If you are a startup entrepreneur with a Web3 project that you need to pitch to a Venture Capital investor, it's important to know what the investors are looking for. In this column you can find some tips on how to make your pitch stand out and impress the investors.
Web3 is the evolution on Web 2.0, which itself was an evolution of the first version of the internet, when web pages were merely displaying information for an audience to browse. Web 2.0 allowed for engagement and interaction with users, such as social media website. Web3 aims to empower anyone with actual ownership of digital assets such as personal data.
Investors in Web3 tend to look at how your project could improve the current state of the internet or solve a specific problem. For instance, if you identified a problem related to the use of data that has yet to be addressed, you could come up with a Web3 solution to address it. Spoiler alert: many have already tried, but yet not succeeded on a global scale.
It is crucial for you to estimate accurately what are your estimated costs and how will you use the funding you receive, so that the investors know what to expect in terms of development and deliverables.
Generally avoid to pitch a “solo” project. Investors are keen to know who is behind the project and what are their qualifications.Probably this alone is one of the key criteria the defines the difference between a go and a no-go investment.
Eventually think that investors are willing to take a risk by providing you with funds that you will have to manage. In other words, they delegate the risk to you. So it is very important that you measure success and evaluate what are the potential risks involved in the project. Frequent reporting is usually appreciated in a VC-startup relation. Some project appoint a dedicated person to investor relation, making sure that the chain of communication is always fulfilled.
You might have heard many times other founders pitching their projects as something meant for the long haul, and not a quick “get rich easy” scheme. I personally have heard it so many times that I have become indifferent to it. Anyone can promise anything, but the test of time is the only assessment criteria that matters. In short, can you articulate what are your plans for long-term sustainability and how will you ensure that your project remains relevant over time? That is what investors are looking for.
If you want to have a quick checklist ready, these are the most common points to address when pitching your project to an investor.
1. Introduce your project and explain the problem you are trying to solve
2. Describe how your project is different or better than existing solutions
3. Outline your business model and how you plan to make money
4. Show that you have a team of experienced developers who are capable of executing on your vision
5. Explain why you need investors and what they can expect to gain from supporting your project Even after receiving rejections, do not give up on your dreams. With a clear vision, an experienced team, and a sound business model, you have everything you need to succeed.