Take your choice (these are both real, honest-to-God pitches, and I’ve got the originals in my possession):
CluelessCo is an internet startup company seeking $2 million of equity financing to fund our company for at least one year. CluelessCo will become the main consumer outlet for the internet, digital cable and satellite TV, and cell phones and PDAs. Read more
The most useful meetings with an investor are ones where going in everyone understands that there may actually be a rational reason for the investor to be interested. So even if my own mother asked me to meet with you, and you were pitching me a biotech opportunity for a $10 million investment at a $90 million valuation, I might take the meeting, but it wouldn’t be particularly useful for either of us. Read more
How will you make money (and no, advertising is not the answer)?
Who, specifically, is your first customer? Second? Third?
What is your contingency plan for when this seed round is exhausted, and you are unable to raise any more?
What is your API/platform/partnership strategy?
How are you going to sell the company, and to whom, within six years?
I’ve written on this topic previously, including David S. Rose’s answer to Startups: What is the worst startup pitch ever?. While I’ve never laughed outright during a pitch, I’ve certainly had quite a few occasions where I had to work hard not to wince. The problems with bad pitches tend to fall into the following major categories: Read more
Marketing strategy actually is quite important to most investors. The bottom line is that if no one shows up to buy or use your product, it doesn’t matter one whit how cool or great or innovative it is. And investors do not like top-down projections (“we’ll get a 10% market share…”). They very much want to see how you are going to get your first customer, and your second, and your third.
*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *
Unfortunately, VCs do not typically review business plans. Instead they look at a brief summary, and then decide if they want to invite you in for a meeting. Read more