Some of you may have heard the term “reverse pitch”. Here is more insight on the same.
A reverse pitch is an event where larger organisations pitch a business plan or concept to smaller entrepreneurs or companies, i.e. the roles are reversed. This is generally done in an effort to sell funding and partnership opportunities to the smaller company.
There are different categories of reverse pitches;
– Enterprises to entrepreneurs
– Venture capitalists to startups
– Financial institutions to startups.
It’s usually, because there are challenges that the larger organisation would like to see addressed with the help of these smaller organisations.
In this process there is a benefit for Startups
– Reverse pitches help smaller organisations focus on their business plans. The larger organisations pitch the problems that they have wherein the smaller organisations can provide a specific solution.
– Venture capitalists have a lot of capital but only give it to startups and entrepreneurs that they deem are most worthy of it. Unlike where a startups pitches to venture capitalists, in a reverse pitch venture capitalists sell their funding capabilities to the entrepreneurs. They follow this practice to get connected to subject matter experts who can assist in business growth. -.
– Financial institutions also reverse pitch to small organisations because the world of Fin tech is growing and small businesses provide apps that large financial institutions can use for selling and build their company revenues and grow clientele base.
Similarly a pharmaceutical or an automobile manufacturer giants may see value by collaborating with startups or their smaller initiatives that can be inducted into the larger initiatives and create a bigger go-to market opportunity.
Reverse pitches create opportunities for entrepreneurs and small businesses, foster partnerships as well as even provide resources and collaborations that previously would not even be thought of.
India is one of the world’s largest startup hubs. Larger companies can perform reverse pitches in India to the countless startups that exist; most of these startups are tech startups focusing on concepts like Big Data, Machine Learning, Artificial Intelligence and Internet of Things, concepts that are on the rise in today’s world.
Just recently, in October, there was a reverse pitch session in Noida where a few large investors came and pitched to startups. However, this is not enough. India, being the world’s 3rd largest startup hub, should have far more reverse pitches and events like these if the startup ecosystem is to grow even more. Overall, one can see the potential advantages that reverse pitches can provide in India, be it through organisations, large MNCs or even venture capitalists; the benefits are abundant, especially for a country with over 8,900 tech startups.
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“Anshu (Sudhanshu Srivastav) is a Mentor, Advisor, LP and Founder with a history of accelerating revenue acquisition for start-ups and planning growth strategies. He is very active with the start-up eco system including VC’s, incubators, accelerators and early stage ventures.