Member-only story
How Do You Tell Investors Why You Will Beat Your Competitors And Not Appear Defensive?
“They brought up companies we didn’t even know existed,” Mike, the managing partner of the VC fund, said in our debrief after a startup pitched to the Venture Capital partnership where I was an Entrepreneur in Residence (EIR). Everyone was impressed with the CEO and the company, so we decided to continue forward with the investment.
There’s a natural tendency when you’re asked about your competition to say something negative about your competition. However there’s a better way to explain the competition.
You need to recognize you have a golden opportunity to explain your position in the market when you explain the competitive landscape.
The CEO I watched explained the competitive landscape in a masterful way. He didn’t shy away from the competition. Instead he embraced the competition.
Remember, you have the ability to frame the discussion about the competition on your terms when you present your competitive analysis. The best example I’ve ever seen in the public domain is LinkedIn’s Series B pitch.
Take a look at what Reid Hoffman, LinkedIn’s CEO at the time, did in three incredible slides:
