The Reverse Pitch: Hear what the investors said

Following RTC’s Investment Summit in July, this month’s Reverse Pitch event flipped the format: investors took to the stage to pitch themselves to tech founders.

The event gave 40 local tech founders a rare opportunity to hear directly from VCs, angels, PE firms, and corporate finance experts about what they look for in a winning pitch, how they differ in stage, sector, and strategy, and get actionable tips to sharpen investment plans.

The event was hosted at EY Reading and led by Dr Keith Arundale, co-founder of the RTC and a Senior Visiting Fellow at Henley Business School, University of Reading. He was joined by YFM Equity Partners, Maven Capital Partners, BGF, LDC, The FSE Group, Henley Business Angels and Barclays.

Missed this event? Not to worry here’s a summary of what they said and the common themes they shared. Make sure you join the RTC today to come next time.

WHAT DO INVESTORS LOOK FOR?

1. Strong, adaptable and resilient founders and leadership teams

“…we back the people involved… a great founder can sell an average product better than an average founder can sell a great product.” Jonathan Day, The FSE Group.

“(We) want to know how the team will act when it doesn’t go to plan as this is the only thing you can guarantee… will they take advice?” Kate Ronayne, BGF.

“What is key, is the team… you can have the best idea in the world but unless you have the right team, and the right dynamic in the team, the venture all too often doesn’t go anywhere.” Chris Rees, Henley Business Angels.

2. A clear proposition and growth trajectory

“(Have) real clarity on the problem being solved and differentiators… boil it down. Be honest about the proposition…. Where does your business fit in the market. Lay out clearly what you’ve achieved so far.” Matt Gordon-Smith, YFM Equity Partners.

“Why is now the right time for this business? What is it about the bigger environment that makes this the right time for the business to grow?” Kate, BGF.

“The moment we fail to understand it’s a ding and we move on…” Jurek Sikorski, Henley Business Angels.

“…is it very clear what the product is, the problem you’re solving.. and what you need the money for…put in simple terms that anyone can understand…. Very clear what they are wanting and how much money they are wanting…be straight to the point.” Priya Kaur Bhogal, Barclays.

3. Differentiation and purpose

“People. Product. Market… like authenticity, a real reason to exist.” Jonathan, The FSE Group.

“It is very common to state that our business has limited competition, which is seldom the case and isn’t a problem. Competition in a market is a good thing, it evidences the viability of a product and of the market – the key point is how your business is differentiated.” Chris Baker, LDC.

HOW TO BE MORE SUCCESSFUL WHEN PITCHING

1. Keep it simple and clear

“Pitch decks should be 10-15 slides that set out story… keep it simple. Investors are often not experts in the field… never underestimate the ignorance of an investor, spell it out, don’t make us draw out the conclusions.” Jonathan, The FSE Group.

“Pitch deck is about is there enough there for me to want a more detailed conversation… enough to say this is worth it to waste an hour of your time talking to investors.” Kate, BGF.

2. Show strategic use of funds and risk awareness

“Be clear on why the business needs investment and what it will be for, otherwise investors may form their view and get it wrong. Focus initially on the ‘Why’ and ‘What’ you want to build, but also into the ’How’ and ‘by When’ – the latter is very important, and investors will usually over-index on the execution plan. It’s about how you think about execution and how you might pivot, rather than the purity of the forecast plan which seldom plays out in line with expectations.” Chris, LDC.

“How you going to use the money… and we ask you to talk about the risks… we need to know you understand the risk and have a strategy.” Jurek, Henley Business Angels.

“Exit is important (to talk about)…never lose sight of why you started… you’d be surprised how many people find they can’t exit as they wanted… have an exit strategy.” Priya, Barclays.

3. Build relationships early and use advisors thoughtfully

“Often you need money to ride the next phase of growth.. Talk to lots of people… find out how others have done it…. if you’re early in the growth journey build connections with angels… (they’ll) give you advice and connections.” Matt, YFM Equity Partners.

“You need to learn very quickly so it’s about finding the right people (to support you do this)… Are you getting the best back from your advisors to help you?… Get as much information as you can. Really think about what you want to get out of this. (We) understand you are strapped for cash, and we find the advisors and support.” Priya, Barclays.

“Get external views from experienced people that you can learn from. Find someone who’s done it before – most people will help you and offer advice. They don’t always need to be from your market and sector, sometimes the most insightful views come from people with a different perspective.” Chris, LDC.

4. Understand the investor and their needs

“Make sure you want that investor turning up to board meetings and talking in between and being helpful.” Kate, BGF.

“Try and understand in advance what each individual investor focuses on – it will vary across banks, VC and Private Equity investors, with variations of approach within these groups.” Chris, LDC.

About the Reading Tech Cluster (RTC)

The Reading Tech Cluster is a not-for-profit organisation designed to support growth and connect tech firms across the Thames Valley. RTC helps accelerate regional tech growth through collaboration, improved access to investment, talent, and expertise, and by building a thriving community of founders, investors, and advisors.