2. 2 Venture Capital “Secret” #10 The purpose of your business plan is not to get your company funded

3. 3 Venture Capital “Secret” #10 The purpose of your business plan is not to get your company funded o The goal of your business plan is to progress to a meeting

4. Typical Annual VC Deal “Funnel” 1,000 Plans Received 150 Companies Met 25 Serious Due Diligence 5-10 Deals Done

5. 5 Venture Capital “Secret” #9 Start-up companies don’t get funded by VC firms

6. 6 Venture Capital “Secret” #9 Start-up companies don’t get funded by VC firms o Start-up companies get funded by partners at VC firms

7. 7 Venture Capital “Secret” #8 VCs are inherently lazy (well, at least overworked)

8. 8 Venture Capital “Secret” #8 VCs are inherently lazy (well, at least overworked) So it’s your job to make it easy for the VC o Get a high-quality intro o Develop a great executive summary o Why is your proposal compelling?

9. 9 Venture Capital “Secret” #7 Not everyone at a venture capital firm is actually a venture capitalist (i.e., has investment authority)

10. 10 Venture Capital “Secret” #7 Not everyone at a venture capital firm is actually a venture capitalist (i.e., has investment authority) Analyst  Associate  Principal  Partner

11. 11 Venture Capital “Secret” #6 VCs may not always be (totally) honest with you

12. 12 Venture Capital “Secret” #6 VCs may not always be (totally) honest with you Example 1: Does the VC firm currently have capital available to invest?

13. 13 Venture Capital “Secret” #6 VCs may not always be (totally) honest with you Example 1: Does the VC firm currently have capital available to invest? When did they raise their last fund? When did they invest in their last new portfolio company?

14. 14 Venture Capital “Secret” #5 VCs may not always be (totally) honest with you Example 2: In what potentially competitive companies has the VC firm already invested?

15. 15 Venture Capital “Secret” #5 VCs may not always be (totally) honest with you Example 2: In what potentially competitive companies has the VC firm already invested? Which companies do you view as directly competitive? Most portfolio companies are listed on their website!

16. 16 Venture Capital “Secret” #4 VCs may not always be (totally) honest with you Example 3: The reason a VC passes on your deal may not be exactly what they tell you

17. 17 Venture Capital “Secret” #4 VCs may not always be (totally) honest with you Example 3: The reason a VC passes on your deal may not be exactly what they tell you Nobody wants to burn bridges

18. 18 Venture Capital “Secret” #3 The squeaky wheel really does get the grease

19. 19 Venture Capital “Secret” #3 The squeaky wheel really does get the grease Unless, of course, the VC learns to dread the interaction Be brief Be pleasant Be informative

20. 20 Venture Capital “Secret” #2 You know more about your science… but the VC knows more about venture capital

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22. 22 Venture Capital “Secret” #2 You know more about your science… but the VC knows more about venture capital “I’ll give you your price… if you give me my terms” o Liquidation preferences o Dividends o Redemptions o Voting Features

23. 23 Venture Capital “Secret” #1 VCs are not in the investment business

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26. 26 Venture Capital “Secret” #1 VCs are not in the investment business

27. 27 Venture Capital “Secret” #1 VCs are not in the investment business o VCs are in the returns business