The do’s and don’t's of pitching for business investment

Here is an article which might be worth hanging on to for the start of next term, when new students start on their Business Studies course. The BBC has spoken to three venture capitalists - not the well-know Dragons, but some different names: the founder of Google Ventures, and managing partners of two funds based in India and in New York. They compare what they look for in a startup, what they avoid, and the best way for businesses to approach them.

What they look for varies between the three, but the theme of commitment and a genuine reason for passion about the business is common to them. What they avoid is more varied, from people who don't listen, to people who want to take a large salary out of the business, and to 'people who need us too much'. However the greatest agreement is over the best way to make an approach, as they all seek out entrepreneurs who are recommended to them rather than those who approach them direct. As Bill Maris of Google Ventures puts it, "We don't take cold calls as we would never be able to keep up with the volume and wouldn't be able to give each one the time it deserves. The best ones will find a way to know someone on the team and get referred in." So working the network is crucial, while simply sending in a CV and Business Plan is never going to work.

The article links to a page which introduces The Next Billionaires, with items about several entrepreneurs. This includes a range from the founders of WhatsApp to Dr Dre, and from Guo Guangchang, China's answer to Warren Buffett, to Thomas Suarez, a 15-year old who started his first business when he was 11. There is a good opportunity here for a homework research task early in the AS Business Studies syllabus next term, asking students to see what they can find out about a couple of the entrepreneurs and do some early compare-and-contrast work.