Success or failure is often determined by how we perform during pressure situations. For a budding entrepreneur, this situation mostly involves pitching the startup/idea to a venture capitalist which can make even the most level-headed entrepreneur immensely nervous. After all, this is a make or break moment. In such situations, confidence and self-belief certainly matters and can maximize the chances of securing funding. Here are six tips for a successful investor pitch:
Focus on the important: When you have just 10-15 minutes, you certainly can’t present things that are even slightly unimportant. As an example, talking too much about ‘future projection’ or ‘market/industry size’ does not make much sense. Investors are not interested in knowing future projections that go beyond 5 to 6 years. This is because most VCs look for an exit within this time period.
Highlight statistics and data of your company: The one thing that triggers investor interest is how close your startup is to break-even. Realistically speaking, most startups won’t be anywhere near. However, decent traction in customer acquisition and revenue is like an irresistible gamble for most investors.
Limit the slides in power point presentation: Simply put, don’t present more than 6-8 slides. VCs hear countless pitches frequently, and hence have a short attention span.
Crisp, focused content for pitch presentation:
• Pain point that your startup is trying to address
• Size of the market the startup is trying to capture
• Sustainable revenue model backed by realistic data and assumptions.
• Brief description of the management and work culture at your startup
Position USP as the cornerstone of a winning pitch: If your product/service has a unique feature that stands out amongst competition, make it the focal point of your pitch. In case the investor is convinced that this is unique enough to win sizeable traction in the market, then you’ve probably won half the battle.
Which entrepreneur does not want to impress VC’s? However, one must not go over-board and be natural. VC’s with their rich experience and in-depth knowledge are quick to spot fake confidence.