What are the most effective ways to build credibility during a VC pitch deck presentation?

Doing some homework to learn who your listeners are helps in two ways. First, you make sure the audience has a potential interest in your proposal. For example, my fund is interested in early-stage Industrial AI, so no good pitching me a late stage ad-tech company. Second, if you have some preliminary idea of what your particular vis-a-vis may prefer to see in a pitch would simply make it more appealing and make you prepared for follow-up questions.

Launching into a VC pitch without knowing your audience? That's like setting sail without a map. The secret weapon to building instant credibility is tailor-made insight. Dive deep into the psyche of your target investors—understand their desires, dilemmas, and decision-making drivers. This isn’t just about flattering them; it's about showing you’ve navigated the complex terrain of their expectations. When your pitch deck mirrors their mindset, you’re not just presenting; you’re conversing, demonstrating respect and preparation. Ready to turn your pitch into a dialogue that resonates? #divineintervention #gabenfreude

It is often easy to start your pitch jumping to a medium-term goal or showing how your company is swiftly making it toe the unicorn club. However, be prepared to show a compelling step by step path to your success. Assess where you currently stand, try to picture where your ambition to end up is and then try to formalise a bridge of how you are going to get from one point to another. Knowing this or at least thinking about this would show that you not only are full of ideas, but can execute them too.

The story and the narrative is imperative but it won't overcome the cold hard facts. There's an emotional buy in you need from your investors but founders shouldn't over-spin the facts into a story that isn't accurate. When inevitably found out it will tank credibility.

Ambition and self-belief are good qualities for a startup founder, but it is always better to back up your case with some practical confirmation or sound research confirming your idea.

There are three dimensions of persuasive evidence Statistical Proof [Numbers] Social Proof [Names/ Brands] Story Proof [Narrative]

The most common mistake founders make is stating that their product has no competition. There always is competition, if not directly, then for time or attention. This is an example of a founder incorrectly assessing their risks. Of course, the most success happens where the risks were unaccounted for but never realised, but it is always better to do some thinking ahead and try to predict the predictable - that way you'll have more resource to deal with the unpredictable.

Ignoring risks in your VC pitch? That’s like navigating a ship ignoring the storm ahead. Credibility soars when you confront challenges head-on, showcasing not just optimism but preparedness. Detail your battlefield—be it fierce competition, regulatory jungles, technical mountains, or market moats—and then, unveil your master plan. How will you dodge these arrows, scale these walls, cross these chasms? A startup that not only recognizes its hurdles but also arms itself with strategies and contingency plans doesn't just inspire confidence; it demands respect. Ready to turn potential pitfalls into badges of honor? #divineintervention #gabenfreude

If you know your market, you know it and it will show up when you discuss about it with investors. There is no such as "no competitors", risks are always big, very big, know them, reflect on these and be transparent. During one meeting, a VC expressed his "doubts" about the inherent risks, the founder smartly replied a lot of skilled climbers did the Mount Everest...risk is much bigger for a disabled individual, but with the right training, assistance..some made it too (he's been financed). Understand investors have their own views, might not be realistic but this is how it is. One thinking a marketplace Saas makes no sense as an over crowded market will hardly be convince otherwise but it doesn't mean you won't be successful.

There are two major positives with feedback: (i) it flips the conversation from a solo pitch to a back and forth engaging discussion for both parties, nobody wants to be downloaded too without a chance to respond; and (ii) the more questions you take from a potential investor the less they are left wondering after the event.

Thinking your VC pitch is a solo performance? Flip the script: it's a duet. Inviting feedback transforms your pitch into a dynamic exchange, where investors' insights become pivotal to refining your vision. This approach signals more than openness—it showcases resilience, humility, and a commitment to growth. Engage them, listen genuinely, and consider their perspectives as invaluable contributions to your venture's evolution. Following up post-presentation not only seals this relationship but also cements your reputation as a founder who values collaboration over ego. Ready to turn feedback into your venture's secret ingredient? #divineintervention #gabenfreude

VCs are always testing for founder fit. Why is this the BEST team to solve this problem? Are you hungry enough to suffer in the pursuit of solving it? How far are you willing to go? Lean into the obsession, your knowledge about the space, and how much effort you have and are willing to give to make your company work. If you're asking for $ and telling investors that you're going to build a billion dollar company, well, then you better be putting everything on the line for it and you need to demonstrate that somehow.

Authenticity is overused in VC, but remains one of the most important characteristics. In a world flush with smart people with good ideas, as an investor, I need to see your passion and your distinct advantage in why you are the right person to execute your strategy at this time. Ideally, it's something you are deeply connected to, but that needs to be paired with something where your skill set strongly aligns.

At the start of the meeting ask the investors you are meeting which part of your startup they would like to spend the majority of time to understand better. And then spend time to deep dive on this topic…

Traction. Traction. Traction. - You could write a Hollywood-directed pitch deck. - Someone else could write they have a $10k MRR. They win.

Always remember that investors are placing their money behind you as much as the idea. They will be working to not only understand the business but if you and your team can deliver it