By Anthony Gellert
Pitching to investors is scary, and your deck isn’t the only thing that will make or break your pitch. Getting an angel investment can be the difference between your company failing and getting the money it needs to become a big success. Presenting to investors is, obviously, the make it or break it moment for you and your company. That’s a lot of pressure. But don’t worry! Here are the 6 do’s and 6 don’ts that will make sure you make the most out of your precious seconds in front of the people that can make your business explode.
1. Pick your angels carefully
You need money, of course, and the thought of limiting your pitches to certain angels probably seems counter-intuitive. However, you don’t have unlimited time. In addition to fundraising, you are still running a business and you can’t afford to miss a step. After all, part of the value of your new company is its head start on the competition, and you don’t want to lose that head start by wasting your time on angel pitches that won’t get you any money.
Your biggest risk with picking the wrong angel targets is a lengthy due diligence process with only a small amount of money at the end of the rainbow. That is why angel clubs offer a better alternative. You pitch once to a large audience. You answer each question once. And, if all goes well, multiple cheques come in. That’s the type of efficiency that you want.
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2. Make sure the product/site works
Embarrassing moments regarding the quality of a product or website has happened more than you might think. The product has even failed directly in front of our audience. Please don’t pitch until the product works. You will make the most out of your pitch if your product is fully functional and can impress us.
If your product is internet-based, make sure that your website is running. If it’s a travel site for example, we’re all going to boot up your site and type in “New York City” while we watch your pitch. Make sure the results make sense and support the image that you’re painting in your presentation. Giving a strong impression of you and your company will greatly improve your chances of getting an investment.
3. Start with the pain point
The pain point that your business is solving is the most important thing for us to know, because it shows us that you understand that people want what your business has to offer, and you’re not grasping at straws.
“We have developed a platform to commoditize the aggregate on demand car service capacity of any given city by geolocated ten block regions.”
Bad. We see a lot of pitches and digest a lot of buzz words. Keep it simple! This sentence tells me nothing outside of you memorizing the buzz words that you want associated with your business.
“Don’t you hate when you can’t get a cab right when you really, really need one? Our app solves this problem.”
Good! This tells me exactly what your app is trying to do and what pain point it’s trying to solve, because most people have had exactly that problem. By starting with the pain point that you’re solving, the rest of your pitch will follow one cohesive message, and we will better understand your business.
4. Practice setting up your equipment
I am a member of two of the most active angel groups in New York City, HBS Angels of Greater New York and NY Angels. In both cases, for our entrepreneur meetings, we borrow a conference room from a law firm (big thanks to each of them). The IT support is uncertain since we are not a paying tenant and we are there after hours in some cases.
Wherever you pitch, make sure you have all the different cords and dongles that you could possibly need to connect your computer to a TV monitor. Your chances of getting an investment once your presentation looks unprofessional to the investors is very low. If we all have to crowd around a laptop to see your presentation, it’s over.