How to pitch your business idea

Summary

In this comprehensive guide to creating an effective investor pitch, Lorena Koelsch emphasizes the importance of a compelling introduction, a clear company snapshot, and a focus on the team’s expertise and the benefits of the product rather than the technology behind it. She highlights the need for a strong market context, financial forecasts, and a clear use of funds. Koelsch advises a memorable closing, stressing why investors should work with you. Lastly, she underscores that your personal pitch is crucial, as investors are not just investing in a company, but in the people behind it.

Takeaways

• 😀 A good pitch is like a movie trailer: it should be interesting and engaging without giving everything away, creating excitement to learn more.
• 😀 The first few seconds of a pitch are crucial. The intro should captivate the audience's attention with something exciting and memorable.
• 😀 A mini pitch within the pitch is essential. It’s a 60-second snapshot of where your business is at, including details like B2B or B2C, startup or growth stage, product development, and fundraising.
• 😀 The biggest asset of a startup is its team. Highlight the experience, motivation, and talent of your team to show why they are the key to your business’s success.
• 😀 Avoid overemphasizing technology. Investors care more about the benefits to the user rather than the tech behind the product. Focus on the real-world impact.
• 😀 Use real-world examples, visuals, or videos to make your product’s benefits come to life for the audience.
• 😀 It's important to discuss the market: its size, your target audience, and the gap you're addressing. Demonstrate a clear understanding of market dynamics.
• 😀 Investors care about financials. Highlight your financial forecast, the timeline to break even, and your plans for using the investment (e.g., product development, marketing, recruitment).
• 😀 As a startup, enthusiasm is key. You need to persuade potential customers or partners to take a chance on your company and explain why your offer stands out.
• 😀 End your pitch with a strong call to action. Clearly summarize why someone should work with you, invest in you, or partner with you, and what they will get in return.
• 😀 Remember, it’s not just about the company; it’s about you. Your personal pitch is just as important as the business pitch. Show up, be confident, and make the most of the opportunity.

Q & A

What is the main purpose of an investor pitch?

An investor pitch is designed to captivate the audience and generate interest in your business, much like a movie trailer. It should make them eager to learn more, while leaving out some details to maintain intrigue.

Why are the first few seconds of a pitch crucial?

The first few seconds of a pitch are crucial because they are your opportunity to grab the audience's attention. A simple introduction won’t suffice; you need something engaging to keep them interested from the start.

What should be included in the mini pitch or elevator pitch?

The mini pitch should briefly cover key aspects of your business, including whether it’s B2B or B2C, its current stage, product development, funding raised, and other relevant milestones—giving a snapshot of where your business stands.

What role does the team play in a startup pitch?

The team is one of the most valuable assets of a startup. It's important to highlight the experience, skills, and enthusiasm of the people behind the company to show why they are capable of succeeding.

What common mistake do companies make in their pitches?

Many companies overly focus on the technology behind their product, rather than emphasizing how it benefits the user. It’s crucial to demonstrate the value the product or service provides to potential customers.

How important is the market context in a pitch?

The market context is important because investors want to understand the size of the market you are targeting and how your product fills a gap. It’s essential to demonstrate that there is demand and potential for growth.

What should a company focus on regarding financials in a pitch?

A company should clearly present its financial forecast for the next three years, including when it expects to become cash-positive, break-even, and how it plans to use the funds raised (e.g., for recruitment, product development, or marketing).

How should a company demonstrate its value proposition in a pitch?

To demonstrate its value proposition, a company should clearly explain why potential partners, customers, or investors should choose to work with them, highlighting their unique benefits and competitive edge.

Why is personal presentation important in a startup pitch?

Personal presentation is key because the pitch is not just about the company—it’s about you and your team. Investors or partners need to connect with you as a person, seeing your passion and belief in the business.

What is the ultimate takeaway from an effective pitch?

The ultimate takeaway from an effective pitch is that it’s all about you and your team. Your personal presentation, enthusiasm, and clear communication of why you and your business are worth investing in should leave a lasting impression.