Michael Wisniewski's Blog

In my experience meeting teams and listening to pitches, I’ve noticed a few things that entrepreneurs commonly overlook or underemphasize. Because of this, I’ve come up with four areas you should focus on. While these things won’t necessarily turn your company into the next Facebook, making sure your bases are covered may increase your chances of securing venture capital.

1. Be a Student Rather than the Smartest Person in the Room
   No matter the industry, it’s beneficial to develop relationships with people who are smarter and/or more experienced than you. Even if you’re the world’s foremost authority in your field, there are people who you can learn from. This especially rings true when it comes to entrepreneurship. It’s important to get out of the lab or office and reach out to mentors, subject matter experts and potential customers. These externals can not only help validate your idea, but can also become team members or board advisors that will help you understand customer pain points, formulate strategy and structure your business model. They may even contribute funding.
   Tip: Beware of “mentor whiplash.” You’ll have several business assumptions to test along the way and you’ll receive advice from multiple perspectives. Some of the advice may be contradictory and overwhelming. You should listen to all of it, but it is your job to synthesize the information and make the call.
2. Build a Strong and Diverse Team
   Investors value a strong team just as much as they value your idea. Your team should be one of the main things you pitch to a potential investor. Are they experienced company builders with the necessary relationships? Experts in their field? Have they been there, done that? If not, it’s time to build. Where do you find these people? If you’re embracing mentorship and building relationships, the answer should be obvious: your own network. Building a team from your own network may reduce risk and increase the likelihood of success.
   Tip: Know thyself. Networking is not always a strong suit for technologists, but typically is for experienced CEOs. If your networking skills are weak, you’re going to need to either develop them or bring someone on board to do it for you. This is important not only for building your core team, but also for developing outside partnerships and collaborations. Partnerships are one of the core building blocks in a typical business model, and, if built correctly, will create value for your company.
3. Do your Homework
   If you’re fortunate enough to pitch a VC or angel, don’t blow it! Doing your homework really shows. I always appreciate when the entrepreneur knows the business and slides inside and out and is prepared for Q&A. Anticipate and research common questions that VCs ask and be ready to answer them.
   Tip: Know the investment philosophy of the VC you’re pitching to. All VC firms have distinct missions, areas of expertise and industries of interest. Know the philosophy and speak to it during your presentation. In the same vein, know how the VC typically invests. How much do they usually invest per round? Do they prefer to work with other investors? What stage do they typically invest in? Understanding these things will help form your expectations before the pitch.
4. Deliver on the Opportunity
   During your pitch, make sure you cover all the bases when it comes to your business. Come prepared to talk about your team’s experience, the technology and competition, your business model and financials, the realistic size of your market (and if it’s growing) and your go-to-market strategy. These things should all be a part of the story in support of the ask. With that, VCs will consider risk factors. Is there anything you offer that might mitigate risk? Things like experience, external market validation, another investor at the table, or significant sweat equity and skin in the game from the core team are all very helpful.
   Tip: Hone your pitch. When it comes to delivery, I like a mix of passion and expertise. Confidence and charisma don’t hurt, but don’t go overboard. The same goes for your expertise –do not get into the weeds of the technology unless asked. The best pitches are concise and underscore how we can work together and mutually benefit. After all, it is a partnership.