The charm of entrepreneurship has driven a lot of individuals to start their own business. There was a time when just a great idea was enough to compel a veteran investor to open his/her pocket to support the ‘next big thing’. The time and things are so different now! With the decrease in the entry barrier, there is a drastic increase in the expectations of an investor for the ideas they invest in. Startups are competing for funding and it is much more difficult to catch the eyes of an angel investor. Here’s something all startup founders should know when speaking to an investor - You’ve got just 30 seconds of their time. So in this half minutes, you can impress them with your idea, or you can forget it. The first impression counts the most as all it takes is the strategy and passion.
It has been seen that there is a huge gap between what an entrepreneur perceives to be important versus what investors really value. A lot of people have suggested the ‘30-3-30 formula’. As per this you get 30 seconds to nail your pitch and if the investor likes it, you get another 3 minutes to make them understand the opportunity based on which you get the 30 minute face-to-face meeting. Your pitch plays the most important role in communicating the incredible ideas and finding the right investor. For founders with sales DNA, communicating the pitch comes naturally, but for a lot of startups with may be technical/ non-sales experience, understanding and communicating the pitching becomes difficult. As a CEO, your main job is selling. Recruiting, fundraising, getting your first customers, partners, etc. all are sub-parts of selling. By understanding a few core aspects of how pitch presentations are received by investors, as an entrepreneur, it increases your chances of getting a great investing partner.
Your entire pitch is incomplete if you miss on showcasing the addressable market and the prospects who will buy your product, your business strategy, your plans for product delivery, your key milestones, analyzing your completion and explaining how you’re better and last but not the least what kind of ‘Investment’ are you looking for. Planning and execution of how are you planning to deploy the investment to meet the specified milestones. So successfully deliver on what an investor wants and you will have a truly irresistible pitch.