Angel investing · Business planning

MVP pitch- seed round

Ivana Petkova entrepreneur

February 14th, 2019

Hi guys,


We have been working relentlessly on our MVP which is based on quite novel and sophisticated technology. The potential of this technology is huge and we can scale up quite quickly, encompassing many markets. However, we decided to base the MVP on a really small segment market so we can only demonstrate the actual technology. My question is when I am looking for seed capital shall I promote the whole potential of the idea ( speaking about markets more generally) or my pitch dec, business plan, branding etc should be solely focus on the MVP product? Shall I present the product as something big that will disrupt completely a certain ways of doing something or just present it as a product that solve problems in this particular MVP segment? Thanks in advance for your opinion.

Leon Rubinstein Co-Founder @ Mobiiuz - products that improve people's life

February 14th, 2019

Hi Ivana,

You can certainly mention the big market, but nothing will matter if you don't show first the traction you already have in you small niche and, hopefully, some KPIs showing that you cans scale it up, even within this first niche.

Without this, thte total market size won't matter much...

Good luck in your fundraising!

Todor Velev Managing Partner, EEI Network

February 14th, 2019

Given that the VCs invest for big return (and hopefully in future unicorns) you should show your full potential. That you start with a niche market is not bad - you can test the waters and pivot if needed before going big.


The problem is with the idea for seed funding. I have no idea how much you have raised up to date, but if you are still at MVP phase and will launch soon, "seed" is a big word. Despite all the talk and hype about the VCs, the reality is very simple - they invest when the product-market fit is proven and the business model seems scalable and profitable. Basically - when you have traction and a lot of risk is eliminated (even the execution risk - you have demonstrated that you can make it happen).


So, prepare a good deck (problem / solution / market / GTM / etc.) and try to find pre-seed investors (less than $1mn), even if you need more. Restructure your funding plan, cut on everything that does not generate sales, and see how much you need.

M.H. Lines Inquisitive learner, voracious reader and technology enthusiast

February 14th, 2019

We do the same. To investors, start with a slide on the total market oppty, then introduce the market segment as a beachhead. On tam, show both the full and market segment tams

Steve Owens

February 14th, 2019

Pitch that you are focused on getting this market to profitability, and then you will scale the rest of the market.

Andrew Chalk Co-Founder of a startup. CEO of a startup. CTO of a Hedge Fund. Quantitative Researcher. Superb COO.

February 16th, 2019

Pitch narrowly around the merits of the MVP. On the very last slide drop the other shoe...Oh, by the way...

Eric Kaufman Managing Director, Acumen Business Advisors,llc, Startegic Advisor to startups and small businesses

February 14th, 2019

Ivana.

The term “disruptive” connotes great promise — if it can be proven. At this point, I assume you cannot. If your product will cause disruption, the already entrenched competitors will be fighting back. All of which only adds the fear of greater risk in an investor’s mind.


Instead of demonstrating a Minimum Viable Product, if possible, show a Minimum Saleable Product. In other words, not only does it work, but you have secured paying customers. Even at the “seed” stage, investors are looking for proof of concept. Start with what you have. Then present where its applicability may lead.


By all means, solicit only the minimum amount you need to get to the next level. After having achieved the KPI results you’ve proposed, securing additional funding will be much easier.

You already have great comments. Hope mine help, as well. Good luck. *�H�� 1

Michaela Griggs Global Business & Marketing Executive | Consumer Goods | Healthcare

Last updated on February 14th, 2019

Yes I believe it is important pitch the full market potentialpotential- sell the night idea and then drill down how you will get there and how your current strategy [though a smallsmaller opportunity] is the right proof of concept option and then show how you will scale to the bigger oppopportunities.

Douglas Slain JOBS Act Solutions

February 14th, 2019

Ivana, Regarding your seed round, if you want to discuss it, just let me know and we can set up a call. What SEC exemption(s) are you using? How much is the raise?

Rex Stock

Last updated on February 19th, 2019

Damned if you do, damned if you don't. The VC is always looking for a way to stall... All they really want is a safe bet. Lemmings all marching toward a cliff.

Douglas Slain JOBS Act Solutions

February 19th, 2019

Ivana, Did you receive my last email?