How To Pitch Your Business For Investment

Pitching for an investment is not an easy thing to do. As a skill, pitching requires you to distill all the information about your business into an exciting, entertaining presentation that will keep potential investors engaged for the duration of your pitch. A great pitch should mimic your business plan in structure and flow but be told as a story.  

Every good pitch presentation should include 10 basic elements.  

We’ve broken them down for you here so you can easily build your pitch presentation:  

Cover Slide: this page should introduce us to your company with logo and branding. This is a great point to explain your background as the founder, and why a potential investor should part with hard-earned capital.  

Statement and Scale of the Problem: what is the problem your business is solving? How big is this issue to the current customer market? 

Product or Service Description: what are you doing? How does your product or service address the problem and why is it a unique, valuable solution?  How sustainable is your competitive advantage? 

Market Overview: tell investors the size of the market you’re attacking?  How is the market organized and what will it take to win the market segment? 

Competitive Landscape: who else is out there doing what you do—how do they stack up, and how is your product or idea better?  

Target Customer Value Proposition: who is going to buy your product, why will they buy it, how much will they pay, and what is the return on investment for that purchase?  

Business Model, Marketing and Sales Plan: how will you make money, get your message to market, and how will you sell to that market? How do you intend to reach your audience and how do you intend to deliver your product in order to get paid? What is your “beachhead” strategy and how will you scale your company’s reach and sales? 

Financials: how much investment are you seeking, how will you use the funds, and what are the projected returns?  How will investors recoup their investment, see profits, and when? 

Team: who is on your team and why is this the right team to win in this market? Why should investors trust you? 

Summary: your last word on the pitch—with all your contact information.  

Do’s and Don’ts of a great Pitch 

DON’T put videos in your presentation! It might be tempting to show off a product video or beautiful trailer, but an investment presentation isn’t the place. Even well-produced videos suck the life out of the room while investors wait for it to load and watch it.  Most importantly, they break the engagement with the audience. 

DON’T do a live demo—ever! This might seem counter-intuitive but nothing is worse than a failed or disappointing demo.  

DON’T have two people do a presentation! Two speakers dilute the message and can break the engagement of the audience while they switch off, distracting from your presentation. Pick one great speaker on your team and coach them well.  

DON’T run long! Be efficient with your investors’ time—it shows maturity, respect, and preparation.  

DO prepare a streamlined presentation. Plan for 10 - 15 minutes of pitching (in this case, just 1 - 1.5 minutes per slide with the outline above) and 15 minutes of Q&A. Include only relevant, salient facts that make your case in the most truthful and appropriate fashion. Use succinct bullet/talking points using the 5 x 5 x 30 rule (five bullet points, five words, 30 point font) and stay away from industry jargon and buzzwords—they can sound trite and be off-putting to investors.  

DO describe your product in a simple, understandable way. Make sure you describe your product and service, but do not deliver a dissertation. If you cannot describe your product in one sentence, start over. The first mistake people make is focusing 90% on the product and only 10% on everything else—do the opposite! Investors want to understand your product, but they also want to understand how the business will create revenue and return their capital. Remember, it is not about the story you want to tell; it is about the story the investor wants to hear.  Strive for simplicity: complexity is not a barrier-to-entry for fast followers, it is a a barrier-to-entry for investment.  Sell the value of your venture, technology or service, not the structure or nuts-and-bolts of the IP. 

DO be truthful. Leave out hyperbole—investors see through that immediately and you lose credibility, one of the key elements in raising capital. Illustrate the big picture in the form of a story with a logical flow that an investor can relate to through a personal, industry, or business experience.  Use simple graphics and charts that simplify complex information.  Nothing sells better than sales traction plus a compelling marketing & business plan.  And nothing ruins a deal faster than over-explaining or over-selling.  

DO treat your investors with respect. Remember that you are pitching to folks who are experts in some kind of business. Treat them with respect and know that the question-and-answer portion of the pitch is the most important part of the pitch! Leave more time for discussion than you do for your presentation, or you risk losing your audience’s attention and investment. You want your audience to ask meaningful questions and have the answers. Investors will guide you to what the most crucial elements are for their investment.  If they are not asking questions, you are not getting their money.  

This is not rocket science—give investors what they are looking for, and you will find the financial support you are seeking!  We highly recommend checking out Simon Sinek’s TED Talk on How Great Leaders Inspire Action.  It will change your concept of sales, marketing, and raising capital.