If You're a Startup Looking for Funding, these Are the Only Pitching Tips You Need
January 20, 2021| Joyce Ibrahim
When it comes to pitching, the odds can seem like they’re up against you from the get-go, especially when you know that investors look at pitch decks for only 3 minutes and 44 seconds. It’s also reported that for every 1,000 pitches an investor hears, they will only fund 100 companies, slimming your chances down further.
And with an extremely restricted time-frame to hold potential investors’ interest and win them over, your pitch is crucial to your success.
As the competition for investors’ attention continues to grow, successfully attracting capital requires a strong, compelling pitch that convinces investors to get behind your startup (rather than the other 100 businesses also seeking their capital).
Here are our top tips to perfecting your pitch and win investors over.
Make an unforgettable story out of your pitch
Storytelling is a buzzword that popped up a few years ago, and that could be here to stay, and for good reason. Storytelling has been proven to capture any audience’s attention, and hold it. And most importantly, it helps your pitch stand out from all the rest.
Remember that investors have been hearing pitch after pitch as a part of their daily activities. And while spreadsheets, valuations, and figures are undoubtedly important to showcase, VCs can have access to this information anyway.
Instead, use the little time you have to take investors through the story behind your product, the rationale behind your process, and the people behind your success.
Keep it short, clear & focused
Because time is of the essence, it pays to cut through superfluous talk and develop a focus on the core elements of your pitch. By respecting investors’ time, you show them that you respect their mindsets, and thus, their investment.
Be precise about whatever it is you are explaining, and provide concrete examples when possible.
Explain exactly what your product or service is, who your target audience is, and how you plan to reel them in. Showcase your offering through pictures, graphs, or give investors a product to see for themselves. But remember not to get lost in stories about the product/service itself, rather focus on how it can make an impact, and more importantly, how it can make them money.
Perfect your pitch deck
This table, from Guy Kawasaki’s The Art of the Start, summarizes the key information that should be included in your startup’s pitch deck.
Remember the “10-20-30 Rule of PowerPoint”: Give your presentation in ten slides, during twenty minutes at most, using at least a 30-point font.
|Title||Include your business’s name, your name and title, and contact information.|
|Problem||Explain your investors the pain that you’re alleviating. The goal is to get everyone nodding and buying in.|
|Solution||Describe how you alleviate this pain and the meaning that you make. Ensure that the audience clearly understands what you sell and your value proposition.|
|Business model||Explain how you make money—who pays you, your channels of distribution and your gross margins.|
|Underlying magic||Describe the technology, secret sauce or magic behind your product or service.|
|Marketing and sales||Explain how you will reach your customer and your marketing leverage points.|
|Competition||Provide a complete view of the competitive landscape. Too much is better than too little.|
|Management team||Describe the key players on your management team, board of directors and board of advisors, as well as your major investors.|
|Financial projections and key metrics||Provide a three- to five-year forecast containing not only dollars but also key metrics, such as number of customers and conversion rate.|
|Current status, accomplishments to date, timeline and use of funds||Explain the current status of your product or service, what the near future looks like and how you’ll use the money you’re trying to raise.|
Your pitch deck should fit in with your business plan, but don’t let it be a copy of your plan. Instead, you can use your business plan to guide the structure and key-points of your startup pitch, while making sure the content flows well and remains engaging.
Are you a startup in need of funding, but don’t know where to start? Get in touch with Brakket Invest to find