Oct 31, 2013 What I Wish I Knew Before Pitching LinkedIn to VCs
The legendary Reid Hoffman (co-founder of LinkedIn) recently posted a piece on how to properly pitch a Venture Capital for funding, and the common myths behind pitch decks. Google “how to pitch a VC” and you’ll get hundreds of links to choose from but what you’ll quickly notice is that everyone has their own take on what is deemed as the “best pitch.” That’s not to say that anyone is more right than another, especially when you compare folks at the experienced pitching level, but there are some standardized pointers that just… make sense, and this is what Reid touches upon.
I’ve listed the bullet points below, but click here for the full article. Reid also posted to his personal website LinkedIn’s Series B deck and provides some great insights on each of the relevant slides.
1. MYTH: The startup financing process is about one thing — money.
TRUTH: A successful financing process results in a partnership that delivers benefits beyond just money.
2. MYTH: If your team is strong, show the team slide early in your pitch.
TRUTH: Open your pitch with the investment thesis.
3. MYTH: All investment pitches have the same structure.
TRUTH: Decide whether your pitch is a data pitch or a concept pitch.
4. MYTH: Avoid bringing up anything that might paint your business as risky and decrease investors’ confidence.
TRUTH: Identify and steer into your risk factors.
5. MYTH: Arguing that you have no prospective competitors is a strength.
TRUTH: Acknowledge all types of competition and express your competitive advantage.
6. MYTH: Don’t compare yourself to other companies because you think you’re unique.
TRUTH: Pitch by analogy.
7. MYTH: Focus on today’s pitch. The future will take care of itself.
TRUTH: Think also about the round after the one you’re currently raising.