The first pitch to investors is in many ways the company’s first date. It is the investors first experience with you and your company. The end goal is to receive a second date. Yet, with many top notch pitches coming through it takes more than just a solid proof of concept and innovative idea to gain interest.
Less is More
Too many companies dive into the fine details of every aspect of their company and leave less time to address key concepts. With only a finite time, a company needs to be well versed and concise in order to display a well rounded opportunity. Not all investors are experts in every industry, so using jargon and industry terms tends to confuse and lead to less interest. However, investors understand traction, market size, and IP’s; all of which strengthen a pitch and reduces risk in the investors eyes.
Non-Disclosure Agreements are bad
You wouldn’t ask the counterpart to sign a pre-nuptial agreement on the first date; same goes for non-disclosure agreements. Investors mostly likely will not sign this, it’s almost an insult to make them sign that document before they know anything about you or the company. It shows little trust in them, and requires time to review before you even pitch. With that being said, it is understandable that the “secret sauce” needs to be protected. It is completely doable to give a pitch without having to display the secrets. As Chris Coulter said in in his NDA blog, “In your slide decks, remove any sensitive information and don’t divulge technical, confidential information during your presentation”.
Pitch Deck Check List
Along with a clean presentation, investors are looking for a specific things. Here is a check list to go over before ever presenting to investors.
- Problem you solve
- IP and/or Competitive Advantage
- Market (Total Addressable Market included)
- Point A to Point B
- Management Team
- Deal (asking price; deal)
RVC Pitch Academy
This is a short list of suggestions to strengthen a pitch and make it more attractive. If you wish to learn more or practice in front of a crowd, Rockies Venture Club holds a monthly Pitch Academy for all types of entrepreneurs. Just register on the RVC website under events+education and begin working on your first date with investors!