The First Call

So, you heard back from a VC and they have asked to get on a call or meet with them. How do you best prepare for it?

First and foremost, it is important to understand whom you are going to?be?speaking with on the call. Most probably, you will be talking to an analyst or associate at the firm. Analysts and Associates are typically tasked with sourcing deals and conducting business diligence on potential investment opportunities. This is a great chance to establish credibility with the firm and entrepreneurs should treat it as such.

First comes the story. Obviously, this is very subjective but there are some things you should look to cover. I suggest you do some soul searching and understand what got you here. Share your experiences and how you identified the problem statement.?VCs hear stories all day long - or at least for the most part. Why will your story stick in their head? Why should they think of your story at the end of the day and figure out how they can partner with you on the fantastic business that you are planning or have already started setting up??VCs love a good story and this is your chance to shine. Talk about why you and your co-founder are the best team to run the business, why it is the right time to be in business and why it makes sense for an investor to come in at this stage.

Next, you should prepare by getting up to date with the business and industry. It is easy for operators to get lost in the trenches and miss out on what's happening around you. My suggestion is to come prepared with an armada of data and case studies that tie in with your story. Show VCs why the sector is worth looking at and who the major players are, where do you stack up in the landscape and how do you plan to establish a big presence in the market.

Once you are up to speed on the macro picture and have set your story, it is time to zero in on your own business. Brush up on all major numbers - the number of employees you have, number of customers, operating metrics, financial information (revenues, fixed costs, MRR, burn rate, unit economics, etc.), how much money does the business need, how long will it last and where will it take your business. You will be on call with people who are extremely comfortable with numbers and will intuitively figure out if something does not tie together. Look over the numbers, reflect and see how to best represent your business, while staying true to its essence.?

Once you feel you have everything you need to pitch, get out there and practice. Grab anyone willing to listen, iterate, and fine tune your pitch till you can recite it without missing a beat. This is a long process and will require a few calls with various VCs before you can be confident in your pitch. I suggest you have 2-3 different versions of your pitch ready - a simple 2-minute version, a 15-20 minute version, and a longer 30-45 minute version. VCs love asking questions. Keep pace with a 2:1 or 3:1 split, where you allocate 15-20 minutes out of an hour long conversation for questions.

Your first?call has two goals. The first is to pitch your company effectively and the second is to get to a second call. Think of the call as a first date. Would you tell everything about yourself, good or bad, on a first date? The goal with VCs is to get to the next call and keep them coming back for more. Lastly, seek feedback - on your pitch and on the business.?VCs?are in a?vantage?position and interact with founders on a daily basis. Use this chance to glean some relevant insights and incorporate them in your next pitch.