How to pitch a startup in your VC interview

Hi! I’m glad you’re here. You’ve made it to issue #28 of VC Demystified🪄.

My name’s Nicole - I’m a Principal at an early stage venture fund, and I know firsthand that VC can often be a black box. Breaking into the industry may feel daunting and resources can seem scarce and inaccessible. I wanted to put together a newsletter to give others the playbook I wish I had when I first started.

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Today’s deep dive: How to nail a startup pitch in your VC interview: A guide for aspiring VCs

My personal mission is to open as many doors as possible for other people and this newsletter is just one avenue to do that. As always, I will continue to post VC insights daily across my socials for those of you who prefer those channels.

How to nail a startup pitch in your VC interview: A guide for aspiring VCs

Landing a role in VC is a competitive process and an important part of the interview process is your ability to pitch a startup.

Many VC interviews include a scenario where candidates must present a startup they think would be a great investment for the firm.

The goal here is less about the startup itself and more about how well you understand the fundamentals of venture investing and how well you communicate your thoughts.

As a VC, this is one of the most important aspects of your job. VC interviewers want to know you can do it well!

Whether you're brand new to VC or preparing for an interview, this newsletter issue will provide you with a step-by-step guide on how to 1) choose, 2) research, and 3) present a startup in a way that resonates with experienced investors.

Let’s get into it!

Start with What You Know

When it comes to selecting a startup, avoid choosing a company just because it's flashy or trendy. Instead, pick a company in a sector you’re familiar with.

This ensures that you’ll be able to speak confidently about the market dynamics, key players, and challenges. You’re not just pitching a startup; you’re showing that you understand the broader industry context, which is key to successful VC investing.

*IMPORTANT: Be sure to choose a startup that fits within the right industry and stage of the VC firm you are interviewing for!!

5 Key Elements to Include in Your Pitch

To build a convincing case, be sure to cover these essential areas:

1. Benefits & Considerations of the Deal

   • Explain why this startup is an attractive opportunity.

   • Outline the unique value proposition the startup offers, the problem it solves, and the strength of its product or service.

   • Don’t shy away from the risks. A good pitch isn’t just about selling the opportunity but showing you're aware of potential risks like market volatility, scalability challenges, or regulatory issues. Addressing the downsides shows you're thinking like a smart investor.

2. Market Sizing

   • Lay out the market potential with a clear estimate of the total addressable market (TAM). Use a mix of top-down and bottom-up approaches to give a well-rounded view.

   • Talk about why the market is growing or ready for disruption. Show that there’s a significant opportunity here and why now is the right time.

   • By articulating market sizing, you’re not only showing that the opportunity is substantial but also that you understand how to quantify it, which is crucial for making investment decisions.

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