Secrets to a Successful Pitch: A VC’s PerspectiveRebecca Lynn, Principal at Morgenthaler VenturesMarch 1, 2010
What is it like out there?Dollars into Venture by Quarter ($M)Number of Venture Deals by QuarterVenture Firms are investing…
Momentum is improving, but the average deal size is smaller.
28+ Series A deals within 50 miles of SF since September (Source: Crunchbase)
MANY more seed and angel rounds
Active angel environment right now2

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Secrets to Pitching to VCs

  • 1. Secrets to a Successful Pitch: A VC’s PerspectiveRebecca Lynn, Principal at Morgenthaler VenturesMarch 1, 2010
  • 2. What is it like out there?Dollars into Venture by Quarter ($M)Number of Venture Deals by QuarterVenture Firms are investing…
  • 3. Momentum is improving, but the average deal size is smaller.
  • 4. 28+ Series A deals within 50 miles of SF since September (Source: Crunchbase)
  • 5. MANY more seed and angel rounds
  • 7. Step 1:Target the Appropriate Angel or VCVenture Firm or angel? Depends upon your stage and round sizeAngelsAmount: Typically $25K to $1.5MStage: very early, but will want to see proof of conceptVenture FirmsAmount: Typically $3-$5M Stage: when there is a significant level of tractionWHO should you target? Do your homework.Ensure the firm is currently investingSee if they currently interested in your spaceResearch which partner at the firm you should target3
  • 8. Step 2: Getting a meetingIntroductionSending in a “cold” email is very unlikely to get a responseHave someone introduce you if at all possible. People in companies they invested in, people they know, other investorsMeet them where they areConferences, events, where they hang outMaterialBrief summary in the email Executive Summary (1 page)PowerPoint presentation4
  • 9. Step 3: Pitching You StartupInvestors look for:Truly disruptive technology or approachTeam that can executeTAM that is $1B +TractionTiming that is right for the market
  • 10. The Presentation ItselfWhat do you do? What customer pain do you address?Who is on your team? How are they relevant? Who is missing?Introduce the product and the benefitsHow big is your market? Why is the market ready now?What is your go to market strategy?Where are you now? How much traction do you have?How do you get big? What is your vision? What is the competitive landscape?Believable financials with key assumptionsThe Ask – how much do you want and where will it take you?Appendix: Anything you think will come up in questions6