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Resource for VC funding seekers: Entrepreneur Pitchbook from Canaan Partners

Just thought of sharing this excellent resource for the benefit of all startups that are raising venture funding. This is from Canaan Partners and they have created a kind of a workbook (called a pitchbook) that startups could use for getting their pitch decks in shape. Its almost like a fill-in-the-blanks exercise that everyone understands so well.

The pitchbook lends a structured approach to thinking about funding and how to build up your case for convincing those guys across the table. Different VCs may have different suggested formats, or outlooks they care for… nevertheless once you have been able to marshal your own thoughts, modifying the pitch to suit individual investors may not be far off.

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While on the issue of pitching for VC, I can’t help but bring up Guy Kawasaki’s classic “The Art of Pitching“. This deals with the actual communication style that one should adopt to appear convincing to potential investors (its not focused on the content of the pitch, rather the manner in which it should be delivered). He may not be off target… every idea needs to be sold… and there are numerous examples of good ideas failing to take off because they were not packaged smartly (either to investors or to customers)… take a look below and decide for yourself.

The Art of the Pitching

View SlideShare presentation or Upload your own. (tags: garage kawasaki)

Move over Sequoia… here’s the silver lining to the credit crisis

For all the dull gloom that the Sequoia presentation seems to have unleashed on the technology startup community, there are others who beg to differ from its ominous forebodings. While certainly nowhere in the same league as Sequoia, Altos Ventures, a mid-tier VC firm based out of the Bay Area challenges the postulates of the now (in)famous presentation with Peter Drucker’s prophetic assertion that “…..Entrepreneurs should love change; they are the beneficiaries of change, not the victims “ To be sure, people who need certainty are unlikely to make good entrepreneurs. But such people are unlikely to do well in a host of other activities as well – in politics, or in command positions in a military service, or as the captain of an ocean liner. In all such pursuits decisions have to be made, and the essence of any decision is uncertainty…”

Equally telling is this quote from the preso “….Foxes are great at raising capital – they thrive in bubble markets. Hedgehogs would rather bootstrap – they do far better during the inevitable crashes.”

Altos is giving an open arm welcome to startups seeking capital. According to them, less capital is required now than ever to build a great company. Check out the presentation below…

What does one make of this seeming contradiction? Well, recessionary trends can impact different segments of the economy in different ways. For a small/mid sized VC firm like Altos, this may actually be a great opportunity, since the downturn makes them more competitive than before for facing competition from top tier firms like Sequoia. Viewed against that reality, the presentation starts to make perfect sense.
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On the lighter side, do spend a few minutes going through this hilarious rejoinder to the Sequoia presentation. Ostensibly from a VC firm called Whiner Jerkins (think Kleiner Perkins), the presentation is funny down to the last slide..