Founders, here’s your startup pitching guide as shared by expert VCs themselves

The startup ecosystem is a high-stakes arena where innovation meets capital. 

For aspiring entrepreneurs, securing investment is often the linchpin to transforming a promising idea into a thriving business. However, navigating the complex world of venture capital (VC) funding can be daunting. 

To help you through this crucial step, advice from several VCs at the Startup Arena Pitch Battle during the Tech in Asia Conference 2024 could make your startup stand out.

The anatomy of a successful pitch

A compelling pitch is more than just a sales presentation; it’s a narrative that captivates investors and showcases the potential of a startup. 

Joel Neoh from First Move said a successful pitch builds on three pillars: the future, the past, and the present. This approach organises the presentation and covers all the critical aspects that interest investors.

“The future vision should be inspiring and ambitious, painting a picture of the impact the startup can create,” he explained. It’s not just about what the product or service does today but where it could go tomorrow. 

Investors should be able to imagine a world where the startup is wildly successful. If they can visualise this future, they’re more likely to believe in it. 

Joel emphasised that storytelling plays a crucial role here, helping to create an emotional connection and making the investors feel the excitement of what could be.

“The past should demonstrate traction, showcasing the team’s ability to execute and achieve milestones,” he shared. Joel advised highlighting progress, significant milestones, and exponential growth. 

Demonstrating past success builds confidence in the entrepreneur’s ability to deliver future results. Investors want to see that the startup has already started on the path to success. Metrics, user growth, revenue, and other indicators of traction are crucial in this part of the pitch.

“And the present should outline the clear path forward, highlighting the company’s current focus and strategies,” shared Joel.

Entrepreneurs should detail the steps they’re taking, their immediate goals, and how they are navigating current challenges. This reassures investors that there is a solid plan and the ability to carry it out effectively.

Finding the right fit

Kevin Sutantyo from Sovereign’s Capital highlighted the importance of alignment between founders and investors, also known as the investor-startup fit.

It is crucial to ensure a strong connection between the founder’s background and the problem being solved.

He emphasised the need for relevant experience, showcasing how the team’s expertise makes them the right people to tackle the problem. And speaking of the right people, not every investor is the right match for every startup. Finding the right fit can make all the difference. 

Kevin advised researching potential investors to understand their interests and previous investments, and then tailoring the pitch to align with what they’re looking for. 

Seeking compatibility is vital. Entrepreneurs should look for investors who not only bring capital but also align with their vision and can provide strategic support.

“Authenticity, transparency, and a genuine passion for the business are essential qualities that resonate with investors,” said Kevin.

Thinking big and global

Malaysia boasts a burgeoning startup ecosystem with a wealth of talent. However, the local market is relatively smaller than its regional counterparts.

To achieve significant growth, Malaysian startups need to adopt a global mindset. “The world is our oyster,” said Samuel Simanjuntak from Monk’s Hill Ventures.

“Founders should aim high and target regional or global markets from the outset.”

Joel agreed, emphasising the importance of thinking big. “By focusing on global opportunities, startups can access larger markets, attract top talent, and build more substantial valuations,” he explained. 

“While it may be tempting to focus on the local market, a global perspective is essential for long-term success.”

Overcoming challenges and securing investment

The path to startup success is fraught with challenges. From securing funding to building a strong team and navigating market competition, entrepreneurs face numerous hurdles. 

To overcome these challenges, founders need a combination of resilience, adaptability, and a relentless pursuit of excellence, said Chrissy Hu from 500 Global.

“Investors are looking for founders who are not afraid to take risks and learn from their mistakes.”

“Demonstrating a strong work ethic, a deep understanding of the market, and a clear vision for the future are essential qualities that attract investor attention,” said Chrissy.

Chrissy also advised maintaining relationships with VCs, as they might pass on a startup now but could invest later as the company grows and evolves. 

Viewing VCs as partners invested in the startup’s success can offer valuable insights and resources beyond just funding.

Joel echoed this sentiment, sharing his personal experience of facing numerous rejections before securing funding. 

“Even when I was fundraising for my startup, I had 63 no’s before I got one yes. That’s kind of how we got started,” shared Joel.

He said that building a strong network and maintaining positive relationships with investors can open doors in the future.

Securing investment is a crucial milestone for any startup, but it’s just the beginning of the journey. 

By crafting a compelling pitch, building strong investor relationships, and adopting a global mindset, Malaysian entrepreneurs can increase their chances of success. 

Featured Image Credit: Vulcan Post