If you’re a startup founder, sooner or later you’ll likely want to deliver a bang-up pitch to someone whose support you seek. Whether you’re making your case to a venture capitalist, angel investor, banker, startup accelerator, or even just rich old Uncle Morty, you’ll need to put your best foot forward.
Some of the audiences you’ll pitch to — like VCs and angels — are famously hard to read. Their decision-making may be based as much on hunches or inspirations as it is on hard facts. There are many factors in funding decisions that applicants aren’t privy to, from bad moods to prior successes and failures. And many of those you approach will say no. Only 0.05 percent of startups get VC funding every year.
While you can’t read these people’s minds and you may feel intimidated by your odds, there’s tremendous value in crafting and delivering a solid pitch you’re proud of. Not only will it increase your chances of gaining support, but it will also help you refine your own understanding of your business operations and goals.
Here are some tips for delivering the best pitch presentation possible to help you nab one of the almost 3,700 VC investments made every year — or funding from another source.
How to Pitch Your Startup to Investors
1. Make a great pitch deck
Refine, refine, refine. Think short and sweet: 10-12 slides at most. A power-packed presentation should make your mission clear and include the targeted specifics important for your proposal.
2. Get to the point
Funders are looking to be wowed. When planning your presentation, get to the meat of it right away. Make your most important point first and then use the rest of the time to explain and bolster your point.
3. Know your audience
Do some research on the funders you’re meeting with before you arrive. Check out their portfolio: What is the size of companies they tend to fund? What stage are these companies in? Do they fund at the level you’re looking for? What topics interest them most?
4. Understand your market
Go deeper than knowing what types of people you think will buy from you. You should present specifics of how your market will likely look in three or four years. Your audience will be much more likely to fund those who have great clarity on where they see their business going in future years.
5. Bring solid financials
Do the hard work and get your financial house in order before pitching. Give them the metrics they’re looking for — don’t do any sleight of hand like substituting 'quarterly' MRR for monthly MMR to give the illusion of higher numbers.
6. Be transparent
Funders want those they fund to be up-front about the details of their business. Arrive ready to talk about your customers, including details of how many there are, and which ones are paying you what.
7. Admit your vulnerabilities
Funders want to know where you’re vulnerable, and they want to know you can see it too. You should present information about what advantages your competitors currently have, or could have, if the market winds change direction.
8. Be a pro
Of course, you want to catch investors' attention, but make sure not to overwhelm them with overeager enthusiasm. Approach the situation with restraint, confidence, and professionalism.
Following these tips will put you on the right footing to present your idea with power and passion. Make it easy for discerning investors to say ‘yes’ by thinking carefully about why your company should inspire them with confidence. Bring your A-game to your startup pitch to give yourself the best chance of finding a deep-pocketed backer.