It is difficult to secure funding for a startup, or for an established company. It is not enough to have a strong startup idea. You will also need a compelling pitch to convince investors. Let’s take a look at the different types of startup pitches and how you can create one that is great for your startup.
What is a startup pitch? A startup pitch is a short introduction, paper, or speech you give to potential investors. It is used to convince potential investors to provide funding. It conveys the viability, sustainability, and scope of your startup idea.
Startup proposals should be clear, concise, and memorable. It should highlight the benefits your products offer. Startup pitches can vary in length depending on the audience and/or circumstances. What is the key? Focus on compatibility and not persuasion when it comes to investors. Show how your vision and values are compatible with theirs. This objective should be kept in mind when you present. Don’t forget: Investors don’t usually have much time. Make sure you adapt your pitch to fit their time and attention span.
These are the main types of pitches for startups:
Elevator pitch: A pitch that can be completed in less than 30 seconds. You can aim for between 30 seconds and two minutes. This is your time to present your product and the solution it solves. It’s also your chance to convince investors that it’s worth investing. Do not worry about every detail in an elevator pitch. What is your goal? Your goal?
The Short Pitch: This pitch takes between 5-10 minutes and is the middle ground between an elevator pitch and a long pitch. Your short pitch is “phase two” of an elevator pitch. Investors may be interested in learning more about your startup and could invite you to meet them. This is your chance to discuss the basics: your product and business model.
Long pitch: If your short pitch is successful but the investor isn’t convinced, they may request a longer pitch. This is a very positive sign that they are interested in funding your startup. A longer pitch takes 20 minutes and provides a more detailed picture of your startup. It does not only include the basics, but also additional information that helps the investor get to know you better. It should include important information such as financial projections, market share, and sales. A long pitch is often your last chance to impress investors.
Investors are interested in your startup idea.
Ignoring the steps to rejection is a sure way of getting rejected. Without proper preparation, you will be unable to enter an investor meeting. Effective presentations are planned and practiced well in advance. These are the essential steps you should take before pitching potential funders.
Find out more about the investors
Many entrepreneurs make the error of pitching the same pitch to every investor. Your proposal should resonate with the investor’s interests. You are more likely to get funding. It is important to research your potential investors before you create a pitch. Here are some questions you should ask potential investors before updating your pitch.
- Which industries are they most likely to invest in?
- Are their values in line with yours?
- What amount of cash do they usually invest?
- Which stage of startups do they typically invest in?
Create a pitch deck
You will often present a pitch deck to potential investors before setting up a meeting. It is your goal to spark their interest and outline what you will discuss. You will use a presentation deck to present your entire concept. This is a visual representation of the topic that you will be discussing. It is a good idea to use the 10/20/30 rule. This rule can be used to make your presentation more attractive. Your presentation should not exceed 10 slides and be no longer than 20 minutes in length. Fonts should not be smaller than 30 points.
Organise sections
Now you have your idea. Now, you need to communicate all relevant information. Communicate viability, scaleability and profitability. These elements should be included in every startup proposal:
- A target audience
- The market size
- Competitive analysis
- Plan for marketing, finance, and sales
- Product-market fit
- Amount of investment
Show your values
Investors are more interested in you as a person than your startup idea when they listen to your pitch. Investors look for certain attributes in you and your team to gain a better understanding of your business culture. Here are some questions investors might ask.
- Are you able to work well with your cofounders
- Are you able to respond well to criticisms and feedback?
- Are your predictions correct or exaggerated to please us?
Tell a story
Stories are more memorable than facts for humans. Instead of bombarding investors with statistics and jargon, allow for storytelling. Investors will be able to see your story from a different perspective and have the opportunity to interact with them. Once you’ve got their attention, give your story credibility and show your business skills by using facts, figures, and other evidence. You can satisfy the emotional and intellectual needs of investors by using a narrative approach.
Create a road map
Your startup will stand out if you present a roadmap of how you see the enterprise growing. Investors will be impressed by your “growth mindset” and want to see preparations to scale your startup. This can be expressed by defining the key objectives for the next few year. Describe the dangers of your organization and how you plan on reducing them.
