If you have a goal to create a widely successful and highly profitable company that can change the world, you must raise enough money. It does not matter if you are trying to raise $10,000, $1,000,000 or $100,000,000; you will have to ask for that money. Do not lose sight of the goal that you are trying to do a successful business, and you want to allow others to join you, so that is why you are giving the presentation.
Types of investment pitch presentations
There are two main kinds of financial pitch presentations. One may be an investor pitch in which you may have two to five minutes. Your objective is to attract investors or the audience, who will want to watch another more detailed presentation if they are interested. They may even invite you and give you an hour to speak.
The other type of presentation is where you already have your foot in the door to being with an individual investor or a venture capital firm. Then you can lay it all out, giving your project details. This article will provide a step-by-step guide for the process you need to follow to give investors an excellent investment pitch presentation.
Make your Messages Clear
All the books on giving an investment pitch presentation say the same things, but people often disregard the wisdom in them. When giving an investment pitch presentation for two minutes or an hour, you still have to tell the people what you are doing, how you will make money, and what problem you are solving. Tell them the marketplace your product or service is offering. Why do you care about this product? Why are you devoted to this product or service? Who else do you have on board for this project? What are you going to do with this money? These are the questions you must address in your presentation. The major mistake of the presenters of investment pitch presentations is that they do not address these questions.
Explain in simple terms what your business is and what you do. How will you make money with the investments? Investors who do not understand what you do will not be interested in investing money. The investors do not care about all the design elements of the product. They are also not interested in the 10 or 20 patents you have. Patents do not mean anything when the investors do not understand what you are doing. You must tell them how millions of eyeballs will focus on your product or service.
Sometimes the challenge for entrepreneurs is to step back for a minute and see the project from a distance as they have been too close to the product working on it for months. You must look at the project from a new perspective.
Do Address the crucial questions
Give the answers to the following questions.
What is your business?
How will you make money from the business?
What problem are you solving?
What is the marketplace for your business?
Why do you care about this product or service?
Who else is on your team?
Who are your customers?
Common blunders to avoid
Here are the common blunders to avoid at all costs for making a successful investment pitch. Sometimes people are so excited about their investment pitches that they speak too fast because they want to tell you everything about their business. It seems like a high school debate. Do not try to cram everything.
Do not read your presentation.
Do not read your presentation. Nobody likes to be read to because anyone can read the things you read to them silently and faster than you. Do not use an awful PowerPoint with a lot of text and bullet points or text that is illegible.
Avoid the 1% statement
Also, do not make the classic mistake of saying that this market is so big that we will all be rich even if we get 1% of the market. Investors hate that statement. Close to 1% is zero percent, and it sounds much better to say a more significant percentage of the market.
Avoid abstraction in your presentation
Don’t be abstract because abstraction is the number one problem in an investment presentation or any presentation; if you say you have an app to help people socially, don’t leave it at that. Create an app so people can find a perfect mate on their street. Show the app and the street with the feature and demonstrate how someone in the room matches the investor next to you. Be specific. Abstraction is your enemy when you are giving a presentation. Any investor will feel that you are just interested in their money, and you will fail to get any investment from their side.
Most entrepreneurs’ pitches do not make money or receive the response they wanted. By avoiding these mistakes, people will invest money in your business.
If you think of a fantastic business project that will earn a lot of money, you need the appropriate amount to invest in its launch. To collect that money or investors, you will have to speak to people, convincing them that you are the right person to have a project that will benefit all producers and consumers. Your pitch presentation may be short and impart knowledge of the project. The other investment presentation is detailed in which you explain your business goals and objectives so that the investors understand what you are doing and where you will spend their money. Do not make your pitch presentation a data dump, or you will distort the message. Do not speak too fast and do not be abstract in your presentation. Avoid common blunders that the average entrepreneur makes.