Sometimes you only have a few minutes in hand to pitch your startup idea to the investors and if you want to have all their attention, you need to present a solid pitch.
Now, you can only present a solid pitch if you have rehearsed it over and over again before presenting your startup idea.
There’s nothing more depressing than being told, “I only need 10 minutes of your time,” and then 20 minutes later you’re still on slide number 4. The ultimate goal is to get investors interested in your concept. Mentioned below are few points which will aid you in your next investment summit.
Initiate your pitch with a fascinating story. This will get your audience interested in your pitch and if you can relate your story to your audience, even better! Your story should address the problem and present a potential solution to it.
Explain what’s unique about your product/ service/ solution and how it’s going to deal with the issue persistent in the market. Keep it short, concise, and easy for the investor to explain to others. Avoid using funky words unless your investors are very familiar with your industry.
Initially in the presentation you want to gain some credibility. Dedicate some time to share the relevant traction you’ve had. This is your opportunity to grab everyone’s attention! Impress the investors with what you and your team have accomplished to date.
This is usually one of the most skipped sections of an investor pitch and a full business plan. How will you reach your customers? How much will it cost? How will you calculate success? Your financials should easily allow you to calculate your customer acquisition costs.
This is a very crucial part of your pitch, and many people neglect this section or don’t furnish enough detail about why they’re so different from their competitors. The best way to communicate your value proposition over your competitors’ is to show this slide in a matrix format—where you list your competitors down the left side of the page, you have your features/benefits across the top, and place check marks in the boxes for which company offers that service.
Investors are most inclined towards this slide of your presentation. How will you monetize? Be very specific about your products/ services and pricing and emphasize again how your market is discreetly awaiting your arrival.
Showcase what you’re projecting over the next three to five years. You must back-up your numbers by sharing your assumptions. You’ll see investors doing calculations in runtime to ensure your numbers make sense, so give them the information they need to evaluate that your calculations are accurate.
Clearly spell-out how much money has already been invested in your company, by whom, ownership percentages, and how much more you need to go to the next level. Allow the audience to understand why your management team is capable of managing their investment for growth. This slide needs to be very details and accurate. Do not forget to include how much you need, why you need the money, what it will be used for, and the intended outcome.
If you’re seeking large sums of investment, majority of the investors would like to know what your exit strategy is. Are you planning on getting acquired, going public, or you have some other plans? Show you’ve done some due diligence on this exit strategy, including the companies you’re targeting, and why it would make sense 3, 5, or 10 years down the road.
Best of luck pitching your business! And remember do not chicken out when pitching your idea. Have fun and enjoy the session, even if it does not work out the first time there is always a next time. Also, remember do not lose hope and never give up until you get the right investor by your side.