The Perfect Investor Pitch, Part 1

At Angel Investment Network, we’ve watched a lot of pitches in our time –
some good and some bad. Here is some of the advice we give our members on how to perfect their investor pitch. 

Key Points & Tips

  • The best way of thinking about writing a Pitching Presentation is as an “Elevator Pitch”. As the name suggests an elevator pitch should be possible to deliver in the time it takes to ride an elevator, focusing on this makes the pitcher more precise. Make every point count.
  • Start with “a hook” – a statement or question that grabs the investors’ attention and makes them want to hear more.
  • Explain exactly what your service or product does. We often hear investors saying they had no idea what the company actually does, as it gets lost in qualifying statements and fancy figures. It is hugely unlikely investors will invest in a concept they don’t understand.
  • The investors won’t expect you to cram everything into your 8-minute pitch. It is often the people with the most concise pitches have the most interest afterwards.
  • Tell a Story. Your pitch must not be a checklist of impersonal facts and figures. When you tell the story of your business, you bring it to life in an engaging, memorable way. Stories make sense and persuade in a way that a list of facts and figures can’t.

Timing

  • Time is limited, so make sure you can summarise your business within the allotted period.
  • Think hard about what your key message is and cut out all unnecessary detail.
  • Don’t get bogged down with the technical details – just tell them what it does. i.e. Walls Sausages, they don’t need to know how the pig was killed just how the sausage sizzles.
  • Don’t repeat yourself.
  • Don’t go off on a tangent, as every sentence counts.
  • Think about how much time you will allocate to each of the sections we mention below – play to your strengths.

Presentation Style

  • Speak clearly.
  • Use the Power of the Pause.  When a speaker pauses while delivering a presentation, it conveys confidence and control.
  • Conversely, someone who speaks at a hundred words a minute conveys nervousness, pause and give your audience a chance to digest your key points.
  • Be enthusiastic – Investors expect energy and dedication from entrepreneurs.
  • Don’t use acronyms or technical jargon.  Everyone should be able to understand it.
  • If you’re not an experienced public speaker, don’t be afraid to read from cards but make it a deliberate confident decision to do so, indecision will count against you.
  • Don’t simply read what is on your PowerPoint presentation (this should only contain visuals and bullet points).
  • Gestures and body language (e.g. nodding and smiling) are very important.
  • Look your best!

Practice, Practice, Practice!

  • Can you do it within the time limit?
  • Did everyone understand it?
  • Ask family, friends and colleagues for feedback.
  • Did it convey the desired message?
  • The more you practice it, the more relaxed you’ll be when you’re in front of the investors.
  • Our training session will be a good ‘Dress Rehearsal’ so please be fully prepared.

What should I include?

Below are the key points that Investors feel are most valuable to your presentation. The following slides will serve as a template and provide worked examples in each instance.

  • Pain or Problem?
  • Premise?
  • People?
  • Proof?
  • Purpose?

For more info about what to include in your investor pitch, come back next week for The Perfect Investor Pitch, Part 2.

Angel Investment Network’s Weekly Twitter Roundup

Angel Investment News

Business Plans & Pitching

Fund Raising

Marketing & Social Media

Start-Up & Entrepreneurship

To stay updated, come follow us on Twitter: http://twitter.com/angel__network.

Read anything interesting? Feel free to add links to any articles or resources you’d like to share with the angel community.

Angel Investment Network’s Weekly Funding Roundup

Here’s a roundup of some of the recent seed-stage and angel deals from around the world: 

  • Jeevanti Healthcare, who are looking to start small-scale or secondary hospitals in Maharashtra and Gujarat, wins $2.2m from Seedfund
  • Ashton Kutcher – heartthrob, angel investor & Twitter master – has invested in Airbnb, a global network of accommodations offered by locals
  • Fotomoto, which offers an innovative way for photographers, artists & content publishers to sell images online, wins $1.2m Series A funding
  • zeedna.com, an online social publishing and ecommerce platform and a Baraka Venture portfolio company secures angel funding
  • Vaccine developer Arbovax Inc. has raised $1.74 million from nine investors in its $2 million equity offering.
  • inStream Media, creator of a marketing tool that merges retail point-of-purchase advertising with mobile messaging, raises $1.38m funding
  • Resilient Network Systems, a security & networking startup targeting the healthcare industry, wins $5m from Alsop Louie Partners & Angels
  • Radisens Diagnostics, which makes a portable diagnostic kit for doctors to quickly diagnose a range of complaints, lands a €1.1m investment
  • Activation Media, a pioneer in immersive, cross-platform entertainment, has landed seed funding from a group of private investors
  • Data tracking startup Mixpanel raises $1.25 million from Sequoia, Rabois, Levchin, and Birch
  • Benzinga has received investment from Lightbank, the technology investment fund started by Groupon co-founders Eric Lefkofsky & Brad Keywell
  • Saygent, a start up that is developing a crowdsourcing- powered automated voice response & analysis platform, has raised $1m in seed funding
  • BuySimple raises $700K seed funding from investors including Farhad Mohit, founder of Shopzilla & Gripe, and Jack Abraham, founder of Milo
  • ValueAppeal, which provides home owners with an online property tax appeal service, lands an additional $1.6 million from angel investors

To get regular updates, come follow us on Twitter: http://twitter.com/angel__network.

Have you managed to raise capital for your company?  We always love to hear from entrepreneurs who manage to get funded.

 

Angel Investment Network’s Weekly Twitter Roundup

Angel Investment News 

Business Plans & Pitching

Fund Raising

Marketing & Social Media

Start-Up & Entrepreneurship

To stay updated, come follow us on Twitter: http://twitter.com/angel__network.

Read anything interesting? Feel free to add links to any articles or resources you’d like to share with the angel community.

Angel Investment Network’s Weekly Funding Roundup

Here’s a roundup of some of the recent seed-stage and angel deals from around the world: 

  • Mobile data application provider Onavo closed a $3 million Series A financing round led by Sequoia Capital and Magma Venture Partners
  • iOS publisher/analytics provider Fuse Powered raises a $2 million seed round of funding led by BlackBerry Partners Fund and NFQ Ventures
  • WaterSmart Software, a water efficiency startup, has closed a $900,000 seed round of financing led by Menlo Incubator
  • Saygent, a SaaS startup that helps companies figure out the sentiment behind customer voice responses, has raised $1 million in seed funding
  • Brighter.com, a website that allows people to compare dentists based on reputation & price, raises $5m Series A funding led by Mayfield Fund
  • Axxun Inc has closed its second $100,000 angel investment under the State of Connecticut’s Angel Investor Tax Credit Program
  • VYou, the developer of a conversational video platform, wins $3 million Series A financing led by RRE Ventures & Highland Capital Partners
  • Unsocial, a business networking tool that enables people to find each other based on search criteria and proximity, obtains seed funding
  • A new social travel start-up Gtrot, has raised seed funding from Lightbank, the venture firm that invested early in Groupon
  • Mobile social network Parlor.fm closed angel funding from investment group ALM UNLTD that has made $500,000 available for its launch
  • Startup Impact Dialing has received an undisclosed amount of angel funding from the Band of Angels group for its cloud-based auto-dialer
  • Server Density, the server monitoring tool, has secured £135k angel funding from Christoph Janz, Qamar Aziz, Kyle McGinn and Distilled.net
  • Jeevanti Healthcare, who are looking to start small-scale or secondary hospitals in Maharashtra and Gujarat, wins $2.2m from Seedfund

To get regular updates, come follow us on Twitter: http://twitter.com/angel__network.

Have you managed to raise capital for your company?  We always love to hear from entrepreneurs who manage to get funded.