

Ask HN: Accepted into a pitch event - but were not sure we want to raise money - anonacc123

I originally applied because I love what my company is doing and I want to tell anyone who will listen and also to create relationships with investors so in the future, if we did decide to raise money we'd already have a rapport.<p>I asked for help with the exec summary from a friend who has raised ~$500,000 and he told me investors would never give us money for the reasons I had outlined. He suggested a slight pivot then created a whole back story for the pivot and while its somewhat compelling, it creates a entirely new set of problems and I'm not as passionate about the pivot as I am about how were progressing now.<p>I am positive there is a need for what were doing  in its current form and while we could definitely do it without raising money it would be helpful to hire a few part time people to fill in the gaps of the skills my cofounder and I lack. As opposed to finding someone who a) has the skills/drive required b) we click with c) in a financial position to work for equity.<p>So I guess my question is, should I:<p>1)Pitch the the company as it is now, and when asked what/why we need the money for come off as inexperienced.<p>2)Pitch the pivot version that I am less passionate, creates a whole new set of problems I haven't properly thought out and in a direction that more then likely we will not go.
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minalecs
#1. if raising funding is not your concern, and just receiving additional
feedback.. then I would think just pitch what you know and are passionate
about.

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us
Not a good idea. Some times your first chance is your only chance to make an
impression. If among any of these investors are people he would want to raise
from (and god I hope people are choosing their investors more carefully than
who is writing a check), he'll want to make sure he doesn't fund his first
impression by giving a bad pitch. He should only pitch if he feels he really
wants to and that he's practice his pitch to satisfaction. If he is just
looking for feedback and not funding, he shouldn't be pitching, but rather
approach it honestly and ASK for advice. This way it will seem less like a
pitch and more like open for suggestions.

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smallegan
Sounds more like a Poll...in which case #1 is no doubt the correct answer.

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jeffmould
Without knowing more about what your company does it is hard to give an
answer. In the state the question is in now you are asking if you should pitch
company A or company B, but not telling us what either company does.

My second question is you say that your friend says that he told you
"investors would never give us money for the reasons I had outlined." However,
you never outlined any reasons why investors wouldn't give you money. All you
have said is that you are happy about your company in the current
state/direction and that raising money would fill in gaps.

You also say your friend suggested a "slight pivot", which to me implies a few
minor tweaks to the business model, not an entirely new model. Further along
you say that the pivot creates a whole new set of problems, which to me
implies that these are more than minor tweaks to the business model. In my
eyes, a slight pivot would be something along the lines of a different or
expanded target market with the same product, but it sounds like your friend
is suggesting a completely different product.

Finally, I don't know you or your friend, so please do not take this
personally or the wrong way. Just because someone has raised money before does
not make them an expert in funding or in what investors want. That's not to
say, that the advice he gives shouldn't be considered with weight. But he may
be relating your product to his investors and believe that his investors would
not fund it. That is not to say that other investors may see the product in
its current state as a win. For validation of this theory all you have to do
is look at a VC like Bessemer. They even list their "anti-portfolio" on their
website of companies that approached them and they turned down.

What is more valuable to an investor is if you have a MVP, traction, revenues,
IP, etc... Personally, based on the info you have provided, I would pitch the
current company as it is. You don't need money because you are
"inexperienced". Reasons you need money could include, finishing development,
sales, marketing, etc... Prior to pitching I would outline how much money I am
looking for and how I would spend it. The investors are going to want to know
what their dollars are going to and for so you might as well have that info
ready. Pitching your idea in its current state at an event like this can be an
invaluable experience. You may find that your friend's advice was right on and
begin making the adjustments. Just because you pitch isn't a guarantee you are
going to raise money either way, so use the event as a chance to gain
experience pitching. You are not going to burn any bridges with a bad pitch,
and either way you will walk away with connections. You can use those
connections later to reach out for further meetings. Investors like to see
resilience and determination in entrepreneurs, and by taking their advice from
the pitch event and applying it to your business model, it will only make you
stronger and more valuable to them in the end.

