04 Nov Pitching Investors: The Good News and the Bad News
The Bad News: Raising equity capital is NOT easy! Statistically, Angel Investors will evaluate up to 40 companies for each one they invest in (about 2.5%). Venture Capital firms invest in even fewer than that, typically less than 1% of companies that they evaluate.
The Good News: There are several measures that you can take to improve your odds. Pitch Creator provides a library of free resources that can get you started, including a free Mini-Course. If you’re looking to really up your investor pitch game, our Foundation Course will walk you step-by-step through the entire process of developing each element that should be incorporated into your pitch.
I guess I’d like to start, just get a sense from the room. So, who’s an entrepreneur? I know you guys are entrepreneurs, but just raise your hand, if you’re an entrepreneur, working on a startup, working on a company, right now. Okay, great. Who’s an investor? Okay. Incubator?
This is a newsflash, raising equity capital is actually, not easy. So, statistically, angel investors will evaluate 40 companies for every one they invest in, so they invest in about 2.5%. Venture capital firms, actually, invest in approximately less than 1%, so they look at 100.
The U.S. Small Business Association recently said that sometimes they’ve had statistics that VCs will look at close to 400 for each one that they invest in.
So, that is the bad news. The good news is that just today, we’re going to help you improve those odds slightly. If you go to our website, we’ve got some pre-courses on there. One free mini lesson or mini course is called, “Why is the ‘Read Me Pitch’ More Important than the Slide Deck?” Just watching that mini course will help you improve your odds.
