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« Welcome to hellomartin.com | Main | 2007 Web2.0 conferences »

07 January 2007

Comments

Aner Ravon

Ouriel,

I really like your writing, but you made me "shake" this time too :)...

Basically I agree with everything you say of course. I can probably add a few examples of my own. However, I get a sense of too much VC criticism about Entrepreneurs and too little news about VCs actually making investments. It's not the criticism that bothers me, it's the proportions and the fact that people who join VCs forget the "old language" and switch to "VC language", a language that is not echoed by an array of impressive VC investments.

Many entrepreneurs have great ideas but do not know how to make a perfect pitch. So what? What does that mean exactly?

This, IMHO, is the exact reason for why angels are so much more dominant in the early stage - they are not bound to the "VC rule book", that same book that costs VCs the real interesting opportunities. VCs are doing many things in an attempt to change that situation, including hiring people like yourself who "come from the field". I urge you to not fall into the "perfect pitch" trap, it usually gets way to much credit and overshadows the real value proposition and potential.

To the subject matter itself, I think many entrepreneurs make their first steps when they pitch to VCs. They need to learn a thing or two about crystalizing, marketing, effectiveness and analysis. The VC adventage is in the ability to create the environment that takes them through the process and not in pointing out their flaws. Otherwise those same entrepreneurs you mentioned, or at least those of which who've failed the pitch but have a great idea at hand, will find an angel investor and keep ya guys out of the loop.

blundstone

thanks ouriel. its good to see some down to earth info again and no wooing and yaying about new shit all the time.

Ouriel Ohayon

Aner

I take your comment very seriously and i appreciate it.

To tell you the truth those are not critical aspects in my approach of reviewing a company. And even if all those things were said during a same meeting (!) but the product, idea and team were good, then that would be no problem.

Actually what i hope is that this post could modestly contribute to help entrepreneurs "polishing the corners" that will be meeting with me sooner or later. Those are things i already say during my meetings. So i thought it could be good to share.

To develop a bit more i am not expecting any pitch by the rules, i am deeply respectful (or try to be) of entrepreneurs and i pay much more attention to the people and the idea that a nice ppt or a pitch. The important thing is detecting a potential.

And my post has nothing to do with "the perfect picth". This is just about again "polishing" the corner. The important thing is not here. Although i have to admit presenting well has an impact on the perception by an investor (including angels). But i try to go beyond that. And many times, i work with entrepreneurs helping them improving their pitch. Many could testify of that. But a pitch is not enough.

Regarding investments....will talk about it very soon again :)

We are working hard to find good companies to invest in at very early stage. I hope will be able to show that soon.

Pierre-Olivier

Aner,
Great comment !


Ouriel,
Of course you are right on many points, but may be we can have the points that make you shake again, but positively ?!?

It's the Guy Kawasaki's style, you know ? Top Ten VC's lies or Top Ten Entrepreneur's lies :-)

ouriel

what do you mean by positively?

Aner Ravon

Thanks for your feedback Ouriel, I know you appreciate innovation and that you know how to listen and see through a pitch. I hope you realize I used your post as a spring board to stirring a discussion.

ouriel

And you were right to do so ;) as you said there is always a risk a VC loose touch with what really matters. I am glad you reminded me

Pierre-Olivier

Sorry, it wasn't clear. I meant "What has to say an entrepreneur to make his project especially interesting" ?

What are the "must have" of THE perfect pitch ?

ouriel

Pierre Olivier, i am not sure i can't help with that. I would say a good idea and a good team? for the rest check out http://www.gemini.co.il/?p=Entrepreneur

Pierre-Olivier

Thanks for your answer, and this - useful - link.

My question was more about your own point of view but "a good idea and a good team" are a good start :-)

Adrian

With regards to:

“We have no competition”: first make sure that you checked on that well (use BuzzShout or MomB for this), if possible before our meeting."

Thanks Ouriel to the tip-off on Buzzshout..

In keeping current with the latest Web offerings, check out this new feed I've created:

http://feeds.feedburner.com/LaunchpadWorldwideWeb20CaseStudies

contents: Startup Review, TechCrunch, Go2web2, MoMB, nPost Entrepreneurs, Buzz Shout, Mashups via Programmable Web.

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