Here are our suggestions on how you structure your pitch to investors. Regardless of the stage your business is at (e.g. back of the napkin or looking for an A Round), if you can answer these questions clearly, using plain language (and the story you tell is good and compelling), then you will convince others that your startup is ready for them to join, whether it is as an investor or as a team member. Mind you that some of these questions may not be fully answerable at the earliest stages of the start, in which case you should state “I haven’t worked out {fill in the blank}. . . And that’s where I need you, your expertise, and support.”
What is the Company and its Core Value?
o What is the name of the company? It is not real unless it has a name.
o State concisely the core value proposition or the unique benefit the company will provide to address the customer need.
o This is the Company Overview
What’s the Pain/Problem that you seek to solve?
o State the big, important problem that the company is going to solve
o State concisely and clearly why this situation exists and persists
o This is your Market Opportunity
How Big is the Pain/Problem?
o Assert the size of the opportunity you have identified
o Define the scope of the opportunity
o This is the Market Size
What is your Solution?
o State concretely what you will build that solves the problem.
What is the Benefit(s) or Value that your Solution Provides?
o State clearly and quantify to the extent possible the three to five key benefits you provide
Who else provides a solution and why is yours better?
o State clearly and concisely how your solution is better than what everyone does in the industry, including the status quo.
o Do your homework on the competition and don’t misrepresent their strengths or their weaknesses.
o This is your competitive advantage.
How will you get your solution to the Market?
o Focus on articulating the non-obvious, potentially disruptive elements of your strategy
o What are the critical hurdles that the company faces and how will the company address them to get the sale?
o This is your go to Market Strategy
If you can get your solution to the market, how will you make money?
o How do you make money?
o Explain the pricing, the costs, and why this company will be especially profitable.
o Make sure you know the key assumptions underlying your planned success. Be prepared to defend them.
o Be ready to articulate the sensitivity of your business to variations in your assumptions.
o This is the Business Model
Assuming you can get it to market and make money, how much will you make?
o What is your five-year financial projection for the company?
o What are the two to four key metrics that will drive revenues, expenses and growth?
o Convey that you really understand the economics and evolution of a growing a dynamic company
o These are your financial projections.
What will be needed to succeed and how will you and others measure progress?
o What are the capital requirements for the company?
o Map the funding against your key milestones.
o Tie the milestones to the key metrics in your financial projections
o This is your operating plan for the funds you are raising – financing requirements and associated milestones.
Why you? Why now?
o Solidify the core value proposition of your company in words that are memorable and unique to your company.
o If someone were to give a short summary the company, these are the words you want used – the opportunity and the solution
o This is your Summary
