Communications Tips To Nail Your Investor Pitch
Communications tips for your fundraising pitch
Identify problem + solution: Interesting problem. Ideally, unique or novel. Otherwise, a new insight or approach. Compelling value proposition. Clear and concise solution description. Clarity on how the hard parts of the solution work. Inspiring mission. Market size and dynamics.
Opening description. Your first sentence in the interview is either a solution description or value proposition. It should be 4–8 words long and pass the “mom’s test”, i.e. your parents should be able to repeat it back to you.
Strength points. Define 3 core strength points in advance. Steer conversation to hit them all, sometimes even regardless of questions.Types of strength: revenue/growth/traction, domain expertise/done this before, insight aka “a-ha moment”, market size.Consider repeating or rephrasing your top three points when you aren’t sure they landed well the first time.Test your strength points: Will someone be excited about your company if she/he only hears the one-line description and three strength points?
Insights. Those are anecdotes, quotes, or factoids that receive consistent “a-ha” and “hmm.. interesting” reactions during your practice runs.
Defense. Know your 2–3 key weakness areas and prepare short, crisp answers to most common concerns.For every question that you don’t answer with a strength point or an insight, limit yourself to one sentence. You want to maximize the time for strength discussion, not secondary issues. If you use the second sentence, it should go back to strengths or insights.
A small but rapidly growing market is always compelling. Insightful ideas for overcoming market-specific concerns. Activation of “spidey sense” i.e. “hmm… something interesting should happen in this space” feeling. Team with deep relevant expertise and domain knowledge. Strong communication skills: crisp, short, clear answers. Competitive landscape fluency. Proven rapid pace of making progress. Energy and resourcefulness, “get things done” attitude. Coachability, being good at taking feedback constructively. Determined, yet flexible. Original thinking and learning ability. Unconventional points of view and insights directly from customers. Positive team dynamics, no interruptions or arguing, alignment on vision. Low chance of founder conflict. Good English and easy-to-understand accent, no language barriers in communication. Ability to inspire and recruit star team. People want to work for you. Can grow into “forces of nature”. Direct path to building momentum aka “become a hot seed deal”.
