The advice in this article is based on the experiences of the Angelwise team and of various VC partners.
Before contacting any investors, make sure you know their investment strategy. Nothing triggers a worst response than to try an pitch to someone who is not investing in your type of company.
And remember: you have only one chance to make a first impression.
The 13 page slide deck
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Purpose
Problem
Solution
Product
Team
Why now
Market
Competition
Business model
Traction
Financials
Exit
Ask
Grab the attention of the investors on what your company is about with some compelling data or statement.
Describe clearly what problem you’re addressing and the benefit (from the customer perspective) of fixing it.
Demonstrate how you’re fixing the problem and what the metrics are that demonstrate your customer is getting value.
Describe what your product is, how it solves the problem you attack and map out how the product will evolve.
Introduce the team that will make your company a success, who are the founders, management, board and advisors.
Highlight why the timing is right for your company to introduce your product.
Demonstrate who your target customer is and that you’re operating in a big, growing market.
What are the current solutions that you will displace or complement and what is your USP vs. competition (any IP?).
Who do you sell to and how, pricing, marketing & sales strategy and process, CAC & LTV.
Show your traction, articulate revenue to date, positive commitments and/or indicators of future revenue growth
Include a table with a forecast with # customers, revenue, gross profit, opex, EBITDA, # employees and cash, starting with the current/last trading year.
Define your exit strategy and horizon, identify current M&A in your space and potential acquirers.
Clearly express what your are looking for in terms of investment, what is the use of funds, and specify other financing sources.
Purpose
Grab the attention of the investors on what your company is about with some compelling data or statement.
Problem
Describe clearly what problem you’re addressing and the benefit (from the customer perspective) of fixing it.
Solution
Demonstrate how you’re fixing the problem and what the metrics are that demonstrate your customer is getting value.
Product
Describe what your product is, how it solves the problem you attack and map out how the product will evolve.
Team
Introduce the team that will make your company a success, who are the founders, management, board and advisors.
Why now
Highlight why the timing is right for your company to introduce your product.
Market
Demonstrate who your target customer is and that you’re operating in a big, growing market.
Competitipon
What are the current solutions that you will displace or complement and what is your USP vs. competition (any IP?).
Business model
Who do you sell to and how, pricing, marketing & sales strategy and process, CAC & LTV.
Traction
Show your traction, articulate revenue to date, positive commitments and/or indicators of future revenue growth
Financials
Include a table with a forecast with # customers, revenue, gross profit, opex, EBITDA, # employees and cash, starting with the current/last trading year.
Exit
Define your exit strategy and horizon, identify current M&A in your space and potential acquirers.
Ask
Clearly express what your are looking for in terms of investment, what is the use of funds, and specify other financing sources.
Presentation tips
A few tips for delivering your pitch presentation:
Be prepared
This is the determining factor on how well or not your idea will fly before an investor. “Do the work. Out-work. Out-think. Out-sell your expectations. There are no shortcuts.” (Mark Cuban)
Know your audience
Do some background check on the investor, this can help you tailor your pitch.
Expertise and ambition
Demonstrate that you are a business-savvy and ambitious intellect who knows how to roll up his sleeves and get dirty in the real world, willing to go to any length (positively of course) to achieve his vision of conquering the relevant market space. Highlight your (and your team’s) achievements.
Unnecessary information
Maximize the time you have by being brief and precise, with the relevant data points.
Be visual
Visual messages always make the most out of your pitching presentation, avoid to many words.
Know your business
Have the right facts and figures figured out, know your long term goals and a plan to achieving them.
Brief, clear and open
Don’t get lost in detail, or in complexity. Make sure you explain in concrete details how you intend to create a space for yourself in the market. What size of the market do you occupy? What are your go-to-market plans? Give current stats in the market to validate your knowledge base the industry you are in.
Clear ask
Make sure you know what the investment will be used for, be open on your other (existing or potential) investors.
Easy to contact
Provide all your contact details, and set-up an easy way to schedule a (follow-up) meeting.
Be prepared
Know your audience
Expertise And Ambition
Unnecessary Information
Be Visual
Know your business
Brief, clear and open
Clear ask
Easy to contact
This is the determining factor on how well or not your idea will fly before an investor. “Do the work. Out-work. Out-think. Out-sell your expectations. There are no shortcuts.” (Mark Cuban)
Do some background check on the investor, this can help you tailor your pitch.
Demonstrate that you are a business-savvy and ambitious intellect who knows how to roll up his sleeves and get dirty in the real world, willing to go to any length (positively of course) to achieve his vision of conquering the relevant market space. Highlight your (and your team’s) achievements.
Maximize the time you have by being brief and precise, with the relevant data points.
Visual messages always make the most out of your pitching presentation, avoid to many words.
Have the right facts and figures figured out, know your long term goals and a plan to achieving them.
Don’t get lost in detail, or in complexity. Make sure you explain in concrete details how you intend to create a space for yourself in the market. What size of the market do you occupy? What are your go-to-market plans? Give current stats in the market to validate your knowledge base the industry you are in.
Make sure you know what the investment will be used for, be open on your other (existing or potential) investors.
Provide all your contact details, and set-up an easy way to schedule a (follow-up) meeting.
In short, tell a short but great story and demonstrate that you and your team will deliver the plan. Make sure you show how you work with your customers. Be real.
Follow-Up
Be ready to follow-up with:
(African Proverb)
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