Getting funded by a large VC is the goal of every startup business. Every founder is confident with his idea and strongly believes that he will win the attention from the investors/VCs. The real thing is that they are often blinded from the love for their idea. They forgot to expand even in the idea-phase and they are still keeping their focus on tiny markets. You should avoid these mistakes when pitching to VCs because no one will be interested in product or service if it’s not promising huge impact on the market!
If you want to close the first round of funding you should avoid these mistakes when pitching to VCs. Of course, you should make the changes in your papers, forecasts, de-localize the product/service because just avoiding them verbally won’t help!
If you are not solving a real problem, you are busted! Be careful and choose the correct field of your business, because nobody will invest in a company that will make something that is already on the market. You need to find something that is not on the market and customers will be willing to pay for it.
Targeting tiny markets? Forget about it! You need to think big when you decide to make a startup business, targeting small markets means small money, and big VCs don’t like that and it is obvious that they will turn down the offer.
No technical talent? Start looking for your tech co-founder! If you want to hit the market with mobile apps, but there is no programmer in the team, better don’t think about the big VCs. You need to have some technical background to support the development of the products.
Underestimating the competition. Never ever do that! This addresses to the “me-too” business. Don’t try to make the copy of Facebook or Google. Be creative and hit the market with something different and unique.
Overestimating your product. Your product is excellent, but don’t go too far! A product must be better by 10x than the already existing product, in order to make a bunch of money. So calculate, if it is not so good don’t even bother to send offers to the VCs.
Relying on top-down analysis. Don’t rely on the top-down analysis, better start with the zero point and explain how the product will make millions in the future.
Lack of passion. Only if you are passionate about your product/service you will close the investors! VCs are more investing in people, because people make things happen, and if you are one confused and concerned all time guy, think about making changes.
You should work and plan wisely! On that way you can avoid these mistakes when pitching to VCs, and only then you will succeed big!