What you should know before your first fundraising pitch
At a Life Science Ventures Summit hosted by the Kauffman Foundation, Huffington Post writer Jennifer Hill led a discussion focused on the players in entrepreneurship and asked the panel about approaching investors (0:38:28 – 0:44:00). The panel included Nick Franano, Avi Roop and Geoff Clapp.
Here were some of the insights from the panel:
Use pitches as learning experiences - "Pitching is crucial, and not being afraid to go to large venture capitalists," said Roop. "They have insight at a much higher level and to a much broader spectrum of invention and technology, and they are going to give you very rapid feedback and very rapid guidance."
Research your potential investors - "I think you do need to consider who you are pitching to," said Clapp. "If your angel or seed or series A isn't asking about things like traction, about your engagement model, about how you're actually doing, you shouldn't be going into any kind of fundraising money with a PowerPoint deck."
Finance is just as important as the innovation - "Initially lay out the development plan for your products and then to immediately superimpose on that a financing plan that fits with your development plan," said Franano. "Otherwise, your development plan is not credible without a plan to finance all the way through to your exit."
Weekly Wisdom from Kauffman is a regular feature on eMed highlighting helpful advice from the Kauffman Foundation.