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Aug10
How to Listen to a Pitch

Marc Nathan  of the
Houston Angel Network (Little known fact -- HAN is one of he nations three largest single branch angel groups.) sent me a great article on the art of watching a pitch.

I've sat through quite a few pitches with quite a few investors, and many, I'm afraid, need to pay attention to points 4 and 6 in the post: "Focus on the Problem and the Solution" and "Be Courteous an Polite".

I've seen too many angel investors use techniques to try and get the entrepreneur out of his or her comfort zone -- looking down at the floor, checking emails on the Crackberry, impatiently looking at their watches, interrupting with outlanding questions, etc. -- all in the name of finding out what the entrepreneur is made of and discovering how he or she reacts under pressure.

Sure, being cool under fire is important, but if you focus your energy trying to make some one fidget, you're obviously focusing on the wrong thing.

7 Comments/Trackbacks




Amen!

That's Right! It can result in underestimation of the worker's capacity or knowledge.

The first rules of being a visionary leader, accordin to Philip Kottler are:
1.Catch people doing things right and then let them know that they are doing things right.
2.Use feedback to stay informed about what other people are doing in your area of responsibility and authority.
3.Have regular, focused meetings regarding the projects that you are responsible for.


Bravo! These are all fantastic points, and it's about time somebody gave the investor some advice! I especially love point #5. Thanks Dharmesh! We look forward to hearing your thoughts on this batch of Y companies.

Yes indeed, these really are intimidating techniques, they are very well studied and rehearsed by some business people. Believe it or not, it works, this fact is proofed. I myself was trained in school about these techniques, i hadn't had the chance to practice them though.

In regards to the advice on how to watch a startup presentation, it will be interesting to see how the VC's will respond while on camera on CBC's upcoming reality show. I've been keeping up-to-date with some of the buzz (www.insidethedragonsden.com), but essentially the show will consist of entrepreneurs pitching their ideas to the VCs for a series they're calling "Dragon's Den". I wonder if it will be over-dramaticized, or how different the VCs might be off-camera?

Yeah!

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