Some of the best startup pitches sound crazy, & VCs are often skeptical. But I want to caution founders not to fall into “debate mode,” & to stay focused on the sale.
Here’s how a pitch goes off the rails, & how to get it back on track:
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Step 2: VC pushes back
Step 3: Meeting devolves into an abstract debate about the unimportant claim
Step 4: As time runs out, the founder struggles to reconcile the disagreement.
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The key thing to remember is that you’re trying to close a deal, not win an argument.
Your goal for the meeting should be getting the VC agreeing with you.
These are some tips that help spur alignment and avoid arguments:
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Your goal should be to get buy-in on shared premises to get the audience agreeing to numerous premises before invoking cognitive dissonance on the most complex assertion.
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Only debate the most controversial element of your startup. For instance, don’t oversell how big a potential market is with dubious data, lest it lead to a loss of credibility for your more important claims.
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Don’t assume the key insights that make your startup special are obvious. Help the VC “get there” on points that might be contentious. You likely have been living with this project for a year or more, the VC only has an hour of exposure to it.
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“In most cases that’s right, but here’s how this is different…”
“I too was surprised at first, but then...:”
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I’m not suggesting founders should try to flatter investors — they should just meet them where they are.
Don’t just tell VCs what they want to hear — Don’t omit key risks or shortcomings to close a deal. Never mislead.
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It’s often not just about *what* you tell them, it’s about *how.*
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Investors need to be persuaded, not defeated.
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