DON’T OVERLOAD INVESTORS WITH TECHNICAL STUFF (TOO EARLY)

As venture capitalists, we very often experience investor presentations which quickly move into a lot of technical details. And by “quickly”, I mean before we have even formed a basic initial opinion about whether the company and its idea might be interesting to us at all.

WHAT AN EARLY INVESTOR PRESENTATION REALLY SHOULD BE ABOUT

The rest of such an investor presentation can be a waste of time for both parties. First, if you as entrepreneur overloads the potential investors with technical stuff at this point, they might not even listen, as their thought instead are circling around some basic questions:

· Your amazing team and its experience

· The major problem you solve or market you address and how you do it

· Your unfair competitive advantage

· Why just now?

· Why your market is — or will become — very big, and how much of it you think you can get

· Your go-to- market strategy and how to earn money

· How you get customers

· Your traction so far

· Predictable milestones. When will you achieve them?

· Your realistic financial projections

· Are there clear routes to exit?

· How much more capital will be needed until exit?

SAY WHAT??

Second, it is often difficult to explain too much technical stuff to investors who may not be experts in this particular business area.

WHAT YOU REALLY NEED TO SELL

Instead of this, we recommend addressing the questions mentioned above and nothing else. If you do this well, and if this generates initial interest, then you have sold the commitment to have a follow-up meeting.

STEP-BY-STEP

And if that also goes well, then you will eventually get to the stage where you must supply lots of technical information. All in due course.