Image by .m for matthijs via Flickr
A recent post on the Anglesoft Blog about pitching an investor brought to mind something we emphasize with entrepreneurs. Less is better! For investors, there are several bars they want to see the Entrepreneur pass before they seriously consider investing:
- Do I get the basic Idea
- Do I believe in the entrepreneurs idea
- Do I understand where she/he is at in their business growth
- Does the team have the ability to succeed
It is critical to understand that the first meeting with an investor is about answering these basic questions. The investor will not be interested in hearing more details if they do not answer yes to these questions.
In the post, guest blogger Tim Young of Socialcast lays out a 5 slide pitch for presenting to investors. The slides are well done and I agree with his approach. A couple of telling things he states:
- He calls out having a succinct 3 minute demo. He notes that he practiced his demo 150 times in a way he could play back the demo to improve his performance.
- He has a backup deck of almost 40 slides with specific details to answer questions the investor may ask.
- He does not use a projector for the initial meeting.
Get to your point quickly with a potential investor. Do not overwhelm them with data. Remember, they are mostly investing in you.