It's common to call a presentation to a VC a 'pitch'. There are lots of phrases that make us use this word ('elevator pitch', 'pitch book', etc) and I have been using this it in my previous posts. However, it's not really the best way to describe what an entrepreneur should be doing.

The word 'pitch' implies salesmanship - an attempt to convince a VC that your idea is exceptional. That's not the right approach. You shouldn't be trying to sell VCs on your concept; the facts should sell themselves. Your job is to educate the VC on the plan and the vision - there's no need to exaggerate.

The problem with over selling a concept is that a VC is going to eventually kick the tires. It will make you look bad the hub caps fall off. You'll lose the trust of the VC, someone who you should want to be your partner throughout the life of this venture and your future endeavors.

Not overselling doesn't mean that you should hide your enthusiasm or under sell the facts. Share your passion for your idea; VCs need to see that to believe in your commitment to the company. This shouldn't be a dry presentation, just an honest one.

Often the most technically capable managers undersell the opportunity. They want to highlight the point that their projections are attractive even when conservative. This approach can be helpful. However, some key metrics are most useful when they are accurate, not understated. For example, it's unfortunate when an addressable market is intentionally estimated to be too small - the VC has to invest their time calculating the real opportunity.

It's not a pitch; it's a presentation of the facts, why your team is the horse to bet on and why you are excited to pursue this venture. Provide the most accurate story that you can and you'll earn the trust and respect you'll need to be successful.

Comments

[Jonathan Treiber]

That's a really big distinction. I've been using the terms interchangeably and need to retain my brain. It is most definitely a presentation (of the facts) and not a pitch (overselling the opportunity).