How successfully pitch to us investors?
Here is a short guide on how to prepare your investor pitch. Our team is being approached by a lot of start-ups and unfortunately the majority of them fail very early in the process because they did not do their homework. If you would like to get the attention you deserve, please make sure to follow these tips.
1) Capture our attention within the first 90 seconds
Start your pitch by telling us everything you are going to tell us during your presentation. This should cover the market potential and the share of market you expect to capture; the need for your product or service; the ways in which your business will transform that need into a business opportunity; your competitive edge; and the amount of money you’ll need.
2) These are the key issues to be included in your pitch deck
Which problem are you going to solve? Forget about feature lists and tell us instead which problem your company is going to solve. Make us believe that the world cannot live without your product or service and convince us that you understand your buyer’s needs.
What is your solution? How are you going to solve the problem? Outline the features and capabilities of your service or product.
Describe your business model: Where are your revenue streams coming from? What is the underlying magic or technology you are going to use?
Define the market and its potential: We want to know that you understand your market and that the market has big potential. Tell us its size, characteristics, growth potential and trends.
Have a unique marketing strategy: How is your target market going to find out about you? Explain in more detail positioning, pricing, distribution channels, sales, advertising and PR. How do you get early adopters to advocate your offering and can you trump with strategic alliances that help you penetrate the market faster?
Analyze Your Competition: Show us that you know your competition well, explore their strength and weaknesses. How are you going to beat them and what is your competitive edge? Do you own any patents, copyrights, proprietary processes or technology, exclusive licenses or agreements? And by the way, do not tell us that you do not have any competitors. Having no competition usually means there is no market, which in turn means we are not interested in investing.
Who is on your team? Proof to us that you work with the best heads in your industry or that you are able to convince them to work for you.
Your projections: Give us an estimate of number of customers, key accounts or users as well as revenue you are planning to generate within a certain timeframe.
The status and timeline: Where are you now and which are your milestones for the near future?
Summarize and give us a call to action: Before we go into discussions summarize your points and tell us exactly what our next steps should be.
A typical pitch presentation lasts one hour of which you present for twenty minutes and spend 40 minutes on discussion. We highly recommend using Guy Kawasaki’s 10/20/30 rule: 10 PowerPoint slides lasting 20 minutes in a font no smaller than 30 points.
Create emotional impact by telling a story (i.e. who are your typical customers and what are their pain points?) and using appropriate images and graphics.
4) Be prepared to answer questions
You can most certainly expect a number of questions. How tough you’ll find answering them depends on how well you prepared your pitch. You need to be able to explain your business model and assumptions and how you came up with the numbers in detail.
The more you practice your pitch and the better prepared you are the more eloquent your presentation will be. Not only will that help in managing your pitch fright, it will also show us that you take us seriously and appreciate us taking our time to listen to you.
The more authentic you come across, the more credible you will be for us. And credibility is the most important factor in any investment decision.
A fun and clever summary of getting the VC pitch right