How to pitch your startup to angel investors
As you can imagine, this is one of our favourite topics! In addition to some brilliant, highly memorable pitches, we’ve had some real strugglers.
We’ve pulled together a shortlist of our greatest tips for you – we hope they are helpful!
What information should I include in my pitch?
First things first, outline your vision and why you want to spend the next 10 years achieving it. Essentially, what is your idea, what problem do you solve, how big is the market, and why is it fundamentally different from what’s in the market today? Include details on your business model, and why customers will pay you more than it costs to provide.
Second, investors need to glean insight into you, the founders. Prove that you have the passion and compatible skills, knowledge and experience to make this a success.
Finally, show how the new funds will be used, and that you have thought about how much money you need to start up and what kind of revenue and profits you expect to achieve over the coming years.
How should I present the information?
Investors get hundreds of proposals a week, so it’s important to make yours memorable, and repeatable. The person you are pitching, if interested, will most likely have to distil your proposal into a few lines to get his or her colleagues on board as well. So your job is to make this as easy as possible.
- Make it personal. A (short!) memorable personal story that puts this business idea in context can go a long way. Especially if it serves a dual purpose of highlighting the business needs or disruptive model, and gives insight into your character and personal circumstances.
- Keep it short. Should have no more than 10-15 slides, with a one-page executive summary upfront.
- Use pictures. They really do speak a thousand words, and are much more memorable.
- Be natural. You live and breath this business day in and out. It should feel completely natural talking about it, like the most interesting conversation in the world. Be sure to practice a lot, and avoid any language or terminology that doesn’t feel natural or comfortable.
To find out more about pitching to angel investors, see the following Freston Ventures articles: