As a professional marketer, one of the most important presentations that you will ever prepare in the investor pitch for your company. But, what should you put into this significant PowerPoint? A lot more … and a lot less than you think.
VCs have short attention spans. So, don’t bombard them with every fact about your product and company. Get to the point and be organized. As the old adage says, “Tell them what you’re going to tell them, tell them, and then tell them what you told them.”
Your investor pitch should:
- Clearly State the Problem: Make them believe the market can’t live without your company and product
- Describe the Problem as an Opportunity: Lay out your product as the solution to the problem. Does your company have a proprietary or differentiated product? Does your product offer benefits over existing products? Does it have patent or other proprietary protection to forestall competitors?
- Illustrate a Large or Growing Market: Does your company have a reasonable chance to successfully enter the market and obtain a strong market position?
- Delineate Your Marketing Strategy: How will you reach your target market?
- Outline Your Competition: Explain your competitors. State their strengths and weaknesses and detail your sustainable competitive advantage.
- Explain Your Business Model: Is your company strategy and business plan sound? Outline your revenue streams. [Hint: VCs love recurring revenue.]
- Show that You Are an IPO Candidate or Acquisition Target: Does your company have the possibility of growing quickly and becoming an attractive acquisition target or IPO candidate? Does your company have “home run” potential? Most venture capitalists won’t be interested unless the company can grow to at least $25 million in sales in less than five years.
- Demonstrate that You Have Strong Management: Highlight relevant experience, drive, self-confidence, and expertise.
If you keep these things in mind, your investor pitch will certainly “wow” the VCs.