Iconic Shift Logo

<< Back to Blogs

Pitching to Smart Investors

Pitching to Smart Investors

Smart investors are professionals like VCs or experienced angel investors - often part of angel networks. They buy after taking a rational view of the business prospects and a subjective view of the commitment/enthusiasm of the people concerned.  

The first thing to be aware of is that smart investors know the odds. So they will be sceptical and challenging. Don't let that put you off. If you have put time and effort into your pitch you will be so much clearer and compelling than 90% of the people they see that you will really stand out.

Here's the golden rule , specifically for investment pitches, in the first 60 seconds tell them:

  • What your business does and why it meets their investment criteria
  • How much money are you looking for
  • What size stake are you offering
  • How big could this business be in 5 years time (customer, revenues, profit)
  • Why, in a sentence, there is reason to believe you

Then give them enough facts about you, your team and your business to build sufficient credibility to be heard.

Using the next hour effectively

  • Aim to speak/demo for no more than 30 mins to allow sufficient time for questions and discussion
  • Know that  smart investors primarily invest in teams of people - it's the credibility and commitment of the team you put forward that will be the most important thing. If you don't have a team you will have to explain the sort of people you will recruit and how. If you don't have  a team always talk in terms of I will do this etc. If you have a team use I and we to distinguish what they can rely on you personally for and what the team is accountable for
  • After that it's the product they want to hear most about
    • How big is the potential market (ie what problems does it solve and for whom)
    • How believable is the solution - can it become and stay a market leader

So here is how I pitch to smart investors

  • Introduction (remember the golden rule)
  • People
  • Solution/product  in detail
    • How the product works ie how is it is built/sourced/delivered /maintained
    • demo/video/brochures
    • how you will beat and continue to beat the competition
  • Total Market size for your offering
  • Your Target Market and why you are focusing on them (this is the problem bit of perfect pitch ie what problem are you solving and for whom, but you need to quantify it here)
  • Marketing/Sales approach ie how you will get customers / sell products and how much each sale will cost
    • This is an opportunity to talk about the brand you are building -ie  the reputation (what you want to be known for) and the experience (how you leave people); it's the best opportunity in the pitch to intoxicate them with your enthusiasm without appearing deluded.
  • Business Model ie how you make money - product pricing and volumes, product costs, overheads; 
  • Development Plan - where you are now, key developments and milestones
  • 5 year Financial Projections (product volumes, P and L and cash flow) with key assumptions
  • Funding Needs for next step



Share This >>   Twitter  Facebook  Pin it  LinkedIn


comments powered by Disqus