If you have a great idea for a startup, you need to validate it with a minimum viable product (MVP) before you invest too much time and money. But how do you convince investors to fund your MVP and support your vision? In this article, you will learn how to pitch your MVP to investors in a clear, concise, and compelling way.
The first step in pitching your MVP is to explain the problem that you are solving and how your product is the best solution. You need to show that you understand your target market, their pain points, and their needs. You also need to demonstrate that your solution is unique, feasible, and scalable. Use simple language and avoid jargon or technical details. Focus on the benefits and value proposition of your product, not the features or functionality.
Important note: writing: “your product is the best solution”; meaning - your product doesn’t nessecary have to be the best product seen from a engineers or an architects perspective. You should considder and describe how your problem solves the customers needs in the best way. If the product is alike other products you can describe how your supporting services is better in helping customers etc…
The second step in pitching your MVP is to show that you have some evidence of market demand and customer feedback. You need to prove that people are willing to use and pay for your product, and that you have tested and validated your assumptions. You can use metrics such as user sign-ups, revenue, retention, referrals, or testimonials to show your traction and validation. You can also share your learnings and insights from your MVP experiments and customer interviews. Be honest and transparent about your challenges and risks, and how you plan to overcome them.
PRETOTYPE AND IMPROVE LIKE TESLA Tesla used a Lotus Elise to interest potential buyers for their first car. In 2003, the founders of Tesla had an ambitious idea (an all-electric 2-door sports car). In order to convince potential buyers to order its car, Tesla created a pretotype of what the car would look like. Lotus supplied Tesla with a ‘glider’ Elise - which was filled with models of key components. This was not a prototype, because the vehicle didn’t function. Tesla was able to show buyers a close proxy for the final design. Tesla asked “Will you put down a $5,000 deposit to have it built to order?” From this test Tesla secured several hundred deposits, a non-trivial result to reassure their Investors.
The third step in pitching your MVP is to explain your vision for the future and your goals for the next stage of development. You need to show that you have a clear and realistic roadmap and milestones for your product, and that you know what it takes to achieve them. You also need to outline your budget and resource needs, and how you will use the funding that you are seeking. You can use a timeline or a roadmap diagram to illustrate your plan and progress.
The fourth step in pitching your MVP is to highlight your team and expertise. You need to show that you have the right skills, experience, and passion to execute your idea and grow your business. You also need to showcase your team culture and values, and how you work together effectively. You can use stories, achievements, or credentials to demonstrate your team's strengths and credibility. You can also mention any advisors, mentors, or partners that support your venture.
The fifth step in pitching your MVP is to engage your audience and ask for feedback. You need to show that you are open to learning and improving your product, and that you value the opinions and insights of your potential investors. You also need to show your enthusiasm and confidence, and why you are passionate about your problem and solution. You can use questions, polls, or demos to interact with your audience and get their input. You can also invite them to try your product or join your waiting list.
The sixth and final step in pitching your MVP is to follow up and maintain communication with your interested investors. You need to show that you are professional, reliable, and responsive, and that you appreciate their time and attention. You also need to show that you are making progress and achieving your milestones, and that you are ready to move forward with the deal. You can use emails, calls, or meetings to update your investors on your status and next steps. You can also use newsletters, blogs, or social media to share your news and stories.