The First Date: an Investor Pitch

Abstract: Research question: What investment criteria in a pitch do managers of venture capital firms assess and how does the information presented in the pitch affect their decision-making? Purpose: To examine and contextualize what investment criteria venture capitalists assess in the different levels of a pitch and analyze the effect of the information presented in the pitch on their decision-making. Methodology: A qualitative multiple case study with specific sampling. Semi-structured interviews lay the foundation for the empirical data, where investment criteria and decision-making were mainly researched. Theoretical perspective: The theoretical framework is made up of investment criteria, the Pitch Assessment model, and decision-making processes. Result: Eight investment criteria are identified and categorized into different pitch assessment levels. These criteria include Market, Product/Service, Team, Environmental, Presentation, Entrepreneur, Finance, and Business plan. The pitch’s effect on the venture capitalist’s decision-making varied to different degrees, but considered at minimum as a rewarding introduction. Conclusions: The criteria Team, Entrepreneur, and Product or Service were assessed by every single venture capitalist. However, team, product or service, market, and having a benefit to society were regarded as having the most impact on their decision-making process. Furthermore, the “venture information and pitch content” included the most criteria in the Pitch Assessment model, whilst “presenter’s style and approach” included the least. In regards to the decision-making process not over exaggerating, but rather under-promising and over-delivering, in addition to remaining consistent throughout the investment process, was considered very significant by investors.