Your chances of getting your pitch into the sweet spot go up significantly when you provide investors with the right kind of information at the right time. Keep the process moving along on your end, and interested investors are likely to do the same on theirs. The four Types of Pitches, as you may have noticed, there isnt just one pitch when it comes to capturing investor attention: there are several. Its like laying out a trail of breadcrumbs for investors to follow, coaxing them closer and closer to investing in your company. For the most part, drafting your various pitches is about repackaging the same information in different ways to suit each particular format. Some formats call for more information, others for less, and its crucial to provide the right amount of information in the right format. Investors are easily scared off by too much information too early in the process. Theyre also easily bored, so if the right information isnt coming to them when they want it, theyre more likely to move on to the next opportunity than chase after yours.
Investor roadshows Attracting investor interests
When investors request materials from you, be sure that you respond with the materials they ask for at the moment they ask for them. With every extra moment that it takes to get the information to them, you risk losing their interest. Step 5: The in-person pitch, everything youve done so far the research, the email pitch, the crowdfunding profile, the executive summary has been with the goal of getting yourself in a room with an investor to talk about your idea in more detail. If youve managed to spark an investors interest with everything youve shown them so far, this is the point when theyll contact you to set that in-person meeting. The in-person pitch is easily the most important moment youll have with the investor. Keep your pitch concise and dynamic, your pitch deck these days, thats usually in the form of a powerPoint presentation minimal and free of clutter, and leave plenty of time for investor questions and discussion afterward. Step 6: Investors request more info (again). Youve finished your pitch, the investors seem excited—this is the part where the checkbooks come out, right? Its the part where the investor requests more information—this time, the most detailed that you have: your full business plan, financial details, and information about who else already owns stock in your company. Dont be discouraged when investors want to know more: it means that theyre excited enough about your pitch that theyre willing to do the digging and due diligence to confirm that theres a real, viable company there, and not just a lot of smoke and. Pitching the perfect Game, its called pitching for a reason: you have to get your proposal over the plate in order for investors to take a swing at it, and investors strike zones are extremely small.administrator
Step 3: Investors research you. If your spondylolisthesis email catches an investors interest, they will look for ways to find out more about your company. In this day and age, that mostly involves checking out your internet presence: visiting your company website, doing a quick google search for any press mentions or customer reviews, and looking you up on social media sites including Facebook, twitter and LinkedIn. It also means checking out your public crowdfunding profile (which youve helpfully linked them to) in order to find out more about the particulars of what makes your business exciting from an investors point of view. Step 4: Investors request more info. If investors likes what they see online, they will request more information from you— the kind that isnt publicly available to just anyone. That includes the business plan page of your crowdfunding profile, where theyll be able to see details like your revenue model and plans for future development, as well as the terms of your fundraise itself. They may also request other documents, like an executive summary or pitch deck.
Theyre like stops on a subway route, and chances are youll have to stop at each one of them on your way to funding your company more than once, in fact. Of course, there are exceptions: a well-connected friend sets you up with a meeting, or you really do find yourself giving your elevator pitch to a high-powered venture capitalist on an elevator. But the offer odds of that are similar to those of being struck by lightning, and why stake the future of your business on something as fickle as chance? Step 1: you research investors, you compile a list of investors youd like to work with, and that you think are likely to find your offer intriguing. Remember: the more closely the particulars of your company and your goals match previous investments an investor has made, the greater your chances of getting their attention. Remember, too, that less is often more: youre much better off contacting a few, carefully chosen investors who are actually a fit for your business than a whole army of investors who ignore you. Step 2: The email pitch, once youve got your list of investors ready, the next step is to reach out to them with a concise, well-crafted email. This is where you introduce yourself and your company, let the investors know that you have an investment opportunity that they might be interested in, and invite them to learn more by visiting your crowdfunding profile—and then link them to it!
As a startup you have to be exceptional in at least one regard. We saw the importance of getting our investor deck out early to get real world input. If we hadnt shown our first presentation to anyone, we may have shared a weaker story with potential investors and conversations could have stalled. Theres a lot that you could think of including in your investor presentation, but every company is unique so its up to you to determine how to tell your story the right way. The main goal of your presentation is to get investors to understand that you could be onto something with your business. Focus on highlighting the sign(s) that point to this. In our case it was our traction but for your company, this sign could be an exceptional team, technology, or set of partnerships you have lined. Keep in mind that a strong investor presentation alone likely wont raise you money, but it can only help your cause if you do it right. In most cases, the search for investor support follows a common sequence of events.
Regulation d resources — private Placement Memorandums
We shared our story with fifty investors over the next three months, closing a 2 million dollar investment round from eleven investors. In hindsight, we realized that perhaps having all the elements we were business were expected to have could have actually been the problem with the first version of our presentation. Our story was too predictable. And because everything in our presentation was expected, it was like hearing a song get overplayed on the radio. No matter how good that song might be, you eventually become numb. You may even start to dislike. Investors see hundreds of pitches a year and can almost predict whats coming next if the structure of your story seems to fit with something theyve seen or heard before.
It seemed our presentation was being processed by investors as, yep, ive heard this one before rather than, holy cow, you have my attention. Granted its hard to control all variables when trying to gauge how investors will feel about your pitch. Like most people, investor opinions are influenced by many factors outside of your control but getting early versions of your presentation in front of at least a few investors can help sniff out a story that might lack impact. This something that stands out doesnt necessarily have to be a novel idea, it could also mean a high rate of growth or a unique way of getting customers. As AngelList founder naval ravikant explains, investors are trying to find the exceptional outcomes, farm so they are looking for something exceptional about the company. Instead of trying to do everything well (traction, team, product, social proof, pitch, etc. do one thing exceptional.
We reflected over the next few days, feeling deflated and wondering what went wrong. I was lucky to grab coffee with my friend Julien Smith (who just raised an investment from notable investors including Gary vaynerchuk). During our conversation, we ended up talking about how our team was working on our investor presentation. I spoke about the opportunity in our market and how we were going about solving the problem. I started to sense the same emotional disconnect in this conversation with Julien that we experienced sharing our investor deck with our current investors. I went on to note that we were growing at a rate of thirty percent month over month.
Interestingly, once i told Julien this point about our growth, he stopped me and said, hang. Youre growing how much? This sparked a thought that perhaps the focal point of our story should not be on the opportunity in our market, but rather our rate of growth was more of a sign that we were onto something. Julien shared some thoughts about how we could structure our presentation to get to the traction elements of our story much sooner. After a restructuring of our investor presentation to focus on our traction, heres the new version of our slides: Final version of our presentation focused on Traction: view the full presentation here moving our traction slide from the middle of our presentation to the beginning. We started speaking with new investors and it proved to be something that stood out. The first few times we presented this story, we received multiple invitations for follow up meetings. We could feel the emotional difference in this version of our presentation compared to the first version.
How to present a business plan to investors?
Opportunity slide which we called The essay Shift: Polished slides focused on the Opportunity slide. Note that we moved the point about our opportunity from the fifth to the third slide in our presentation. Our intent was to hopefully draw the attention of potential investors to this trend in the economy early on in our presentation. At this point, we had yet to show our investor deck to any investors so we didnt know how it would be received. Before talking to new investors, we wrote to some of our current investors letting them know we were going to be sharing our story and would love for them to hear it first. Just like testing a product, we wanted to test our presentation by getting feedback from our target audience. We went into these initial meetings thinking we had all the elements we were expected to have in a strong investor presentation, but when we finished sharing our story, there seemed to be a lack of enthusiasm. I could feel there was no emotion in the room and our presentation felt flat.
Opportunity slide within the first few minutes: First sketch of our investor presentation. We knew this structure would evolve, but we wanted to lay down a high- level view of our presentation to make it easier to understand the pieces we had to play with before getting into the details of each slide. Work from big to small, once we thought we nailed the general structure for our story, we moved the content into keynote but still kept the presentation to just text on slides — no images or pretty typefaces yet. I held on to the presentation for a week, reviewing the slides a few times each day to get a different perspective on how the story could flow. Theres many different paths your story can go and giving yourself time to reflect on it will help you consider different alternatives that could make your story better. Heres our, opportunity slide in the first rough version of our keynote presentation: reporter Ugly Opportunity slide. We believed the story was now at a point where it would be ready to share with potential investors so we polished the slides for presentation. Heres the polished version of our deck focused on the.
Model — How do you make money? Customer Acquisition — How do you plan to grow? Because Crew is a vetted network of mobile and web independent professionals where the professionals pick their work, we thought one of the strongest parts of our presentation was the opportunity in our market. The economic shift toward independent, remote work is happening now and is expected to only accelerate over the coming years. We focused our investor deck around this point because it was the piece of our story where we felt potential investors might say, you have my attention: Heres the first sketch of our investor presentation focused around getting to our.
There are hotel tons of articles, resources, and books about how you should model your investor presentation and you can drive yourself insane trying to follow each format exactly. Some investors say you should always put the team slide first, while others say you should save it until the end. Some say you need to include a slide about the problem youre solving, while others say there are no such things as problems, only opportunities. Before you fire up keynote or Powerpoint to design any slides, its important to know the main elements you could include in your story but you ultimately need to craft the best story based on your companys unique combination of team, traction, product, market, etc. There isnt a one-size-fits-all template. Here are the main elements (in no particular order) that we considered including in our investor presentation: Introduction — Who are you? What is your company name? Opportunity/Problem — What problem are you solving and/or whats the opportunity youre after? Solution — How are you solving the problem?
The investor presentation we used to raise 2 million
If you choose to raise money for your company, youll inevitably need to prepare a few documents for investors. One of the most important ones is an investor presentation or a deck. Two years ago i didnt know what a deck was, but fast forward to today and our team. Crew has prepared multiple investor presentations, raising two rounds of investor funding. We just closed a 2 million dollar investment from a group of investors we couldnt be more excited to be working with resume and I thought it might be helpful to share our process for how we created our investor presentation. Crafting the best story for *your* company. For investors that dont know you yet, your presentation will likely be one of the first impressions they get of your company so its an important piece to do right.