Businesspeople who simply claim their technology is so compelling customers will naturally follow need a reality check. Md. Rather than emphasize the technological minutiae, Winston stresses investors will want to know more about an entrepreneur's business experience. Above all, focus on the return investors will see. But, venture capitalists say, it is important to be realistic and honest about the challenges ahead. For instance, if a company claims it doesn't face any competition, its credibility is destroyed.
Venture capitalists use presentations to determine an entrepreneur's character.
They are looking for someone who has charisma, who can communicate and has the proven ability to lead. But they realize there isn't a cookie cutter mold of the perfect leader. Although pitching a business plan to investors is a defining moment for an entrepreneur, venture backers stress a fledgling company's future isn't solely tied to a 10-minute presentation. Andrea S. Kaufman, an associate at Novak Biddle Venture Partners in McLean, says investors will have plenty of time to delve into young company's technology and strategies long after initial introductions are made. Making a polished sales pitch is more important down the road when you're telling your story to Wall Street.