raise millions by doing so.
Seconds to impress
Photos, slide shows, gifs, they all get trumped by video. A short introductory video – also called an explainer video – with a clear and captivating message about your offering will bring your company to life, increase awareness, and increase the likelihood of converting traffic to actual demand and visitors to actual clients. Easier said than done. What’s true about making a first impression in front of an audience is also true for video. You have a mere 10-15 seconds to make a powerful and captivating entry. So if you decide to make a video, make sure it pops from the very start. As always the art of captivating and convincing your audience depends on your story-telling. Make it personal and emotional instead of rambling on about your name, title and experience. Be authentic and talk to your viewers by treating the camera like a person. Think about what you can do for your audience and put in the effort to prepare yourself accordingly.
Communication is key
Communication starts with your first contact with an investor, partner or customer, continues throughout the entire negotiation phase, and also after you closed a deal. Communication does not even stop after you were turned down. A “No” today can still turn into a “Yes” tomorrow. Follow-ups are an essential part of your communication, which in turn is crucial to manage expectations; and there are plenty of different situation in which a follow-up is needed. For example: after your first contact with an interested party, after you had a first personal meeting, after you had a quick chat at a startup event, after the outcome of your first inquiry was negative, after you didn’t receive an expected response, and of course when updating your stakeholders during the negotiation phase, and even more so after you secured the deal, be it on a regular basis or upon major developments.
Content will convert into success
Website, Mobile App, Blog, Social Media, LinkedIn, e-Commerce, Affiliate Marketing, SEO, Influencer Marketing… the list is long. But what is the right online presence for you? What should you start with, what should you tackle in sequence, what simultaneously? How important is each aspect for your business? What will you cover within your team, but should you outsource? Each digital channel has a different but at the same time also overlapping purpose: a website is a great place to give a first description of your offering and provide testimonials you have received from your clientele. In today’s mobile world your online presence on a phone or tablet is as – if not more – important as your desktop appearance. A blog helps to keep readers up to date with your accomplishments and success stories. Everyone talks about Social Media and online business networks such as LinkedIn, (almost) everyone uses them. E-Commerce is another huge topic to be considered. SEO (Search Engine Optimization), Affiliate Marketing, and Influencer Marketing are additional disciplines to consider when designing your online presence.
Have it ready
A lot of deals fail in the end not because their pitch to investors was not successful, but because the subsequent due diligence process did not back up the claims that entrepreneurs made in their presentation. Sometimes, only the due diligence process reveals major red flags or at least substantial gaps making it challenging to uphold investors’ initial support once they look at the startup in more detail.
Unfortunately, it is hard to predict how extensive an investor’s due diligence questionnaire will be. Some have quite short checklists with only a few items, other have extensive questionnaires that can be several pages long. In other words, when entering a due diligence process, be prepared to answer 200+ questions. All the more reason to be armed and ready with a comprehensive due diligence packaged before you gain traction with investors.
The sources are many
There is a multitude of potential sources of capital you can consider to get your startup off the ground. You can use what you have and what you make going forward, also called “bootstrapping”. Family and friends might be willing to help. Some say credit cards are an option – but even without knowing your situation we would go out on a limb and say: don’t do that. You can apply for a more conventional type of funding and apply for business loans. There is crowdfunding, different types of angel investors and angel groups, family offices, venture capitalists, and private equity, albeit the latter typically comes into play at later capital rounds. They all have their legitimate reasons to be considered as a source of capital. They all have pros and cons to be weighed against your unique situation, needs, and plans.
Investors, yes, but how?
As an entrepreneur, finding investors is often at the forefront of your strategic thoughts on how to get your startup off the ground. Easier said than done. You may be asking yourself how you can identify investors, how you choose the right investors, what’s the best way to contact them, what aspects do you want to see, which ones do you want to avoid in investors, how do you best align your current capital round with the objectives and focus points of your investors, how do you avoid concentration risks and conflicts of interest in your investor base, how do you establish the trust to build the strong relationships with investors that are so crucial for long-term success, what are the most common questions you should expect any professional and/or experienced investor to ask about your startup so you can be best prepared, and most importantly, how do get from first contact to winning over an investor – maybe even gaining a reputable lead investor – to receiving a check? Let’s work on those questions together.
Let's start with the basics
The Venture Capitalist (VC) is on almost every entrepreneur’s mind who is seeking funding for their startup. It is a broad topic but every founder should at least be familiar with the basics.
For example, if you want to open a mom-and-pop a VC is probably not the right target investor. VCs usually invest in startups with high ramp up costs, the potential to be scaled and grow quickly, and innovative ideas that have the potential to be disruptive of an industry or even change it completely. You can differentiate VCs by many criteria, such as in what vertical they invest, in what geographies they invest, at what level of capital rounds they typically invest, their size etc. Important note: VCs are different from Private Equity (PE) companies.
You should understand how VCs monetize their investment and what returns they expect and have an idea of who you are talking to when dealing with a VC representative. That includes knowing the different roles employees have – typically going from analysts, to associates, to principals, to partners – and what they entail. Understand how the process works within a VC’s organization. It matters how and through whom you approach a VC: multiple steps will follow a first introduction before you get to the term sheet negotiation stage which is still non-binding. Only a successful completion of the investor’s due diligence and signing and execution of final offering documents will get you the money you have been looking for.
Also regional differences in what VCs are focused on and how the process works are to be considered. For example: the New York City market is different from the Silicon Valley / Bay Area market. Or, in case you are peering across the border, European VCs have different focus areas when looking at early-stage companies than North American VCs, and so on. VCs typically would like to have a major involvement in your company by asking for a major equity stake and board representation. This way, they have a say in important decisions that affect their investment and future returns. And that’s just the basics.