Many founders’ pitches struggle to explain their investment proposal. This is often due to over-emphasis on the slides instead of the story they’re trying to tell. Working with entrepreneurs for the last few years, I’ve built a framework to help make their pitches clear, concise and compelling.

We begin by describing your ‘Purpose’ – the value proposition and competitive advantage of your product. Then we explain your Plan for delivering this, including the Ask you need. Then we choose the Presentation slides for a pitch deck which supports this narrative. Finally, we will discuss the live Performance of your pitch to an audience!

Purpose

A previous post presented a framework for writing your ‘Purpose Pitch’. This explains how to sell your products and services or attract investment in your company. My ‘Pitching your Purpose’ workshop explains how to do this in a less than a minute and fewer than a hundred words.

We will cover the remaining stages in the next few Newsletters, beginning this month with how to describe your Plan to potential investors.

Plan

If you’re pitching to raise investment, you’ll need to present a Plan for growing your venture. Added to your Purpose, this forms an Elevator Pitch – a short explanation of your investment proposal. We can explain your Plan by describing your Market and business Model, the Progress you’ve made and your Roadmap for its growth. Then we will introduce the Team who will deliver this and how much funding you’re Asking for.

Market & Model

Your ‘Purpose Pitch’ introduced your customers’ needs and how your product’s benefits fulfil them. But investors also want to know nature and size of your market and your business model for earning revenue. Ideally this should include not just how your company intends to make money, but also the partners you need to provide a solution to your customers’ needs. January’s Newsletter this year explained some of the ways DeepTech companies make money:

Progress & Roadmap

Demonstrating any progress you’ve made in designing, building and selling your product will help persuade investors. They will also want to see your plans for developing your products and business including key milestones and deliverables. It’s often best to present this as a ‘timeline’ which includes both your achievements and aspirations. You should clearly show the value and timing of your sales forecasts and funding needs to explain your investment proposition.

Team

Early-stage investors tend to focus on a venture’s Founders. Your team’s abilities to work together and grow with your company are key to its success. A balance of technical and commercial skills helps convince investors you can build and sell your products. Your people are worth more than your patents or value propositions as they will continue adding value to your business! Experienced advisors can also show how it’s done and open doors to industry contacts and funding.

Ask

Investors want to know how much you want from them, what you will spend it on, and what you will achieve with it. This should aim to increase the value of your company not just its size! Think carefully about how you will use their funds, and what you can deliver in return.

Action

Investors are busy people who receive many Pitch Decks every day. So be grateful for their time spent listening to you! Then ask for another meeting. Nobody will write you a cheque on the spot, but they might continue the discussion…