Before you pitch, do some research on the investors you are going to meet. What are their backgrounds, interests, expertise, and investment criteria? What are their pain points, goals, and expectations? How can you tailor your pitch to address their specific needs and concerns? Knowing your audience will help you craft a more relevant and persuasive pitch that speaks to their motivations and preferences.
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Founders have to speak to a large group of investors during a fundraising round so this one is challenging (but very rewarding). Understanding their level of knowledge to know what level to pitch your company at takes time to master but is a very effective skill. Try to get to know your investor on a personal level during the initial parts to a call. You could be ‘married’ under a term sheet for many years, so understanding who you are in business with (for the good times and the bad) is a must.
A well-structured pitch can help you communicate your key messages and arguments in a logical and concise way. A common framework for pitching is the problem-solution-benefit model, where you first describe the problem you are solving, then explain how your solution works and what makes it unique, and finally highlight the benefits and value you offer to your customers and investors. You can also use storytelling techniques to make your pitch more engaging and memorable, such as using anecdotes, metaphors, or data to illustrate your points.
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I always suggest using a "framing" slide that defines what the audience will see in the deck. People are visual and will appreciate the content assistance especially with technical data.
Practicing your pitch is essential to improve your delivery and confidence. You can practice by yourself, with a co-founder, or with a mentor or advisor who can give you honest feedback and suggestions. You can also record yourself and watch your performance to identify areas of improvement. Practice your pitch until you can deliver it smoothly, confidently, and without relying on notes or slides.
When you pitch to multiple investors, you want to make sure you capture and maintain their attention and interest throughout your presentation. You can do this by using eye contact, body language, and voice modulation to convey enthusiasm and credibility. You can also ask questions, invite feedback, or use polls or quizzes to create interaction and participation. Engaging your audience will help you build rapport and trust, as well as gauge their level of interest and understanding.
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Interaction with investors during the pitch is the x factor here. You want them to have questions. One trick ive seen some smart founders use is to raise questions for investors at regular intervals like "Hey Jay, im sure youve faced this problem as a new father..." Relatability and engagement with your audience is key for investors in a group setting to bond with the man behind the company.
At the end of your pitch, you will likely face questions and objections from the investors. This is an opportunity to demonstrate your knowledge, expertise, and preparedness, as well as to address any doubts or concerns they may have. You should anticipate the most common or challenging questions and objections, and prepare clear and concise answers that support your claims and showcase your value. You should also listen carefully, acknowledge their perspectives, and handle any criticism or feedback gracefully and professionally.
After you pitch, you should follow up with the investors to thank them for their time, restate your value proposition and ask, and provide any additional information or documents they requested. You should also keep them updated on your progress and traction, and maintain a regular and respectful communication until you get a clear yes or no from them. Following up will help you stay on top of their minds, build relationships, and move the deal forward.
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