When pitching to investors you must remember that every time they put their money into a new idea or project they are gambling. As someone with an idea, it is your job to make sure they feel comfortable investing in not only your product but yourself. You will need to prove to them the upside of what they can gain, but also be extremely clear of what they could lose and their odds in the process. This is a holistic view of what you do, not just the one good idea that you have presented in front of them. When making an investment pitch, make sure not to leave these very critical points out.
You should always start off with the vision. Make sure this is simple and to the point, by giving investors a clear picture of what it is you want them to invest in. This is an elevator pitch, so make sure it is short but concise.
Always put the problem at the beginning of your pitch. Explain the ‘why’ behind your business while introducing your target demographic and the issues that they face. Make sure you tell exact problems that customers face, and why they need to be solved. This is just as important as the vision. Investors want to feel like they are solving a pain point, not investing in something that isn’t needed.
If you are going to present the problem to an investor, you must present the solution also. Go through the specifics of what your product has to offer and how it is different from others in competition with you. Make sure you have a clear and unique alternative to the options that are already available and stress how your product is able to fix the problem that was previously presented.
The Business Model
It is vital to your pitch to clarify how you will make money from your product or service. Investors will not be interested if the numbers aren’t correct. If you are not able to generate revenue, they will not be able to make their money back. Answer questions in regards to who will pay for it, how does your pricing fit into existing landscapes, and are you a premium offering or budgeting option.
Everything you’ve said thus far has set you up for this moment. Deliver a strong approach when asking for a specific amount of money, and make sure you reiterate where the funds will be used. By this time, investors will either be in or out, so do not be surprised if you do not get offers from each one. Make sure you are clear in the funding needed, and be prepared to talk about timelines also. Investors are eager to invest, but also eager to recuperate the money that they put out.
If you make sure to cover these 5 talking points during your investment pitch, you will increase your chances of getting the deal that you want.