Written by: Dan Dragicevich
We’ve all seen The Office. Even if you haven’t, you’re probably familiar with the infamous character Michael Scott—a hot mess of hilarity, sarcasm, stupidity, and cringe-worthy moments. And yet, we can’t look away…
So, what does Michael Scott have to do with venture capital? There’s a scene in the episode “The Surplus” where Oscar informs Michael that they have a $4,300 surplus that needs to be spent by the end of the day, or it will be deducted from next year’s budget. Michael, completely lost, responds with, “Why don’t you explain this to me like I’m an 8-year-old…” Then, just as you think he’s getting it, he adds, “Why don’t you explain this to me like I’m 5…”
While this scene is a classic moment from one of the greatest comedy shows of our time, there’s a lesson here for founders seeking their first institutional check: VCs don’t know your business as well as you do. So, pitch it like you’re talking to Michael Scott!
Founders are incredibly smart, with brilliant ideas, but sometimes their strengths can be their greatest weaknesses. When preparing for your pitch, remember that VCs, at their core, just want to understand what your business does. Be like Oscar, and explain it as if they’re 8—or even 5—years old. And keep these three tips in mind:
Tip #1: Understand Your Pitch Time
At Kerosene Ventures, we recommend that a typical pitch should last no more than 10 minutes. For a standard 13-slide deck, that means you have about 45 seconds per slide. This constraint should prompt you to trim the excess and keep your presentation high-level, avoiding unnecessary details.
Tip #2: Pitch Cadence
After learning about Tip #1, many founders rush through their pitch, speaking a mile a minute. Remember, 45 seconds per slide is plenty of time to hit all the major points. If you rush, VCs will lose interest—or at the very least, feel overwhelmed. To keep their attention, take a breath between slides. A 1-2 second pause not only allows you to catch your breath but also gives the VC a moment to ask questions or digest the information.
Tip #3: The Goal of the 1st Meeting is to get a 2nd Meeting – Not a Term Sheet!
In your first meeting with a VC, your main objective is to make them like you and understand your business enough to want to meet again. You want them to be thinking about you in their next meeting. The further along you get in the meeting process, the closer you are to securing a term sheet. If you treat each meeting as a step toward the next, you’ll likely progress smoothly toward your goal.
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