Sometimes it's worth being reminded of the basics. I recently had occasion to send a start-up client exec summary to a very prominent VC who then asked the company in for a pitch. The exec summary is strong -- strong enough to get three VCs from a major fund to attend an hour or longer meeting. Keep in mind, VCs are inundated with business plans, and these meetings are hard to get. So, you want to put your best foot forward.
Anyway, the fund took a pass and I got some feedback. The problem wasn't the plan or the market or the management's credentials; the problem was the presentation. Apparently, the pitch was disorganized. No one led the conversation. The three entrepreneurs kept interrupting each other and correcting each other. The VC's questions were dismissed as the "wrong" questions and so on. Basically, the pitch created the impression that the team was unlikely to be able to work effectively together or with others.
You must look like you have it, and in fact have it, together. You need to practice your pitch. You need to know who is talking to what slides and issues. And, it doesn't much matter what question you are asked, if it is important to the potential investor -- it is important.
In another case, I am aware of, the entrepreneur took three weeks to respond to questions raised by an investor at an initial meeting. I think it is OK not to be able to answer every question, but when you undertake to get back to a potential investor, you need to be timely. If you are not, you risk raising questions about yourself.
I feel as though I am stating the obvious, but I mentioned these pitch issues to a couple of our attorneys, and they each had a similar story. It seems as if this lack of good basics is more prevalent than one would think. If you want to practice your pitch, there are lots of people who are likely to be willing to listen and be helpful -- not the least of them being your lawyer.
