First things first — when you’ve finally put together your pitch deck and are beaming with pride, ready to hit that “send” button, I strongly recommend holding off on sending it. Instead, consider running it through a mini-investment committee simulation.
Think about it as if you’re searching for a dance partner for a high-stakes, professional competition. The investors you choose are no different. Would you select just anyone who can dance, or would you opt for someone who knows the exact dance you’re performing? Is it salsa, tango, or pole dancing? Your investor selection can make or break your performance.
Now, let’s delve into what’s on
’s mind as he joins us at ’s Investment Committee Simulation to evaluate startups.
Mangrove Capital Partners is a pioneer in early-stage investment and was among the first backers of Skype, Wix (NASDAQ), WalkMe (NASDAQ), K-Health, and The Bank of London.
While they function as a generalist fund, Mangrove maintains a keen focus on core themes, which they diligently revise during their annual team offsites. In recent times, their convictions have been centered on crucial domains such as education, healthcare, and silver tech (for the elderly population).
In their investment strategy, Mangrove places a strong emphasis on Europe and Israel, allocating capital evenly between these regions.
Nikolas has been an early supporter of Included VC and is unquestionably one of the most insightful minds to learn from. You can read his article here to understand why he wholeheartedly backs Included VC.
With almost nine years of experience as a venture capitalist at Mangrove, he’s honed his expertise. What sets him apart is his firsthand experience as a founder, building an online drugstore in Germany.
When it comes to communication, he gets straight to the point and articulates his reasoning with precision. He’s also exceptionally generous with his knowledge, insights, and, of course, his warm smile.
Venture capitalists are, well, ‘venture’ ‘capitalists’, after all. It’s crucial to distinguish between a regular bank, a private equity firm, and a venture capital firm. But, that’s a topic for another blog post. Right now, just keep in mind that their primary focus is on getting a return on investments. The entire system is designed with that in mind.
So, you’ll need to reverse-engineer from their objective function and constraints. The objective function here is to maximize ‘return on investment.’ Speaking of ROI, it’s quite a multifaceted concept, which includes:
When it comes to your pitch, remember the fund’s thesis, its specific focus areas, and the geographical regions it targets, all in the context of their constraints.
So, it all starts with truly understanding the individual you’re about to present to — think of it as a kind of ‘marriage.’ Your speed dating session commences the very moment the investor opens your deck, and you’ve got an average of just 50 seconds to make a memorable impression.
When reaching out to an investor with your pitch deck, keep in mind that your goal is to secure a conversation, and not an instant commitment. A ‘call’ in this context primarily means they want to get to know your team and what you are working on.
Moreover, if you’ve achieved something remarkable, like winning a Nobel Prize, definitely showcase it and take pride in it — after all, anyone with a Nobel Prize would naturally highlight such an achievement.
In our case, both the founder and one of the advisors are Nobel Prize laureates. While this looks impressive on paper, it raises two questions in Nikolas’ mind:
This highlights that decision-making involves multiple aspects. The standards are even higher than you might expect.
Begin by directly explaining what your company does and the problems it addresses.
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In Nikolas’ own words: “When someone from my team approaches me to pick my brain about something, I ask them the following questions:
Here, Nikolas isn’t just aiming to comprehend the value your company brings to its market, but he’s also seeking to grasp what sets you apart.
He makes an honest observation, stating: “I often read the headline and don’t even pay attention to the numbers on the slide.”
He emphasizes the importance of having one key message per slide, with that key message typically serving as the headline. Interestingly, this is a common practice in management consulting when creating PowerPoint presentations.
The element of timing is crucial. The “Why Now” is like the heartbeat of your pitch, and it’s all about explaining why launching your business or solution right now is a game-changer. You’re going to back it up with hard data or some pretty convincing reasons to show that this timing is just right.
Here is my two cents to make this slide count. Try answering these two key questions:
In the startup deck we were evaluating, the founders were harnessing generative artificial intelligence in their solution. There’s no doubt that it piqued his interest.
In the world of venture capital, there’s a relentless pursuit of top-tier talent. No exceptions. Investors will inevitably ask: Are you the exceptional team perfectly poised to conquer the market? They’ll also ponder why you’re building what you are. After all, what you’re about to construct might not be entirely novel, but if your competitive edge gleams, you’ll make it uniquely yours within your chosen market.
A stellar team can make all the difference, even if your product idea or concept isn’t entirely groundbreaking.
Traction is all about creating value for folks out there. The big question is whether this traction is your ticket to your desired destination.
Founders, by their very nature, are a bunch of optimists. It takes a certain level of unshakable belief to embark on such a journey. However, from the investor’s standpoint, they’re on the lookout for any concrete proof to back up this vision. And there’s no better evidence than folks actively using your solution. Period.
Show them the numbers and dig deep into just how much they appreciate what you’re doing. That’s like the cherry on top, sealing the deal with a sweet finish! 🍒
The most crucial slide, yet often neglected until the end. Founders, let’s do everyone a favor and give it a top spot.
Founders often display logos from companies they’ve worked for or collaborated with, but this alone doesn’t reveal much. Nikolas rightly points out that these logos alone don’t provide substantial information. Instead, tell him what you achieved.
Certainly, investors want to get to know you better during a call, but you must give them a compelling reason to say, “Let’s have a conversation.” The key here is to demonstrate evidence that signals a strong founder-product-market fit.
Well, now that you’ve sent the deck, it might seem like the ball is in the investor’s court, but not quite. This is your opportunity to take the lead and be proactive about sharing your insights and what you bring to the table. Provide valuable insights, self-generated market analysis, or a sneak peek at your groundbreaking technology to the VC firm. Demonstrate your comprehensive knowledge of the field and how what you’re doing surpasses everything else out there by a factor of ten. This not only instills confidence but also equips investors with the firepower they need to persuade their team at the fund.
Nikolas wants to work with founders who genuinely excite him. He’s looking for individuals who thoroughly grasp the magnitude of the scale he’s aiming for. Building a $1 billion USD company is a colossal endeavor. So, you must demonstrate that you have what it takes, or at the very least, the potential to reach that level. Either way, it ultimately depends on you, dear founder.
It all boils down to one essential question:
Can the founders turn this vision into a reality?
When demonstrating this, remember that your pitch deck is not meant to cover every aspect of your startup; its purpose is to evoke interest. Therefore, you need to be laser-focused on the absolutely essential pieces of the puzzle to show investors the big picture, and the vision you are working on.
If there’s a venture to be crafted with substantial value, your pitch deck acts as a beacon, illuminating your professionalism, dedication, and sheer determination to make it happen. So, as you step into this exciting journey, remember that the path is paved with possibilities, and your potential knows no bounds.
Yet, above all, your belief in it should lead the way.
With this mindset, you’re well-equipped to tackle the challenges and cherish the wins that await you.
Onward to your success!
As always, my limitless thanks to Anu and Niki for making this happen.
Thanks for reading. If you find it helpful, pass it along to your fellow founder. For any questions or assistance with your pitch deck, I’m just a message away on LinkedIn.
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