Pitching to investors is a nerve-wracking experience, whether it’s your first angel round, or you are a seasoned pitcher. Your pitch is the single most important thing that can take your project to great heights or send it plunging into the ground, and with so much on the line, it is crucial to get this pitch right.
According to AlleyWatch, the odds of success are not great. For every 100 pitches, angel groups receive only three ends up getting funded, which means that only 3% of entrepreneurs succeed in convincing investors. You can be one of that 3%, however, by crafting a pitch that turns heads.
Be Specific About Your Investment Needs
Be as specific as possible about your investment needs. We know that it can be intimidating to ask for an investment, given the chance that it could come up short but not be vague when it’s time to talk money.
Investors will want to know exactly what their investment will look like and feel confident that you’ve thought of everything regarding your financial needs. At the same time, it is essential to show them where you anticipate being after spending their money to build trust.
It will ease concerns and instill greater confidence in your business model and strategy, leading to tremendous fundraising success.
Prepare your pitch deck.
Creating an excellent pitch deck demands planning, purposeful design, and thoughtful word choice. If done correctly, it can act as a great visual complement to your presentation so that investors can visualize everything you are saying and stay engaged in your pitch.
Some great starting points for a pitch deck:
- The problem you want to solve
- Your proposed solution
- The ins and outs of your product
- Your target audience
- Your business strategy
- Your financials
- Your exit plan
Take less than 12-minutes, Including Time for Q&A.
As the age-old saying goes, time is money. The less time that your pitch takes, the better. Move at a good pace, and do not rush at the end.
A brilliant idea must be accompanied by a brilliant story. An engaging and captivating pitch that takes the image out of your head to be shared with investors. The more concise are, the more effective you will be.
Prepare for a Q&A because, at the end of your pitch, if investors are interested, they will have questions no matter how flawless you believe your pitch to be. If you can anticipate those questions and answer them, it will show that you are credible.
Nail Down the Details
It is vital to nail down all the necessary details during your pitch. Details including your business model, revenue model, the team, future projections, and more. After all, it would help if you convinced investors that you have a viable plan to create returns on their investments.
The data should be openly shared throughout your presentation and visually represented in your pitch deck. The more clearly and frequently you can present this data, the more confident an investor will be when deciding to invest in your company.
Your successes: Early traction and milestones
Take time to share details about the relevant milestones and traction that your company has made. Take the opportunity to boast, impress the investors with what your company and team have been able to accomplish, and create a complete picture of your business and its potential.
Touch point on what has already been done, and leave the conversation open to future accomplishments. Demonstrate what milestones you believe your company has yet to reach, and how additional funding will get there.