How to: Create a compelling investor pitch

How to: Create a compelling investor pitch

Most entrepreneurs will need to raise capital to turn their inspired idea into an innovative business that goes from strength to strength at speed.

That means putting together a pitch deck – a short presentation that explains more about the business, and why angel investors, venture capitalists or partners should consider investing.

Given that it is the first impression of your business, and the document that decides whether or not investors will be interested, it’s important to get it right. But in a competitive startup environment, your pitch deck has to be more than adequate: it has to stand out.

Researching the pitch decks of established companies, which are available online, is a good way to learn what makes a compelling pitch. To help you, we’ve also compiled a list of top tips to help you put together a winning pitch.

1. Harness the power of stories

People tend to remember stories more easily than facts, so you need to craft a captivating narrative to hook your audience.

The most memorable pitch decks are the ones that include an interesting or personal anecdote. Learning how to weave your entrepreneurial journey into a compelling narrative that creates an emotional connection with investors helps to make the information you’re sharing more relatable and engaging.

Using an analogy is another great way to make complex ideas more accessible. By comparing your idea to something familiar, you help your audience grasp key concepts quickly.

2. Keep it simple

Investors get thousands of pitches every year, and don’t have time to decipher complex presentations.

Use visuals strategically and sparingly to support your story – they need to enhance the information, not take away from it.

A well-crafted deck should be about 10 to 20 slides to keep your audience interested.

3. Assemble an all-star team

Investors invest in people as much as ideas, and introducing your team is a good way to add credibility. Shine a spotlight on the expertise your team brings to the table, and any strategic partnerships you’ve developed. You can also include any Advisors and investors who’ve agreed to fund your team in the past.

In some instances, your idea may be similar to something investors have seen before, so it’s essential that you prove you’ve got the right team to deliver: a team with a deep understanding of your audiences’ needs, preferences and pain points.

4. Elevate your elevator pitch

You are going to be pitching your business a lot, and the more you practise, the better your delivery.

Present to those (preferably within the startup ecosystem) who can give you constructive feedback so you constantly improve. Rehearse your pitch as many times as needed to sound both passionate and convincing. Even if some pitches don’t work out, at least you’ll know what sticks.

Also, don’t forget to tailor your pitch to your target audience. A great investor pitch is a conversation, so be sure to prepare for potential questions and leave enough time for Q&A.

5. Be realistic and show a clear path to profitability

When it comes to showing market demand for your product or service, numbers and metrics are your best friends. Master the art of presenting your financial model and revenue streams so that you present a clear financial picture and give investors the assurance of early traction and profitability.

When crafting projections, make sure that they’re realistic and prepare a 3 to 5-year runway. This will show investors their short-term earning potential, along with a view into the larger market opportunity that lies ahead.

As for your funding request, go into it with a number in mind, but be open to a range so that you remain attractive to as many targets as possible. You must be able to explain how you landed at your valuation, how you intend to use the capital infusion, and the results this will bring. Besides showing that your solution is scalable, include details about break-even point and key milestones.

You’ll also need to show that you’ve done a thorough competitive analysis, highlighting how you’re better positioned than your competitors - and how you intend to keep them at bay.