Believe it or not: investors are human.
They want you well. They want you to shine. They want to be able to invest in a great business.
Keep that in mind when pitching.
Why would they not? Since they have decided to spend time listening to you, they might as well be spending time wisely.
What is it that they want to hear and see when you are pitching then?
- Business model
- Entry barriers
- Distribution strategy
- Risk factors
- Capital & Valuation
This is quite basic and represents what to communicate. Perhaps more importantly, is how you communicate. And what conscious and subconscious signals you broadcast when pitching.
The Q&A session is really where the best are separated from the rest. Here investors may use all types of devious and intimidating techniques to find out what you are made of.
By asking you tough questions, they are making sure that you know what you are talking about. They need to make sure. They want to make the right decision and also be happy about their decision afterwards.
How would you approach the situation as an investor? What do you look for when interacting with a person? How do you evaluate someone?
Some of the factors might include:
Investors are also looking for:
How do you communicate all this things when pitching? Implicitly. As a result of the way you convey your message. Not only what you say matters, but certainly how you say things.
Investors are looking for entrepreneurs that they will be able to collaborate with in the long run. Hence, factors like likeability, commitment and coachability, and passion matter.
Keep in mind that investors have plenty of cases to chose from. They have a short amount of time to evaluate a select few. So they need to employ strategic methods to do so effectively. Typically, they have had the opportunity to evaluate a plethora of cases and hence have a sixth sense when it comes to separating the best from the rest.
Do not even think about playing anything but a straight game. Typically, you are pitching in front of 4-8 jurors with a substantial amount of collective experience. Numerous of them have probably been in your shoes and know what and how you are thinking – as they have probably been thinking the very same at some point of their lives. Stick to integrity and sincerity.
Have you ever seen TV show Dragons Den? While it takes a substantial amount of time and effort to build rapport and gain trust, it only takes an instant to screw up. So play a fair game, be congruent and pay attention to details. It all matters and separates you from the rest.
Keep practicing. Know what to say and how to say it.
Keep in mind: stage time. Capitalize from experiences.
Until next time,