How do I develop a winning pitch for investors?

I’m asked almost daily “How important is the live pitch?” and “Why do I need a great pitch deck?” My answer is: “You don’t … if you never plan to raise any capital for your business.”

If you do need to raise capital, then you will need a great pitch deck and great pitch delivery. Videos and PowerPoint slides are fine, but nothing replaces a great pitch from the management team. It’s the best way to show potential investors what they want to see and hear.

In my role as executive director for Digital Sandbox KC, I’ve had the privilege to meet hundreds of early-stage entrepreneurs over the last several years—and have personally witnessed more than 300 investor pitches. Here’s what works best for most presenters.

The Basics

A solid pitch details the who, what, where and why of your startup. But more than that, the pitch announces you’re here, and you have a great idea and a great team to execute the plan as soon as you raise the needed capital. A great pitch signals an early-stage investor that “you better get on board this train before it leaves the station.”

Depending on your audience, your pitch may be 10 to 25 minutes. When our applicants pitch for project funds, we limit their pitch time to precisely 10 minutes. The Q-and-A session is precisely 20 minutes.

If you’re delivering a one-on-one pitch in a private meeting, plan on about 20 minutes to tell your story. If it’s an investor conference or group setting, you may be limited to 10 to 15 minutes.

Whatever the time limit, it is critical to tell your company’s story (your pitch) as clearly and concisely as possible. To steal a line from a very old TV show, “just the facts, ma’am.” Avoid the urge to add more each time you review your deck. Instead, look for less important tidbits that can be removed so you end up with only the most essential information and ideas.

Tell Your Story

A great pitch sounds like a finely woven story. Typically, the story starts with a problem that potential investors can understand—a problem affecting enough people or businesses that investors can see a large potential market.

Your pitch then describes the solution your startup is offering the market. Include details that boost your credibility, such as your team’s unique qualifications and backgrounds that give your company a competitive advantage.

A complete pitch deck typically will include:

» Your revenue model—that is, how do you make money?

» Three- to five-year financial projections

» Go-to market strategy

» A brief competitive analysis

» The ask (the amount of capital you’re trying to raise) and an overview of how you will use those funds

In the Sandbox world, pitch decks usually don’t exceed 10 slides—10 minutes, 10 slides!

As important as what to include in a good pitch deck is what not to include. This is not the time for a data-dump or a NASA-style technical definition of your product. Nor do investors want to hear about how you and your co-founder have been best friends since kindergarten.

Instead of getting into the mechanics, talk about how your solution solves the problem. Tell a single fact about team members that gives your company a distinct competitive advantage.

Images and visuals are better than lots of text. If you can, show them, don’t tell them. For a great example, go view the original Airbnb pitch deck (it’s easily found online) and see how they used minimal text and slides to tell their story.

Remember, you’re weaving a story. People don’t want to be inundated with facts, figures or technical jargon.

Don’t Make These Mistakes

» Too many slides in your pitch deck. You’ll get halfway through your presentation and realize your time is running out. Then you’ll panic and start rushing through slides.

» Too much detail per slide. As a result, important points get overshadowed by clutter. Select one or two points that you want investors to take away from each slide. Focus on those.

» Lack of practice. And that leads to nervousness, lack of focus and a poor presentation. Investors will think you don’t know your stuff.

» Failure to “check all the boxes.” Your deck is missing standard information that investors expect.

» Speaking in very general terms. Be clear and specific. Don’t tell us your target market is “huge.” Provide some clear reference points. Google can find virtually any information you need to provide an educated estimate.

» Failing to realize the evaluating process begins the minute you walk in the room. Everything you say and do is part of the pitch process. If you and your co-founder get in an argument over an A/V issue, that can be a killer.

» Being defensive and dismissive during the Q-and-A session. Nothing turns off an investor faster than an uncoachable, know-it-all founder.

What Great Pitchers Do

So what are the things that separate great pitches from those that are lacking?

» Practice, practice, practice. Then practice some more. You cannot be overprepared. If you’re properly prepared, your confidence will show.

» Anticipate potential questions. And be prepared with clear, concise answers. Write down every question you ever get from a potential investor, and be prepared with a clear answer for next time.

» Be specific. Use milestones, dates and meaningful numbers to show your expertise.

» Be yourself. Use your own style and let your passion show.