You’ve done it! The big investor pitch is set. Take a deep breath, a sip of that espresso, and a lap around the block to celebrate. Your startup/business venture is taking the next step. Now it’s time to refocus. Investors have a limited amount of time to evaluate your proposal so you need to make every moment during the pitch count. Take a look at the common mistakes we’ve witnessed to make your pitch as strong as possible!
- Failing to Articulate the Problem and Solution One of the most common mistakes entrepreneurs make during an investor pitch meeting is failing to articulate the problem and solution their business aims to solve. Investors are interested in solutions that solve real-world problems and create value. So, it’s important to identify the problem your business solves, how your solution addresses it, and what sets your solution apart from others in the market.
- Not Knowing Your Numbers Another common mistake entrepreneurs make during investor pitch meetings is not knowing their numbers. Investors are interested in the financials of your business and want to see that you clearly understand your revenue projections, costs and profitability. You should be able to provide clear and concise financial projections and explain how you arrived at them. Additionally, do you know your CAC? Are you familiar with your Google Analytics?
- Overcomplicating the Pitch Simplicity is key when it comes to pitching your business to investors. Avoid using technical jargon or overly complex language that can confuse potential investors. Instead, focus on presenting your solution clearly, concisely and in an easy-to-understand manner. Use straightforward language that everyone can understand.
- Not Knowing Your Target Market Investors are interested in businesses with a clear target market and a plan for reaching those targets. You should deeply understand your target customers, their needs and their buying habits. Be prepared to explain how you plan to connect with your target market and how your solution solves their problems.
- Failing to Address the Competition Every business has competition, and investors want to know that you know your competitors and how your solution compares. Be prepared to explain who your competitors are, what they offer, and how your solution is different or better.
- Not Doing Your Homework on the Investors and Their Background Know your audience. Know their background. Know everything you can about who they are and their professional journey. How much does their fund usually invest in a round? What other ventures have they been a part of? Please, I urge you not to overlook your unofficial homework before the pitch.
- Focusing on the Product but Ignoring the Business Model Investors are interested in the business model behind your solution, not just the product itself. Be prepared to explain how you plan to monetize your solution, your revenue streams, and how you plan to scale your business over time.
- Not Having a Clear Ask Finally, one of the biggest mistakes entrepreneurs make during investor pitch meetings is not having a clear ask. You should be specific about how much funding you seek, what the funds will be used for, and what kind of return investors can expect.
Avoid these mistakes to increase the chances of securing funding and achieving success!
For an inside scoop on how investors spot a great investment, listen to Kelly Ford, growth equity investor at Edison Partners, on Bospar’s Politely Pushy podcast with Eric Chemi.
