Don't Skip the Competition Slide in Your VC Pitch by Kaleidico

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									Don't Skip the Competition Slide in Your VC Pitch The biggest lie consistently pitched to Venture Capital is, "we don't have any competition." Fact is, if the market is big enough and the need compelling enough there is or soon will be competition. If you want investor money, don't skip or skimp on this slide. Explain the Customer Your VC pitch probably already talks about customers, don't regurgitate. How does your competition think about customers? Who are they targeting? How do they see the market? If their is sufficient customer demand for your solution then their will be competition. Fortunately, every new business comes with different experiences, biases, and angles. That gives you opportunities to attack blind-spots. Define the Competition In defining the competition you should start with the general, particularly if you think you are alone. Your competitive analysis should address these key seeds to competition:

• • • •

Why would someone build something similar? What skills would a competitor need to enter the market? Where could a competitor come from? Are any existing companies potentially working on the idea (Google)?

Give Examples Dissect each of your competitors. Where did they come from? What is their experience? What is their focus? These questions and answers need to be core to your business plan. Assuming they are not as smart or talented as you is guaranteed to get you beat. Your pitch should highlight the weaknesses you are going to leverage in your strategy. Critique Competitive Strategy It is easy to explain how you are going to beat the competition. Explain what you would do if you were the competition. What would you do next? Assume the same resources, talents, and background.

Copyright 2008 Kaleidico, LLC www.kaleidico.com

What would you do to prevent successful new entrants into the market? How would you strategically respond? These are the questions that put you ahead in the business chess match. Your Angle You have, by this point, thoroughly analyzed the competition. What are you going to do about it? This is where you sell. Important point--end your competition slide here don't start it here.

Copyright 2008 Kaleidico, LLC www.kaleidico.com


								
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