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Step 1
Get the appointment with the venture firm. The fund you pursue should have investment targets in your industry or don't even call them because you are wasting their time and yours. Getting an appointment is just like cold calling for sales and you need to have a pitch that is quick and to the point. Answer the question of why should they give you an hour of their time. Yes and hour is all you're going to get. The fund will have a pre-appointment process or you need to send them a bound copy of your business plan. Look professional, they expect it. Make sure you know who you will be meeting with and do your home work on them prior to the meeting. Ask them if they have a projector or presentation equipment so you know what you will need to bring if anything.
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Step 2
Arrive tor the presentation earlier enough to get set up without a rush. The funds know they need to give you time to set up and they manage their conference rooms to accomplish that. Arriving 20 minutes early for a plan presentation is fine, but you need to be their 30 to 45 minutes early if you are doing a product presentation. Run through the demo script (yes have a demo script) quickly to make sure there are no conflicts with the presentation equipment. Be ready and be calm before the people you present to arrive.
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Step 3
Start with a quick overview of what you will present in the hour and why it is compelling. Do not overstate it. Do not over hype it. Venture capitalists see so many companies that anything other than business efficiency in your approach will very likely turn them off. They think they know a good idea when they see one, you don't need to trumpet it.
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Step 4
Present your idea and the reasoning behind the product. DO NOT say that there is nothing like it on the market, or no one has ever had the idea. This is something that will turn them off like a switch. To them, it means one of two things. First that you haven't done enough market research, or second you're not objective. You are better off pitching that the product fills a need "like" something as an example, or the product is "like" a leading product, but better/different in the following ways. It's completely ok to say you're going to take market share away from an industry leader. They understand that your company getting 3% to 5% market share could turn you into a large company and an acquisition target.
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Step 5
Summarize progress from founding through today. Be honest about set-backs, lessons learned, or even mistakes. The VCs know that happens and it's better to be straight with them. They will respect you more if you do. Chances are you will not get in the door without the product because VCs are generally not interested in funding product development because it is a risk they cannot control. Scaling up companies or bringing them to market is what they are going to be looking to find. Present your demo next if you have one to present
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Step 6
Take them through the uses of the venture capital you are raising. Where will the company be once the money is spent? This doesn't mean you need to be ready for an IPO or acquisition, but it does mean you need to outline milestones. The VCs will know that things will change, but outline your expectations. Be prepared with answers to what could go wrong questions, or what delays could happen.
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Step 7
Present the management team in terms of expertise and previous venture funded business experience. Lack of experience is not a deal killer, but it is a liability to manage in your presentation. Board of Directors and Advisory Board member should be listed and summarized. Sometimes the right Board or Advisory Board members can minimize the lack of experience. VCs will assume these people will help and keep you our of trouble in general.
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Step 8
The "exit" is next. Make sure you explain to them how they will make a return and when the could expect to do so. Clearly tell them what their "X dollar" investment will return "y dollars" back to them. How will the exit happen? You should have more than one path an exit could take. The VCs know things change over time, but they are looking for level-headed business logic.
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Step 9
Wrap up by asking them their opinions and what improvements you could make in future presentations. Try to get them to help set your expectations about their process and or next steps. Follow up the meeting with thank you emails.
