2 min read Pitching your startup is one of the most important aspects of landing new investors. Emphasizing your story, growth, and competitive advantage helps you to make a strong first impression. In this article, we dive deeper into these three components of your pitch. Use this information to help write or revise your investor pitch.
Tell Your Story
When pitching your business plan, use the story format for greater impact.
- Start with the problem you faced in the industry.
- Show how you couldn’t find a solution.
- Show how you created your own solution.
After you address the issue of not finding a solution, be sure to show others are now coming to you for that solution. Along the way you can talk about how you built the team and chose a go-to-market strategy.
- Highlight the challenges you overcame.
- Show the current business status and your upcoming plans.
Each element of the story should highlight one aspect of the business plan. A story format keeps your audience engaged throughout the pitch because it flows smoothly and moves the audience along from point A to point B in a logical manner.
Show Your Growth
Most investors look for a growth story. They look for an operational revenue model in the business with increasing numbers on:
- sales
- team
- product
- fundraise
Many startup entrepreneurs avoid talking about their current revenues because they think the investor wants to hear big numbers. This simply isn’t the case. If your company is pre-revenue, you can show how the business model is successful based on the unit economics level. Show you can generate leads, qualify them, and finally close them for revenue that exceeds the cost of acquiring and fulfilling the customer.
Demonstrate Your Competitive Advantage
It’s not enough to say your product is better or your team will execute faster. You must identify your core competitive advantage and show how it gives you at least a 30% cost reduction or a 30% revenue increase over the traditional methods. This could be through:
- network effects
- virality
- channel access
- monetization
If you are concerned about protecting your business idea, then focus on the benefits of your competitive advantage such as:
“Our software reduces cost by 30% through better algorithms.”
You don’t have to go into the details; in due diligence, investors can sign NDAs to see the detailed workings of the business.
Read more on the TEN Capital Network eGuide: The Art of Pitching
Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group
