“If you can't explain it simply, you don't understand it well enough.”
The investor pitch is without doubt the toughest pitch you will ever have to deliver. It is not just the fact that the survival and future of your business may depend on the outcome of the pitch. It's also that you will be pitching to some of the smartest, most analytical minds on the planet, who in many cases are former entrepreneurs who have the insight to critically assess the claims and projections you make. These factors are compounded by the reality that many investors hear anything up to and beyond a hundred pitches a year and, consequently, have heard it all before.
Make no mistake, your chances of raising capital are very low if you can't pitch. Even if you have a business with great potential, the ability to pitch is nonnegotiable in the eyes of investors. From their perspective, if you can't deliver an effective, persuasive pitch, then how can you lead your company to success? How will you be able to raise further investment when it's needed or win big sales accounts?
Although there are some minor distinctions between angel and venture capital (VC) pitches, this chapter focuses on the common features of both types of pitches. ...