[Music] Welcome to billion dollar startup where We bring you Visionaries and disruptors Who have started scaled sold or invested In a billion dollar startup also known As a unicorn we also feature Tech Founders who are building the next Billion dollar startup billion dollar Startup is a unique podcast sponsored by Dragonx Capital The Venture Capital firm That concentrates on seed and early Stage tech companies with the X Factor Okay to continue our conversation we've Talked about where to find VCS and the The proper way to approach a venture Capitalists and let's say you are in Front of a VC and you want to pitch your Billion dollar idea right how should you Pitch them should you give them a 100 Page slide deck no right so you talk too Much no so how should we preach them Um so the average VC goes through about A thousand or so pictures every week we Go through a thousand for sure the Number is about a thousand to ten or Something like that and if you ask any Of them Which ones do you really remember yeah And they will always tell you the one With the best stories yeah facts tell Story sales facts tells story cells so Uh if you really think about it Um I I don't really care about your Technology
What I do care is the why Why are you doing this Why are you the right person to do this Why is this the right time to do it so My suggestion is this let's say Um you are coming because you're going To win uh create the software company That is going to help doctors with Cancer patients you can't come and say We have the technology that's going to Make doctors do a better job of cancer Research yeah what you should do Is to come and say stories something Like God forbid you know Um I had a best friend who died of Cancer which unfortunately has happened To me and that has prompted me to help Doctors solve this problem because I Don't want people to suffer the way his Family and I have suffered And that's why I've decided to build This company And we think this is the right time to Do it because we have the technology to Do it so on and so forth in other words You always begin a story never begin With a deck if I'm interested in your Deck I will ask for it so I want to hear The story and in this story you're Establishing a few things number one That you have a personal connection to The problem that you're solving the Reason that is important is because if You understand that problem you have a
Better shot of finding the better Solution for that problem than someone That doesn't understand that problem as Well as you do yes number two it's not a Question of if it's a question of when Things go wrong You have the propensity to remain with The problem and not give up and continue To work hard because you have a desire To fix this problem for a bigger reason Than just making a company work number Three the solution to that problem will Be more meaningful to you and that's That's going to allow you to show more Grit more hard work so we're looking for That storytelling up front we are Looking for that personal connection to The problem that you're solving and we Want to know this is something that is Of meaning to you versus oh this is a Way I'm just going to make money and one Of the things that we look for is we we Look for Founders that can articulate The solution example if when we talked When we talked to the founders if we say Okay tell us what problems are you Actually solving if they cannot give us Kind of like a 30 second one minute you Can set elevator pitch way out if they Say hey you know what let me let me open Up my slide deck and then and it's Complicated I need to show it to you uh It'll take like 20 minutes then we know They cannot articulate the problem that
They're solving or sometimes we see I Mean I we see Founders they are so Attached to the technology right they go Just like technology crazy let me tell You about this Tech and let me tell you About this and let me tell you about That and it does this and this and this And this and this and this and we just Say so what problem are you solving oh We can solve a lot of problems without Right way out So in short we're looking for a team That has a very good story yeah that is Concise that is narrowly focused with a Clear clear statement about the problem They're solving and nine out of 10 Entrepreneurs cannot state that they Always go back to saying this is what Our solution does versus saying this is The problem we're solving and how low Should the pitch be typically be very Short uh you know the pitch is this is The story That we've decided to solve this problem This is why now is the right time to do It and this is how we plan to solve it And and the Venture capitalists if they Want to know more they would they would Say who is the Target customer how big Is the market is the growing Marketplace And all the unit economics and all of That but we want to begin with a story And see the connection and we are very Much we're looking at that's why we like
To do is do virtual uh we're looking at The the person's body language the face Expression not just the personalities Yeah like are they likable because Sometimes there's something that are Just right you know they're Just arrogant we've seen a lot of those Yeah they had one last week so part of The reason storytelling is important is Is demonstrates the ability to build Rapport and that ability tells me that That team that entrepreneur that CEO That founder can hire the best people First and foremost can get in front of The most important customers can most Importantly erase the next round and I Want them to be clear because in lack of Clarity if there is no Clarity with Limited resources in the starting stages Of a company they will not be able to Optimize for customer acquisition in the Appropriate channels which means they're Going to be wasting a lot of very Valuable resources up front and that's Dilution for investors as well as the Founders yeah and that's how you raise Money and that's how you pitch Venture Capitalists until next time happy We appreciate you joining us for this Episode of billion dollar startup be Sure to rate review And subscribe to the Show and visit dragonx.com for more Resources based on today's topic as well As for access to previous episodes
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