Pitching to VCs

A classic post by Baris, outlining how he likes to see a company explain its business and funding needs.  He adds a "what the VC is thinking" component to each section, and tops it off by an actual ppt that provides the outline for his model.

He points to the Per Customer Economics, as the most important slide:


The most important slide of the whole presentation.  A good answer
here shows how well you’ve thought about your business.  Per user
economics is how VC’s reduce all business to the same units.  How much
does it take for you to acquire a customer?  How much revenue do you
get per customers?  What’s your cost of goods per customer?  What does
it cost you to service each customer?  What is churn?  What is the
lifetime value of a customer and profit per lifetime of the customer?
Any entrepreneur who doesn’t have the answers or see the risks, doesn’t
yet understand his/her business.

What the VC is thinking: "What is a customer worth?"

There are many businesses where the per customer economics is critical.  Although, IMHO, it’s always the team that makes or breaks a company, and its investors.  My most important slide would be #5.

One thought on “Pitching to VCs

  1. I agree. Team is key for me too. I guess I should have said, per subscriber economics is the most important for the team to have understood.
    Pitches are important. I once saw an entrepreneur go through 96 slides in 1 hour.


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