Most angel investors will agree that they come across hundreds of pitches each month — some in person, others in email; some as PowerPoints, and others as full-fledged business plans. But startups looking to raise capital shouldn’t pan over a 30-plus page business plan, what they really need is an executive summary and a pitch deck, according to Rodney S. Sampson, angel investors, co-Founder and CEO of OpportunitHub, a coworking space, incubator, and accelerator in Atlanta.
Pitch decks done well are one of the most compelling ways to tell your story and get investor interest, in lieu of face to face meetings. They are also critical to your success in the equity Crowdfunding space, Sampson explained during the 2020 Vision Forum On Supplier Diversity hosted by Walmart and Black Enterprise.
Be careful when making initial introductions, cautioned Sampson, noting that investors want to “discover” deals, not get pitched a deal. Whether it is in person or via email find out more about the kind of companies that person invests in, and if your business model doesn’t fit ask that investor to recommend someone else who might be interested your business idea. “When you have an innovative idea capital follows,” added Sampson. He also pointed out that “angel investors hang out at accelerators and coworking spaces, not Starbucks.
You will need a company snapshot of your product, market, capital, timeline, team, advisors, investors, and exit strategy, states Annette McClellan, an OpportunityHub advisor and mentor in residence. Below says McClellan is..
What Investors Look For In Your Pitch Deck
Big idea: What do you do better than anyone else and what problem do you solve?
Company: What is your business revenue model?
Market: Who are you selling to and how will you grow market share?
Advantage: What advantages do you have over your competitors?
Capital: How much have you personally invested and how much are you raising?
Team: Who’s running the business and what’s their level of experience?
Exit: What’s your exit strategy—acquisition, sale, going public, etc.?
Opportunity: What is the ROI? What’s in it for the investor?
What takes your pitch from good to great is the story you tell and how it engages the imagination of an investor. All great pitches communicate an overall narrative about you and your company.
Make sure you spend time pitching investors in person to learn and to get feedback to improve your pitch skill. And take advantage of the new opportunity to get your pitch in front of thousands of investors online via equity Crowdfunding site like Angellist.co and EquityNet.com. Update your deck during your fundraising journey.
Visit www.1000Founders.com to view a sample pitch video, pitch deck, operating agreement, and more.