Common Mistakes Founders Make When Pitching Startup7:27:00 PM
While there is no definitive guide to raising money, there are tactics entrepreneurs can use to make...
While there is no definitive guide to raising money, there are tactics entrepreneurs can use to make their idea more attractive for venture funding. As an angel, I have had to sit through many presentations, and many of
the powerpoint pitches I have suffered through have put me to sleep.
What can you do to stand out ?
You need to learn to simplify !
Your goal is not to transmit your profound expertise to the funder in 10 minutes. Your aim is much simpler - you just want to capture his interest, so he will want to reach out to you to learn more about your startup. All you want is permission to send more information, so you can have a more detailed one-on-one discussion later.
Instead of thinking about what to put in your presentation, your focus should be on what to leave out. All you want to do is to provide a big picture in a few strokes.
It's very helpful to start out with a slide which will intrigue him. This will engage his brain, so he will start paying attention to you, rather than to his mobile !
It's very helpful to pose a tricky question . For example, one of our startups which provides supplies for breakfast daily to families starts by asking - How can we deliver milk and eggs daily for less than Rs 2 per day, and still be
profitable ? The presentation then goes on to answer this question !
How can you apply this model to your pitch ?
What is one thing about your domain which most people think is true ?
Now you need to show that this commonly held assumption is wrong.
You will need to prove why it's wrong, and how you've learned this lesson.
You then need to show how you've used this insight as your magic sauce in order to create a competitive moat
One of the biggest worries investors have is that if you are successful, other competitors will spring up and drive you out of business.
You need to share your real life challenges , and tell stories of how you have overcome them. Emphasise your mistakes , and what has failed, and then talk about what you have learned from these. This will demonstrate that copying you in a non-trivial task.
Finally, end with some common concerns and objections which investors often have, and answer these proactively. This will demonstrate that you are thoughtful, and that you have a plan to overcome these challenges. Please also highlight what you will not do - investors are happy to see a founder who has focus, rather than someone who will try to do everything and anything - which can be a very expensive exercise !
These are my personal views. Which are the best presentations you have heard ? And which ones put you to sleep ?