Reverse Pitches – do investors stand out?

 

Startup pitches are on trend nowadays. On stage or not, good or bad (as Alex Barrera would argue in his post), to get feedback or to get investment. Wait a second! To get investment?! There are too many startups that forget it is not just about money.

I’ve seen many cases at conferences when just because the person nearby is an investor, the founder starts immediately to try to sell the startup to him. That’s it: one way selling, no check of potential mutual benefits.

They forget to check in advance investment criteria, where did he invest (maybe a competitor? maybe a complementary business?), success stories, failure stories, other benefits that the investor can bring, work style with startups (maybe some recommendations from the startups he invested in already), chemistry etc.

In front of the investor, the entrepreneur just pitches and waits for THE positive answer. But would they really want to work with that person? Would they really want to give him shares in his company? As founders take great care in choosing their co-founders, they should take the same care in choosing their investors. BEFORE pitching to them!

And this would actually make investors feel less hunted. Because then the “selling” becomes a real discussion and a search of mutual benefits.

Since business events made startup pitches so trendy, it is now time again for business events to make investors and accelerators pitches trendy as well. Hence, lately you can bump into all sorts of Reverse Pitches.

It is time for investors and accelerators to make an effort to stand out from the crowd in the eyes of the entrepreneurs. 

Watch below an interesting reverse pitching session from European Pirate Summit 2012, moderated by Roxanne Varza and featuring: