Experienced venture capitalists and business angels review enormous amount of business plans per year and hear countless pitches from entrepreneurs on daily basis. They know how to sift out the information and have specific criteria, which help them speed up and improve the decision making process when choosing a venture worth their time and money. Entrepreneurs must give to the investors the right information presented in the most suitable manner in order to capture their attention and spark their interest. It is easier said than done!

There are many things that could go wrong when you pitch an investor. But, as all passionate entrepreneurs know, there is always something positive that could come from every situation. There is always something that can be learned. Receiving feedback from the investors can be a great motivator for improvement and even growth.

Questions

Before the final investment decision is made, the investors must be sure that the business has potential. To start from the very beginning, they need to ask questions, as many questions as they can, in order to understand better the idea and its strengths and weaknesses. Investors tend to look not only for the things that could go right, but mostly try to figure out where the biggest risks hide and what are the things, which could go wrong.

Rejection

Don’t think that investors are the bad guys just because you hear NO as an answer even when you thought that you nailed that pitch. Don’t forget that investors have a great interest of finding the right venture to invest in. They look for win-win situations and spend a sufficient amount of time choosing the best deals.

Criticism

Receiving feedback from the investors is a great source of information. Listen to what they have to say to you – their concerns and opinions are based on years of experience and solid knowledge. Even though receiving criticism can be dreadful, entrepreneurs should appreciate it. When the critique is constructive, it can set solid foundations for future improvements. It is important not to take it personal, to evaluate the critique and respond accordingly without to lose your temper.