Top 12 Things NOT to Say in a Venture Capital Pitch


 Top 12 Things NOT to Say in a Venture Capital Pitch

From CaptialTN

12. “Our company has no competition or substitute service.”

11.  “We only need 1% of the market to have $1 billion in revenue, which we’ll achieve in year 3.”

10. “I’m not worried about customer acquisition. Our product will sell itself.”

9.  “XYZ Company was valued at 100x revenue. Therefore, we should have the same valuation. [Thanks Castlight IPO].”

8. “I don’t believe enough in my company to invest my own capital in it.”

7.  “Our projection model uses X% margins. We don’t really have anything to substantiate those numbers, but they just feel right.”

6. “We’ve got everything else covered.  We just need capital for sales and marketing and plan to hire 20 sales people at once.”

5. “If we hit our [hockey stick] projections, you will receive a 10x return on your investment.”

4.  “Our addressable market is the _____ industry [insert extremely broad category], which is a $500 billion industry."

3. “At my previous company, Acme Global Conglomerate, I was paid a large salary. I expect the same salary for my pre-revenue start-up.”

2. “I’m here to make you and your partners rich."

1. “Our projections are conservative.”

CaptialTN is a professionals organization for investors. Our mission is to foster the growth of Tennessee’s entrepreneurial ecosystem through improved access to the capital continuum. The organization strives to maintain high professional standards, sponsors professional development, and facilitates interaction among its members.