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Would it be helpful if a team adds a slide to the effect of "Here are reasons why you might NOT want to invest in us"? i.e. stating the deficiencies we know we

Would it be helpful if a team adds a slide to the effect of "Here are reasons why you might NOT want to invest in us"? i.e. stating the deficiencies we know we have and addressing them head on instead of waiting until reality differs from expectation.

SmellTheGlove 9y ago
I'm not a VC, so take this for what it's worth (nothing) - Self-awareness is huge. You should know the reasons why a VC might not want to invest in you, regardless of whether it ever comes out of your mouth or goes on a slide. If a VC is interested but has concerns, they're going to ask these questions, and you'll be better prepared to address them. It's up to you - and situational awareness matters - whether you decide to speak to these points even if you're not asked.
- fapjacks 9y ago
  Totally! So just show them you've got situational awareness by taking the initiative without them having to ask.
Alex3917 9y ago
> Would it be helpful if a team adds a slide to the effect of "Here are reasons why you might NOT want to invest in us"? No. Having a list of risks and assumptions you can send folks is good, and shows maturity. But it doesn't belong in the deck, which should be for introducing yourselves and telling your story.
chris_va 9y ago
Usually the better pitches have a discussion on risks/challenges to overcome, and how you are going to use the current VC round to do that (and the timeline, etc). "Big risk item is delivering T tech by D date, requires P person for M months (usually a specific person), who we will hire at time T_1 after getting our funding round" If most of the VC's concerns are on your list of challenge milestones, then they will be more likely to believe the rest of your pitch as being accurate.
- swyx 9y ago
  I have never pitched a VC but this was surprising. A pitch that requires a specific person who hasn't yet been hired? What if the person is unavailable? This seems to be misleading specificity.
  - jonnathanson 9y ago
    Somewhat common in pitches from seasoned entrepreneurs. It shows they've thought things through, have identified specific individuals they believe they should attempt to onboard post-funding, and are operating as though they actually know what they're going to do right after they get the giant check.

SmellTheGlove 9y ago

I'm not a VC, so take this for what it's worth (nothing) - Self-awareness is huge. You should know the reasons why a VC might not want to invest in you, regardless of whether it ever comes out of your mouth or goes on a slide. If a VC is interested but has concerns, they're going to ask these questions, and you'll be better prepared to address them. It's up to you - and situational awareness matters - whether you decide to speak to these points even if you're not asked.

fapjacks 9y ago
Totally! So just show them you've got situational awareness by taking the initiative without them having to ask.

Alex3917 9y ago

> Would it be helpful if a team adds a slide to the effect of "Here are reasons why you might NOT want to invest in us"? No. Having a list of risks and assumptions you can send folks is good, and shows maturity. But it doesn't belong in the deck, which should be for introducing yourselves and telling your story.

chris_va 9y ago

Usually the better pitches have a discussion on risks/challenges to overcome, and how you are going to use the current VC round to do that (and the timeline, etc). "Big risk item is delivering T tech by D date, requires P person for M months (usually a specific person), who we will hire at time T_1 after getting our funding round" If most of the VC's concerns are on your list of challenge milestones, then they will be more likely to believe the rest of your pitch as being accurate.

swyx 9y ago
I have never pitched a VC but this was surprising. A pitch that requires a specific person who hasn't yet been hired? What if the person is unavailable? This seems to be misleading specificity.
- jonnathanson 9y ago
  Somewhat common in pitches from seasoned entrepreneurs. It shows they've thought things through, have identified specific individuals they believe they should attempt to onboard post-funding, and are operating as though they actually know what they're going to do right after they get the giant check.