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

  • Ashton Kutcher Knows What He Doesn’t Know About Startups: https://bit.ly/lh9fBW
  • Venture capital investment in UK start-ups drops 30pc: https://bit.ly/klmDET
  • What makes a startup successful? Blackbox report aims to map the startup genome: https://tcrn.ch/mSEB3X
  • India among most entrepreneur-friendly nations: Global poll: https://bit.ly/jYKjfh
  • Overview of Angel Investing in Singapore: https://bit.ly/lAQC29
  • Results from a recent survey driven by Super Angel Investors David Lee and Ron Conway: https://scr.bi/mnQ5AI

Business Plans & Pitching

  • Venture capitalist gives entrepreneurs tips on the best pitch: https://bit.ly/mzN3yH
  • Effective Business Plan Writing Guide: https://bit.ly/mcyr65
  • Angel investors, what are they looking for? https://bit.ly/jzCF5s
  • Top 10 business plan mistakes: https://bit.ly/mN8Mze

Fund Raising

  • How to raise money for small businesses: https://bit.ly/mgAkgp
  • How to Grab the Attention of Angel Investors: https://bit.ly/lllc0l
  • Funding Considerations for those Starting or Expanding a Small Business: https://bit.ly/loJqj2
  • 5 great ways to find funding for your company: https://bit.ly/laQjUe
  • Top 10 Mistakes When Dealing with Venture Capitalists: https://bit.ly/kvMcOJ

Marketing & Social Media

  • Six Keys to Managing Your Reputation on the Web: https://bit.ly/lN9Mpa
  • How to market your business online: https://bit.ly/myXqCA
  • The 6 Step Process for Measuring Social Media: https://bit.ly/lxKnFa

Start-Up & Entrepreneurship

  • Four tests to test for a good startup idea: https://bit.ly/jPTrv5
  • 3 Key Metrics To Measure Social Media Success: https://bit.ly/lzhkRt
  • Entrepreneurship not defined by age: https://bit.ly/mjzrSD
  • The Five Best Small-Business Resources You’re Not Using: https://bit.ly/kU52fO
  • The 7 signs of failure for internet startups: https://bit.ly/kA63EE
  • A great idea is only the beginning, here are some key elements every successful entrepreneur should possess: https://bit.ly/itbIbH

To stay updated, come follow us on Twitter: https://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: https://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 

  • New version of US Startup Visa Bill generates buzz among NRIs: https://bit.ly/lSv9gO
  • 6 Important Tips First-Time Startup Investors: https://bit.ly/mshFNE
  • Startup Illinois Launches to Accelerate Growth and Inspire Local Entrepreneurs: https://bit.ly/mr0pk3
  • 10 Things You Need to Check Before Investing in a Startup: https://bit.ly/iHnUAz
  • Hickenlooper signs angel-investor credit, ag tax break: https://bit.ly/liSAch
  • Australian start-up numbers on the rise as Tasmania ranked top for SMEs: https://bit.ly/kRTtvj

Business Plans & Pitching

  • Business Planning: Document successes well and remember to share them: https://bit.ly/kzHFG3
  • Creating a business plan and strong marketing message: https://bit.ly/mP44fe
  • The Right Way to Pitch to Angel Investors: https://bit.ly/lt7zPr
  • Develop Killer Pitch Technique: https://bit.ly/k8DE31
  • 5 Elements of an Effective Business Plan That Will Leave Them Begging for More: https://bit.ly/lJ6qHU

Fund Raising

  • How to Attract Angel Investors: https://bit.ly/ezxDIs
  • How to snare a US investor: https://bit.ly/jrXHNM

Marketing & Social Media

  • 6 Ways to Use Social Media to Boost Local Search Results: https://bit.ly/mQ6CT6
  • Top 6 Small Business Marketing Mistakes: https://bit.ly/iIhs21
  • 5 Tips To Optimize Your LinkedIn Profile: https://bit.ly/j8e9op
  • Five Social Media Must-Haves for Crisis: https://bit.ly/mG4zvB

Start-Up & Entrepreneurship

  • Being Best More Important than Being First: https://bit.ly/ig3tLE
  • 10 Sites To Find Employees For Your Startup: https://bit.ly/ljxMtz
  • Ten reasons to start a company; ten reasons not to: https://bit.ly/iF6T44
  • 9 ways to attract world-class board members: https://bit.ly/m2iNQc
  • 7 Types of Entrepreneurs; which one are you? https://bit.ly/jahgcP
  • 10 Steps From Idea to Business. A cheat sheet to turn your vision for a successful new business into a reality: https://bit.ly/l1uePm

To stay updated, come follow us on Twitter: https://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.