If you are the founder of a tech startup, it’s likely that at some point you will need to pitch a venture capital firm to raise money. Here are a few simple tips from Brady Bohrmann of Avalon Ventures to help you prepare for and improve your pitch to venture capitalists.

1. How to Improve Your
Venture Capital Pitch
in 5 Ways
by Brady Bohrmann,
Partner at Avalon Ventures

2. About Brady Bohrmann
Brady has over 20 years of experience as a venture capitalist and
operating executive in both information technology and biotech. His
focus is on early-stage investments and backing talented entrepreneurs.
Throughout his venture capital career, he has worked with over 75
companies. He currently is a director or observer of many Avalon
portfolio companies, including Backupify, Chart.io, Cloudant, Inc., Conjur,
Indix, Juliet Marine Systems, Kaltura, Kinvey, Memrise, Nanigans, Pingup,
Redbooth, Selectable Media, Simulmedia, The Happy Cloud, Twinstrata
and Vook.

3. If you are the founder of a tech startup, it’s likely that
at some point you will need to pitch a venture capital
firm to raise money.

4. I’ve seen a wide array of pitches over the years,
ranging from the downright bad to outstandingly
good
Here are a few simple tips to help you prepare for
and improve your pitch to venture capitalists:

5. 1. Do Your Homework
Learn as much as possible about
a VC before you pitch to them.

6. Do Your Homework
When done right, you will have:
• Secured a warm introduction
• Evaluated their portfolio for stage and fit
• Loosely determined whether your startup is the right match for
the firm.
That is to say, don’t waste time qualifying the firm during your
meeting -- do that all ahead of time and use the meeting to tell
your story.

7. 2. Don’t Confuse Courtesy
With True Interest
Many VCs will take meetings with
founders solely as a courtesy to a
colleague or to learn more about
a particular market.

8. Don’t Confuse Courtesy With
True Interest
VCs are experts at saying a soft
“no”, so your responsibility is to
carefully read between the lines.

9. Don’t Confuse Courtesy With
True Interest
Often I speak with entrepreneurs who thought they hit
their pitch out of the park, only to learn that the fund
had no real intention of investing.
Approach your first meeting as an opportunity to
educate and excite the partner, and to secure a time
for follow-up.

10. 3. Don’t Ask for Advice on
Strategy
Never ask (or expect) a VC to
advise you on strategy or help to
flesh out your business plan during
your pitch. A pitch meeting is never
the right time or place for that.

11. Don’t Ask for Advice on
Strategy
The sole purpose of this
meeting is for the VC to evaluate
you and determine whether you
have a strong business strategy
and the ability to execute on it.

12. an example:
I recommend avoiding open-ended questions such
as, “Do you agree with our approach” or, “What would
you suggest we do?”
Instead, speak confidently and demonstrate your
intelligent perspective on the company and market.
This is certainly not the time to be wishy-washy.

13. 4. Don’t Use Buzzwords
Entrepreneurs feel compelled to
use industry terms in their
presentations.

14. an example:
I’ve seen many presentations become completely
incomprehensible because they were loaded with
buzzwords, such as, “Our (insert product/service) is
highly disruptive and represents out-of-the-box
thinking and a paradigm shift in the massively
growing (insert sector) marketplace.”
That’s a lot of big words that essentially mean
nothing.

15. Don’t Use Buzzwords
Cut out the jargon and instead
explain what you do like you
would to a friend who wasn’t in
the industry.

16. an example:
One of my biggest annoyances is the standard
presentation format, which most accelerators use on
demo day. Because they all look the same, they lose
their edge and uniqueness that drives life into a story.

17. Don’t Use Buzzwords
When crafting your pitch, tell your story in a way that is:
• Simple
• Direct
• With as little slides as possible
• Make it personal
Successful entrepreneurs are great storytellers. You
too have a story, so tell it.

18. 4. Don’t Expect an
Immediate Answer
A common mistake entrepreneurs
make is to try to close too fast.

19. Don’t Expect an Immediate
Answer
If the answer is no, the VC has already determined
that in the first few critical minutes of the meeting.
If that is the case, you can expect (and deserve) a
quick answer.

20. Don’t Expect an Immediate
Answer
It is important to keep in mind that VCs
say “no” to 95% or more of the deals
they see, and do so for a variety of
reasons -- related and unrelated to your
company.
In most cases, getting to the “yes” is
much more complicated.

21. Don’t Expect an Immediate
Answer
Getting a “yes” requires:
• Checking for conflicts in investments
• Gaining partner support
• Defining the terms of the investment
• Consulting with trusted advisors
• Completing due diligence on you, the company, and the market
• And many other steps

22. Don’t Expect an Immediate
Answer
Similar to a job offer, if you have
other options on the table, it’s
recommended to be upfront about
it, but also careful not to overplay
your hand.

23. Don’t Expect an Immediate
Answer
• A quick “no” is a good thing. It allows you to move
onto the next opportunity quickly.
• Don’t be discouraged if it takes five, 10, or 25
meetings before you get a “yes”. This is very
normal. You may only need one “yes”.
• If you truly believe in your idea, don’t be
discouraged when you get a “no”.
• Keep at it!

24. Final Pieces of Advice
• Most big ideas are not obvious from the start and don’t fit into
an elevator pitch or episode of Shark Tank.
• It takes time to develop your vision and convince a VC that
you and your team are well positioned to execute.
• Great companies often look like bad ideas at the beginning
and many “hot” investments that VCs compete for a piece of
don’t even end up working out.
• Just because VCs aren’t lined up outside your door now
doesn’t mean your idea isn't good.

25. The Takeaway
• Have passion for your idea
• It’s worth talking to as many VCs as
you need to before someone “gets
it.”
• If you use these meetings wisely and
persevere even when you get a few
“no’s”, you will be well on your way
to success.

26. Learn more!
Visit http://avalon-ventures.com/blog for more actionable advice
on early stage startups, VC funding and other entrepreneurial tips.