To help you crush your next investor meeting, we asked top VCs and tech leaders to share their best pitch advice. Take a look at what they had to say!
Know Your Stuff
One of the biggest turn offs for investors are founders who don’t know the basics of their business, especially their market and customer. Failing to do their homework is never a good color on anyone. Don’t forget, homework also includes knowing your competitor.
Prepare for Q&A
Whether it’s 10 minutes or an hour, there will be a moment in every meeting where you receive tough questions about your business. Be ready. Try to compile all the different types of questions you could be asked about your business, like technical details, financial assumptions and projections, marketing, IP, etc., and prepare a response. The last thing you want is to be caught off guard when that much is on the line.
Less Is More
While it might be tempting to put everything you can into a slide presentation and tell the whole story, too much information could distract the investor and potentially lose your momentum. Also keep the slides clean and easy to read. Experts recommend having more than one deck ready to go depending on the length and type of meeting.
Don’t Argue With Investors
Not every investor is going to agree with you. In fact, plan on them challenging your solution and data points. When this does happen, don’t get defensive; stay positive and answer their questions to the best of your ability.
Quit Exaggerating
Early-stage founders want to say their company has the potential to be a billion-dollar company to grab the investor’s attention. However, with most startups failing in their first five years, it’s important to be more realistic about how you can grow a company and pay them back. “But the exact wrong thing to do is to entrench yourself in ways that can turn off an investor. Venture capitalists are evaluating you as much on your psychology as on your idea. They need to believe that you can lead an organization effectively, and that you will listen to and internalize advice when they give it to you.” Also be careful about exaggerating when it comes to your company’s traction. “It also suggests that you may be the type to get caught up in getting big, and you’ll end up doing way too many things that you won’t be able to do one thing well. No CEO/founder I’ve ever met when they had under 10 employees (Larry Page, Mark Zuckerberg, Airbnb) ever said that to impress me. Be extremely optimistic and confident about your roadmap and how that can lead to a big exit. But don’t focus on the exit.”
Non-Verbals Speak Volumes
Giving an investor pitch isn’t just about what you say and the slides on the screen; they are also paying attention to the delivery of your pitch.
Tell Your Story With Passion
The best advocate for your company is you. It’s important to remember that investors can sense if you have the passion and obsession to push through and build a company. If you can, tell the story through a personal experience that can help the investors connect with the vision of your company. Enthusiasm in your delivery will make a difference. In the end, you’re selling your team and ability to execute.
Final Thoughts
Our leaders had some additional advice to share to help improve your pitch for the next investor meeting. “The one thing in life you can control is effort, said Cuban. “Remember people invest first because they like you and second because they like your idea,” said Flake. “Pretend you are explaining your startup to a 5th grader. Start with the most basic, easiest to understand explanation and then build upon it. You need to make sure anyone listening can comprehend it within the first minute or else you’ve lost them,” said Consalvo. “Be confident. Be humble. Be passionate and earnest about the opportunity. You have to show that you’re in it for the long haul,” said Francisco. “Tell a story with a beginning, middle and end. Start with a headline – the one thing they are doing, then talk about the problem. Not too much but enough to make me feel pain. Then tell the story of the solution and how you are going to get it out there,” said Bewley. “I think the most powerful pitches include proof of why the startup’s customer thinks the product is better than the competition,” said LaCalle. “Just remember, that you’re telling your investors a story, so make solid eye contact as you lead them on this journey into your world,” said Gruber.
It’s More Than Just Pitching
Ready to test your pitch in front of top tech investors and industry leaders? Then apply for the Startup of the Year Competition today. It’s here that top startups from around the world come together and pitch to the biggest names in tech for prizes and investment, as well as gain valuable connections to people who can amplify your business, join the Startup of the Year alumni group who have gone before you such as Uber, GrubHub, Groupon, LivingSocial and Desk, and be a part of the most diverse and inclusive startup competition. Deadline for applications is May 31. APPLY HERE Read more pitch advice on TechCo
