Issue #2. Inside a VC’s Head: How I Evaluate a Startup Pitch in 10 Minutes
Have you ever wondered how VCs decide whether to invest in your startup—and so quickly?
Welcome to Seed to Scale ! I’m Swapnil J and I write weekly about venture capital, investments, fundraising and my personal experiences as an investor. Subscribe for free to receive new posts and support my work:
The truth is, most venture capitalists make their initial decision within the first 10 minutes of a pitch. It’s not about being dismissive; it’s about efficiency. With so many pitches to hear and limited time, we’ve developed a framework to quickly identify whether a startup has the potential to make it big.
Let me take you behind the curtain and show you what goes on in those crucial first 10 minutes. Spoiler: it’s not magic—it’s pattern recognition.
The Setup: A Real-Life Example
A few months ago, I met a founder at an early-stage pitch event. Let’s call him Ravi. Ravi’s startup focused on creating AI-powered tools for small businesses, which is a space I’m particularly passionate about.
He had 10 minutes to pitch. By the end, I knew we needed a second meeting. What made Ravi stand out? Let me break it down.
Minute 1-2: The Problem
The first thing I evaluate in a pitch is whether the problem they’re solving really matters.
What I’m looking for:
Does the founder articulate a pressing pain point? Do they clearly explain why this problem demands a solution right now?What Ravi did well:
He opened with a story about a small business owner spending 20 hours a week managing finances manually because they couldn’t afford expensive software. He tied this to a $10 billion underserved market in need of affordable automation tools.
🚩 Red Flag: Vague problems like “We want to make X industry more efficient.”
✅ Green Flag: Specific pain points with real-world examples.
Minute 3-4: The Market
After the problem comes the market. No matter how compelling the problem, if the market is too small or stagnant, the opportunity won’t excite investors.
What I’m looking for:
Is there a large, growing market? Can the startup capture a meaningful slice of it?What Ravi did well:
He showed data that the market for small-business AI tools was growing at 15% annually and highlighted adjacent markets his product could expand into later.
🚩 Red Flag: Founders who underestimate market size or don’t provide data.
✅ Green Flag: Strong total addressable market (TAM) analysis and clear growth potential.
Minute 5-7: The Team
Execution is everything in startups. Even the best idea won’t succeed without the right team to bring it to life.
What I’m looking for:
Why are these founders uniquely qualified? Do they complement each other’s skills? Are they passionate and adaptable?What Ravi did well:
Ravi’s team included a former product lead from a top SaaS company and a CTO with a Ph.D. in machine learning. He also shared how they’d worked together on smaller projects before starting this venture.
🚩 Red Flag: A solo founder with no clear plan for building a team.
✅ Green Flag: A cohesive team with relevant experience and a track record of collaboration.
Minute 8-10: The Traction
Traction is where the pitch gets real. This is the moment where data replaces dreams.
What I’m looking for:
Evidence that the idea works. Early revenue, user growth, partnerships, or anything else that proves market demand.What Ravi did well:
He shared that they had signed up 500 small businesses for a beta version of their tool, with 40% converting to paying customers. He also mentioned partnerships with two small-business associations.
🚩 Red Flag: “We’re still in the idea phase but have big plans.”
✅ Green Flag: Tangible proof points, even if they’re small.
Why Ravi’s Pitch Stood Out
By the end of Ravi’s 10 minutes, I wasn’t just interested—I was excited. His pitch worked because he didn’t waste time on fluff. He addressed the four key areas that matter most to VCs: the problem, the market, the team, and the traction.
My Lesson as a VC
Over the years, I’ve learned that the best pitches don’t just inform—they tell a story. Founders, your job isn’t just to sell an idea; it’s to make us believe in your story.
And if you’re wondering, yes, we invested in Ravi’s startup. Today, they’ve grown their customer base tenfold and raised a successful Series A.
For Founders Reading This
Are you preparing your pitch deck right now? Make sure it answers these four questions upfront:
What problem are you solving?
How big is the opportunity?
Why are you the right team?
What proof do you have that it works?