Pay to Pitch – Is It Worth It?

By Carol Tice
Exclusively for BVR Times

If you'd like to pitch some high-powered venture capital firms, be prepared to shell out thousands of dollars. In recent years, a trend has emerged of paying to pitch VCs.

Many people in the entrepreneurial community think this sucks. But the question is – should you do it? Is there ever a situation where pay-to-pitch makes sense?

The short answer is: Probably not.

Many are offended by the idea of boostrapping entrepreneurs having to pay to pitch the already wealthy. You're starting your company, operating on a shoestring, and venture capitalists would like thousands of dollars for 15 or 20 minutes of their time, just to hear your story.

Catching the most heat for pay-to-pitch has been top fee-collector Keiretsu Forum, which if you pitch all their levels you can end up spending $6,000. The woods are also bristling with expensive venture-capital get-togethers where you can pay to pitch the assembled crowd of VCs. Coming this month (April 2010), for instance, you can pay $4,500 to pitch at Young Startup Ventures in Boston.

Ideally, you should be able to avoid paying to pitch. Two reasons:

1) Most venture capitalists are not hiding behind iron gates somewhere. Many are fairly easily accessible, especially with the rise of social media. Many of the most high-powered venture capital firms, including Kleiner Perkins, Benchmark Capital and Sequoia Capital, don't charge business owners to pitch.

2) There are new, free opportunities to pitch VCs popping up. Along these lines, the Ewing Marion Kauffman Foundation – which has a mission of helping entrepreneurs – hosts "reverse VC pitch parties" in major markets around the country. The idea – venture capitalists come and talk about what they do, instead of vice versa. Sort of a more casual way to meet VCs that might lead to a free pitching opportunity.

Another recent development is the opening of the Venture Café in Boston, a coffeehouse near MIT where entrepreneurs can give 20-minute pitches to venture capitalists during scheduled free "office hours." Entrepreneurs are also free to just hang out at the café and just see who they meet.

Think before you pitch

If you still want to pay to pitch a VC firm, at least make sure you get the most out of it. Before you shell out thousands of dollars for the honor of a brief VC audience, ask yourself a few questions:

• How high-powered is the VC I'm paying to see? Might it be worth it for the connections and exposure?
• Is this VC a perfect fit for my industry and my business idea?
• Do I know any other way to connect with this VC or others at their level without paying?
• Do I have a well-developed, smokin' hot pitch ready to deliver?
• Can I show my business has customers, sales, huge market opportunity, and a business plan for using the funding?

In other words, is your pitch ready for prime time? Great pitches often get refined with practice – so find some free pitch opportunities before you even think of paying a big-league pitching fee.

If there's a VC firm that you think is an amazing fit for your business and industry but they charge to pitch, maybe you should think about paying, if your pitch is honed and ready. One fact pay-to-pitch detractors ignore: Plenty of owners have landed VC money this way.

Ultimately, only you can decide if pay to pitch makes sense for your company. But before you write a check, think how you're going to feel if you pay thousands and pitch…and come home empty-handed.