Tip #1: Explain your business in simple terms
May 6, 2009
by Thanasis Delistathis
Memo to entrepreneurs: can you explain to your mother what your business does and what problem it solves? Great. Now explain to VCs the same way. Here is a mythbuster for you: VCs don’t need to hear buzzwords to think you are smart. In fact, the more buzzwords they hear the more they think: (a) that it is a sign of insecurity and (b) that the entrepreneur may not have an appreciation for the audience. Even if a certain partner knows your industry, you risk “losing” the other partner in your pitch.
Once you have finished your presentation, go back through it again and remove any industry acronyms and replace them with generic, simple to understand terms.
This is good advice not only for VC pitches but for any communication: to customers, employee prospects etc. Simplicity in explaining your startup tells other that (a) you have understood the essence of the value you are offering customers; (b) you are focused in executing your plan. That improves the chances that investors, emplyees and customers will internalize your message and be able to communicate.
Originally published at navfund.com.