Drafting and pitching your idea can be a daunting task because there is no standard format or how-to for communicating your idea to investors. The goal is to quickly capture the interest of your audience and convince them that your idea is worth investing in. Here are some pro tips to effectively communicate your idea:
Put Your Startup’s Data Into Context
Sure, numbers don’t lie, but if investors don’t know or understand what your data means, they probably won’t grasp how great your idea is. For example, when presenting the iPod to an audience, Steve Jobs didn’t mention gigabytes. Instead, he simply said the iPod could hold 1,000 songs. When drafting your pitch, be sure to make the data practical to give investors a natural and simplified understanding.
Mesh Storytelling and Problem-solving
Have your pitch flow by explaining the problem your idea solves via telling a story of why you decided to launch your startup. It’s not a bad idea to start your pitch with a captivating story about the need you saw that led you to create your product, app, or service. A great way to organize your pitch story is to use a technique called Story Arcs, a systematic way of breaking your story into chunks, that will help your pitch flow better.
Focus on Value Rather Than Features
Remember, you’re pitching to investors who are looking to have a return on their investment. If you keep this in mind, you will avoid the pitfall of your pitch merely consisting of a list of features your business has to offer. Don’t leave investors wondering how your idea will be profitable.
Pitch Alongside Your Co-founders
Investors and VCs are more likely to invest in startups with a solid team. According to a Fundera study, startups that have two co-founders secure 30 percent more funding than startups with just one founder. Show the investors that there’s strength in numbers by pitching with your team to lock them in.
Cut the Fluff
According to a DocSend study, investors spend an average of fewer than four minutes looking at a “successful” pitch deck. When drafting your pitch, it is best to get to the point and fast. One way to do this is by editing your drafts and cutting any unnecessary fluff that could be spent on more attention-grabbing facts.
Choose Investors Who are Interested in Your Industry
Don’t spend time drafting and rehearsing your pitch only to present to investors who don’t understand the culture behind your idea or aren’t interested in investing in your target industry. Do some research and compile a list of investors or VCs that have invested in similar industries.