Venture Capitalists Explain Why They Choose To NOT Invest In Your Business
This article explains what puts venture capitalists off. Will it help your next pitch if you know what buttons to press instead of the ones you pressed the last time?
Like most VCs they get dozens of new opportunities every week. They have developed a system that enables them to quickly filter those opportunities that don’t meet the criteria they’ve set (e.g. industry, stage, model).
The deals that survive this initial culling process are subjected to much greater scrutiny and due diligence. This process includes a thorough review of the deck, financial statements and projections; discussions with the founders, customers and other investors; and a review of third-party information relevant to the company, its product and industry. Companies are eliminated from further consideration during various stages of this process and, in the end, we ultimately invest in a small percentage of the deals we review.