On my long flights I get a chance to do some interesting reading – this time on the subect of the clarity of a presentation and how this might impact a technology deal or venture capital funding. I came across Some very interesting research on this subject done by: Denis Gregoire, Alice Koning and Ben Oviatt on the impact of an in person pitch vs a submitted business plan or technology brief.
The research presents a study on the venture capitalists’ real-time opinions on entrepreneurs’ presentations. The authors base their analysis on real time responses submitted by 25 venture capitalists using dynamic response devices while the VC’s are evaluating 18 presentations at a real venture financing event. The authors compare the submitted responses with the particular moment in the entrepreneur’s presentation and identify what information venture capitalists considered influential for their decision to fund the venture.
The study revealed that presenters who were casually dressed and yet talked about their high experience, received negative ratings from the venture capitalists. In all other cases, highlighting of the entrepreneurs’ experience did not have any major impact on the VC’s.
Factors for Successful Business Pitches:
- Entrepreneurs are dressed formally and look professional
- The presentation is well organized and consistent – there are few leaps from one category to the other
- Clearly articulated purpose of the venture – how the venture will address the problems of the customers
- Entrepreneur focuses on a narrow and niche markets/industries
- Entrepreneurs have patents for their products
- The presentation is not longer than the time limit
Factors that have little impact on VC’s funding decisions (all entrepreneurs highlight these– so there is no differentiation)
- Entrepreneurs have long experience in the industry
- Highlighting of the capacity and abilities of the management team
- Size of the market and potential growth of the venture
- The position of the presenter (whether he/she is the founder, a hired executive or technology specialist)
Gregoire, Denis. Koning, Alice. Oviatt, Benjamin. 2008. “Do VC’s Evaluate ‘Live’ Presentations Like They Evaluate Business Plans?”. Frontiers of Entrepreneurship Research. Vol (28), No (3), Pp 1-15
Yet2com Blog 
When in Rome dress like a Roman
I am not able to tell from your comment the ‘business culture’ back grounds of the VCs or the entrepreneurs. It could simply be East Coast VCs reviewing entrpreneurs one or two of whom were West Coast Entrepreneurs.
I have been at East Coast, West Coast, Gulf Coast meetings where the footwear ranged from cowboy boots to Gucci loafers (worn without socks) to Allen Edmonds lace-ups (with socks. Business casual jeans and golf shirts, California style, can be just as expensive as Brook Brother suits.
Would you want funding from someone who wants you to dress his/her way ?
Peter Ginn
Very interesting, Ben. Makes good sense…”What’s the opportunity?” “Why should I feel confident that it’s a credible opportunity.” Over and out. Most venture presentations are bloated, self-important pieces. You’ve pointed out compellingly why one should stick to the essentials. Nice post.
Ben, interesting story/observations. I think that presenting a compelling story about what customer need is being fullfilled in a passionate way without overdoing it, are the most important aspects.