I just finished reading an email asking for people to volunteer for a panel to give students feedback on their startup idea, and that made me reflect on the whole idea of pitching an 'idea'. I generally find that having people "pitch their idea" to a panel for feedback isn't that helpful. The panel has no better crystal ball than the entrepreneurs - or than investors.
Some data: according to the Kauffman Foundation, approximately 80% of new venture investments are bad investments. Translation: even after doing due diligence, angel investors are, on average, wrong 80% of the time. And that's after doing due-diligence. A panel listening to a pitch isn't likely to do better than angels that have done due diligence. So for the entrepreneur who is pitching an idea - how useful is feedback that comes from people who are wrong 80% of the time?
I'd... Read more