Location
Choose a city closest to you.
Silicon Valley Spring 2013
Applications: Mar 17, '13
Sessions: Apr 01, '13 - Jul 09, '13
Vision
Our vision is to Globalize Silicon Valley by creating and fostering local startup ecosystems in promising markets across the globe. We aim to help launch 1,000 technology companies per year in over 50 cities worldwide.
Sponsors
Wilson Sonsini Goodrich & Rosati is the premier legal advisor to technology and growth enterprises worldwide, as well as the investment banks and venture capital firms that finance them. Over the past four decades, Wilson Sonsini Goodrich & Rosati has established its reputation by having an unmatched knowledge of its clients' industries and deep and long-standing contacts throughout the technology sector. The firm's legal expertise serves clients at all stages of growth, from venture-backed start-up companies to multibillion-dollar global enterprises. The firm's clients include some of the most recognized names in the technology, retail, life sciences, venture capital, and finance sectors. The firm has offices in Austin, Palo Alto, New York, San Diego, San Francisco, Seattle, Shanghai, and Washington, D.C.
First Republic Bank and its subsidiaries provide private banking, private business banking and the full range of wealth management services with an emphasis on exceptional relationship-based service and a solid commitment to responsiveness and action.
Ravix Group - Ravix Group Inc.provides seasoned consulting expertise to outsource the finance, human resources, and facilities functions of early-stage and middle market companies so that management can focus on their priorities to increase the value of their company.
Purplepatch Services is a strategy consulting firm offering technology firms Marketing Communications and User Experience Design solutions.
5 Ways to Scare Off a #Startup Investor Panel
Jonathan Greechan is a Partner with the Founder Institute, and Producer of the Founder Showcase. You can follow him on Twitter @jonnystartup.
At the Founder Showcase we’ve seen nearly 1,000 early-stage companies compete in our pitch competition, with over 100 finalists pitching on stage to our investor panel. And while generally most of our contestants knock it out of the park, there are definitely rookie mistakes being made all the time that ulimately scare off our Investor Judging Panel, resulting in low scores.
With a bit of Halloween spirit and the 12th Founder Showcase coming up in just one week, below I’ve listed the most common ways our presenters have scared off the investor judging panel with their pitches.
At next Wednesday's Founder Showcase in San Francisco, all attendees have a chance to pitch hundreds of investors and press onstage through the new CrowdPitch Competition. The event will also feature David Sacks (Yammer) and Justin Moore (Axcient) as Keynote Speakers. Get your tickets before they sell out at http://www.foundershowcase.com/tickets/.
1. Ignoring the 800 lb gorilla in the room.
There are many great pitch templates and resources out there (here is a collection of our favorites), but that doesn’t mean you can simply swap in your information and go pitch. Every business has very obvious red flags. Identify yours and dispel the doubts, so that the judges can focus on the rest of your pitch.
For example, if you are going after SMBs, then you need to address your customer acquisition strategy head on. If you are a platform, you have to convince the judges how you will get a critical mass of developers using it. Or, if your team lacks experience in your company’s industry, how will your previous experience translate, or can your lack of experience in the space actually be a benefit?
If you don’t know your red flags, then you need to pitch others and get feedback, because they are definitely there.
2. Delivering a “Zombie” Pitch
Investors are judging you just as much, if not more, as the business itself. In their head they are asking questions like, “What is your motivation behind doing this?,” “will you give up if things start getting dire?”, “is this more than just a business project for you?”.
So, don’t just come out and pitch your business - pitch your passion. A pitch competition stage is an opportunity for you to share your vision with a wide audience, and your energy and enthusiasm should reflect that.
“It’s important to see your passion for solving the problem, your passion for the business. At the end of the day, you’re the one who creates the value.”
- Dave McClure, Founder of 500 Startups, at the 9th Founder Showcase
3. Not providing post-funding milestones.
When you were 12 you wouldn’t ask your mother for a dollar without telling her what is was for. So, why would you ask investors for millions without telling them the business milestones their money will be used to achieve? Make sure you outline the specific business milestones your company plans to acheive with the money - general answers like “hiring engineers”, “scaling our platform”, or “12 months of runway” are not sufficient.
“I don’t care what’s going to last for 12 months. That would be like answering ‘How much gas do you need?’ by saying ‘I need enough gas for about 12 hours of driving’. Who cares about 12 hours of driving? Where are you going, and how much fuel do you need to get there?"
- George Zachary, Partner at Charles River Ventures, at the 7th Founder Showcase
4. Giving B.S. Answers to Follow-Up Questions
Too often we see presenters circumvent questions from the judging panel. Instead of giving direct answers, they deliver long, rambling diatribes of company vision and buzzword bingo. In short, complete B.S.
Everyone knows that startups are all about learning - if you don't know something, just say so! But, also explain what you think the answer might be, and how your company in particular can figure it out.
“Since you know your space, you know your user, and you know why your problem is important to solve – you have nothing to fear! I got asked a couple questions I didn’t have answers to and just said, “I don’t know. But I think this is how we’ll find out.” Don’t try to BS your way out of questions. It probably won’t work, and if you do know your stuff, you don’t need to!”
- Nilay Patel, Co-Founder & CEO of Selligy and 11th Showcase Champion
5. Not showing enough product.
This is by far the most common way we’ve seen presenters scare off investors. It seems obvious enough, but still too many companies focus on defining the customer problem, leaving not nearly enough time on the solution.
If you don’t have enough product to show, then you are simply not ready.
So, you ask, how do you do the opposite of scaring off an investor panel? Practice always makes perfect, but for starters, watch the videos of our event winners for tips, read this article from our last champion, or check out this list of our favorite resources.
Hope to see you at next week’s Founder Showcase!
