When it comes to startups, pitching always seems to be a difficult task. Besides, for every 1,000 pitches an investor views, only 100 startups are funded by them. From the number of pitches an investor receives, it is evident that they do not seem to have a shortage of the same. So, what possibly could be the reason for only a few startups being picked for funding?
Experts suggest that it all boils down to the startup story. If the founder’s startup story isn’t compelling enough, chances are the investors will turn a blind eye towards their pitch. An intriguing startup story is one that has a detailed background, the main character (founder), and the journey of the main character.
Here are 4 expert tips that will help you create the perfect investor pitch-
#1 Get detailed information on your value, investors, and market-
Before you start pitching, ensure that you have appropriate knowledge of these three core areas.
Value-Know what your value is. Have an understanding of what your definition of value is, the customer pain points you’re trying to resolve, and what makes your product/service worth purchasing.
To get qualitative data, start conducting user surveys, interviews, etc,. This will help get a better idea of what your target audience wants. Once you’ve got a hold of the qualitative data, start collecting early tractions like letters of intent, free trial sign-ups, engagement on social media, etc. You can include these in your pitches to add more credibility.
Investors- Research the investors you’re pitching to. Try to gain an understanding of who they are, the types of companies they have invested in previously, and what they’re looking for. This will help you secure better chances of investment.
Scan through their online presence to see if you have any possible mutual contact/interest. This can give you an insight into what intrigues them.
Market Size– This is, by far the most important element of the pitch. If you don’t have an estimate of what your target audience is and the size of this group, no investor will consider your pitch. Besides that, you should also know of the relevant trends, expert opinions, and your competitors. Having an in-depth understanding of the market will help you create a stronger pitch.
#2 Keep your pitch crisp and precise-
When telling your story, it’s common to digress from the topic. For example- You present a 30 something slide with only 10 slides talking about your story and the business, and the remaining is filled with irrelevant info. In this case, the investor won’t even bother to look at the 10 slides that talk about your story.
The layout of your pitch presentation is very important. It speaks volumes about you and your business. Besides, the harsh truth is that most investors are waiting to reject your pitch. Therefore, it is important to be mindful of exactly what and how much you want to share.
According to Guy Kawasaki, an appropriate guideline for the pitch is the 10/20/30 rule. As per the rule- Use 10 slides within 20 minutes, with 30 point font. The slides of your pitch should then be arranged in the following order-
Your Business Model
Demo of your product/service.
Marketing strategy & Sales.