Innovation Forum "Kyiv City Open Doors"

1. Pitching to Angels and VCs

2. Approaching Investor
 Best way to get in is through
entrepreneurs’ reference
 Investors trust people they’ve
backed in the past
 Usually know within 10 minutes
 Prefer founding CEO and with a
team of founders
 Don’t approach VCs that are
funding competitors
 Angels are ok – often invest in
several companies within the same
industry

3. Approaching Investor
Don’t expect a “Yes” after the
first meeting
Build a relationship with the investor
 Don’t send a long email / business plan
 If you have no reference, it will take a
month of interactions (in-person and
email)
 The more time you spend with an
investor, the more likely he is to invest in
you
 The goal of each meeting is to get the
next meeting
 Be patient

4. Before the Pitch
 Skip the associates and go straight to partner level
 Don’t ask investors to sign NDA
 Learn the VC language – KPI, business models, term
sheet language
 Create your pitch deck
 Practice your pitch in front of peers and other
entrepreneurs
 Be confident not arrogant

5. Creating the Pitch Deck
 Use simple bullet lists
 45 min presentation, 15 min Q&A
 Show a demo
 Iterate after every pitch

6. Standard Pitch Structure
1. Problem 5. Team
2. Solution/Demo 6. Competition
3. Market Size 7. Business Model
4. Traction
8. Funding

7. Logistics
 Don’t be late; arrive early to setup
 Bring equipment and backups (cables, adapters, USB drive, etc.)
 Don’t show up alone; bring 1-2 team members
 Give each person a role; investors want to see good teamwork

8. During the Pitch
These are the factors investors look for:
 Traction
 Team
 Social Proof (who else is investing?)
 Product
 Market
 Many entrepreneurs fail to highlight the team
 Investors prefer an A team with a C idea, over a C
team with an A idea

9. During the Pitch
 Entrepreneurs often forget to fully discuss the
problem and skip straight to the solution
 If you have a clear problem, it is possible to pivot if
your solution fails
 If you only have a solution, the entire company falls
apart

10. During the Pitch
 Don’t go overboard on numbers and projections
 Don’t hide or downplay the competition
 Emphasize what makes you better or unique
 Don’t be too attached to your business plan; show
that you are open to new opportunities

11. Demo
 Don’t show up without a demo or
mockup
 Don’t be afraid of running
overtime on the demo especially if
the investor shows interest
 Don’t point out problems/bugs in
your demo, just move on
 Most importantly, be passionate
about your product

12. Valuation
Valuation is not a science, based on supply-and-demand
in current market
 Your company is worth as much as you can convince
investors its worth, be ready to justify your price

13. Q&A
 Take notes during the meeting
 Don’t mention which investors have rejected you
 Don’t dodge questions, answer directly and honestly
 Investors will only invest in people they can trust

14. After the Meeting
 Send “Thank You” email on the same day
 Prepare for rejection