100 failed attempts of fundraising to 40B$ company.
People generally believe that they should start their pitch with why, but in reality, investors don’t have that much time.
Investors hear 1000 pitches, It’s hard to focus intently. They need some empathy and need you to help them out.
Sometimes it’s better to guide them towards the right questions in the first few seconds.
- Do I understand the idea?
- Am I excited about the idea?
- Do I like the team?
If founders are able to tell in one line what they are building, it gives investors time to think and get excited about the problem.
So how do we start?
The best way is to include 3 nouns in the first sentences because nouns help create pictures in the investor’s mind.
We can start by answering 3 simple questions.
- What are you making?
- Who is the customer?
- What is the problem you are solving for them?
An example of a bad description.
- We are going to transform the relationship between information and individual.
Good and successful descriptions.
- Airbnb is the first online marketplace that lets travelers book rooms with locals instead of hotels.
- Dropbox synchronizes files across your team’s computer.
- Lumineye is building X-ray vision for soldiers and first responders.
- Vahan is building LinkedIn for the next billion internet users.
If using this X (uber) for Y(home delivery) approach then keep in mind.
- Your X should be a household name.
- Does Y want X?
- Y should be a huge market.
- Though it is a good approach to get your investors excited.
- It is an idea that can be understood by anyone who has no idea about your business.
- Word of mouth: your idea is so clear and easy to understand so that it can be easily repeated.
- You are designing slides so that you can democratize the idea. So that even your grandmother can repeat it.
Try to present a legible idea.
- Ambiguity, something that makes your idea muddy (something that can be interpreted in 2 ways).
- Complexity - ideas that are intertwined with multiple ideas.
- Igrnorable words: language which people will understand is marketing generally ignore. Like, buzz words or something that investors will equate with 0 value.
So what is the best way?
- Reproducible: people should be able to talk about your idea even after the presentation is over. For that person has to have a clear picture in the mind.
- Make it conversational: It is the safest and by far the choice because it makes the other person feel involved and hence retain their attention.
- No preamble: Because everyone has one and Investors heard them almost every day and thus are immune to it.
- Go straight to the point.
- You need to have nouns and objects to imagine.
When your idea is concise.It also gives secondary information about the founders
If you are able to explain it quickly it means.
- You have deeply thought about your idea.
- And because you have figured out how to talk about your idea efficiently it means you can make people excited about your idea.
- It shows that you are efficient with your words then you must be efficient with your thoughts, and maybe also efficient with your actions.
- It also gives the impression that you understand is the most important part of your idea. At last, there are always exceptions to the general rule and you are the best judge on how your idea must be best presented. We hope this article adds perspective to your thinking.