How to Get Venture Funding, page 15

Crafting the Approach

Whether you have an introduction or are going over the transom, you should have crafted a complete approach before contacting the VC. This complete approach should include preparation of all the materials outlined in “Materials Needed to Approach a VC” later in this briefing.

While some experts believe it is best to avoid e-mail, this author’s experience is that an initial e-mail pitch works well. If there is a personal introduction, it should be noted at the beginning of the e-mail. The text of the e-mail should include a succinct summary of the business idea (the “elevator pitch”). An executive summary should be attached. A meeting should be requested.

It’s a mistake to believe that an e-mail—or a fax—will get a response. It won’t. The typical VC partner just gets too much e-mail. But it may stick in the partner’s mind when you later phone for an appointment.

No venture ever gets funded without an in-person pitch meeting. So, the object of the VC approach is simply to get a meeting, no more, and no less.

The hope is that the e-mail—with or without an introduction—will impress the VC enough for you to get an appointment.

Follow up with a phone call a few days after you send the e-mail. You may find it best to try to talk to the VC directly, or just request that the VC’s administrative assistant schedule an appointment. Remember that your goal is simply to schedule an appointment, not pitch your idea. If you have a personable administrative assistant yourself, it is acceptable to ask them to call the VC’s assistant to schedule the appointment.

The Art of the Pitch

No two successful pitches are alike, and successfully conducting pitches is more akin to an art than a science. In other words, you’ll have to find a style that works for you.

It’s best not to come to a VC pitch meeting alone. There will most likely be anywhere from three to six people representing the VC, so you should have a few people as well. Two or three is the ideal size team. This is enough to show that you have management depth and to cover your back by fielding questions that might have you stumped—but not so many as to be unwieldy. If you have no one appropriate at your company, you might want to consider borrowing a senior executive who is a friend. This person could be billed as an executive adviser.

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