- Persuade & Raise
- Posts
- ♞ Generalist vs Specialist VC?
In partnership with
Generalist vs Specialist VCs
Recently I’ve had a lot of readers asking me about whether they should be pitching to Generalist or Specialists VCs. This has become an increasingly common concern especially as many generalist/tech/software VCs have been narrowing their focus to AI over the past few years.
The reality is that when markets are strong (think 2021), you should be focusing on specialist VCs. As a general rule, you’ll likely have more success pitching your company to a specialist VC that understands the problem and solution you are presenting. Especially as technology becomes more complex and segmented (as a generalist investor myself), I can confidently say that many generalists are overwhelmed by pitches that require a higher level of industry expertise than they have.
However, in a market with tight cash like today, I always recommend that you pitch to both generalists and specialist VCs. This is simply because fundraising, at its core, is a numbers game. When there is lots of cash available and the odds of any pitch hitting is high then it makes sense to stack the odds with a specialist investor but when the odds of hitting are already low its better to go for volume.
That being said, what are the differences?
 | Raise Venture Capital in 2024 Don’t fall behind in the fight for venture funding! |
Expertise - In my experience, generalist VCs tend to have a far better “business” background. They can help with your board, strategy, etc., on a high level, similar to a management consultancy firm. Specialists on the other hand tend to have a professional background in the industry in which they specialize, this often means more support from an technical/engineering perspective.
Knowledge - Generalist investors generally need to be treated as if they have no knowledge about your industry. They hear pitches from every industry and often only have insights into a handful of interesting or common industries. When you go to pitch, it’s your job to explain the company very simply and provide all the background information they need to understand the pitch. Specialist investors are the exact opposite. While you should keep your attention deck simple, once you get into the room with them, you should be able to carry on a conversation with them that has significant depth, as they will have lots of knowledge about your industry.
Have you raised from specialist VCs? |
Intercom for Startups
Join Intercom’s Early Stage Program to receive a 90% discount.
Get a direct line to your customers. Try the only complete AI-first customer service solution.
Are you looking to grow your business? Here is how I can help:
📢 Promote your startup to 2,000+ VCs including investors from a16z, YC, Techstars, Rarebreed, Sequoia and more.
📱 Book a Strategy Call to get 1:1 feedback on your pitch, pitch deck and/or fundraising strategy. (If you need general startup advice, then reply to this email, and I’ll let you know if/how I can help.)
📺 Access FundraiseOS, the ultimate fundraising course with video lessons and practical worksheets helping with everything from deciding how much to raise to understanding a term sheet.
💸 Promote your product or service to 100,000+ entrepreneurs.
🌐 Connect with me on LinkedIn or X (formerly Twitter) to get access to new content about startups, fundraising, venture capital and more every day.
Onwards and Upwards,
|
|
