Not only does Adventure Capital’s Stuart Richardson have a great hairdresser (we share the same barber) but he knows a thing or two about pitching for venture capital. This is because he lives at the receiving end of hundreds of pitches every week.
Some pitches are sophisticated and require 20 minutes in a boardroom. Others are casually thrust his way during social gatherings, like so many under-cooked snags on a backyard weber.
In this three minute video, Richardson reveals three don’ts (and one do) when speaking with an investor.
1. Don’t ask for ‘just a little bit of money’: Rookie business builders under-estimate the amount of capital required to succeed on a large scale. A sophisticated investor does not want to back your pipe-dream or hobby. As the name suggests, they seek sophisticated investments.
2. Don’t ask your prospective investor to sign an NDA: It’s almost impossible for a professional investor to agree to a confidentially contract. Jordan Green talks about this Catch 22 at length here. (Why won’t prospective investors sign my confidentiality agreement?)
3. Don’t arrive without help: Form an advisory panel in advance or gather partners in the industry. It will show that you are serious. It’s rare for a newbie in any industry to succeed where experienced professionals have failed.
