Cut the BS - 5 startup tips by VC investor Guillermo Flor

Oct 02, 2024

Guillermo Flor, is a VC investor at GoHub Ventures, an early-stage VC fund based in Valencia. Guillermo is also the author of an excellent newsletter for startups.

We hosted him at the Meet.Capital Startup Podcast a while back, where he shared insights about finding product market fit (read the summary here).

This time, he gave me some of his best tips for founders pitching investors and VCs. Here goes:

1. Show that your team is the one: Your team is one of the strongest signals of your startup’s potential. You should obviously highlight your team’s strength, but not only. You need to show investors why your team is best suited to take your specific startup forward. Make it clear that your team is the best for your mission, both as individuals and as a team, complementing each other.

2. Be clear about your actual market: Use a bottom-up approach to calculate your market size, showing exactly how many potential customers exist and how fast the market is growing. Avoid vague figures and inflated numbers. Don’t try to impress with big numbers without proper justification, focus only on your actual market sector or niche.

3. Explain how their investment will generate a return: Investors want to see how their money will drive growth with a strong ROI. Explain clearly how funds will be allocated, focusing on accelerating product distribution and increasing key metrics. Investors are drawn to startups that can show a clear path to multiplying their investment and reaching significant milestones quickly.

4. Cut the BS: Most investors are very sensitive to any trace of BS or lies, and are great at detecting them. if you don’t know something or haven’t tested a strategy, admit it. It’s far better to acknowledge what’s still being developed or tested than to make promises you can’t keep. Being open about uncertainties shows maturity and honesty.

5. Don’t be shy about follow-up: If an investor hasn’t responded to your pitch, don’t hesitate to follow up. A lack of communication from your end might be interpreted as a lack of interest. Investors appreciate founders who are proactive and engaged. A simple, polite follow-up can reignite the conversation and show that you’re committed to moving forward with the deal.