Investor Presentation Pitch Killers - Cleve Langton
I’ve made some of them in investor presentations in the 11 startups and early stage companies in which I’ve been involved as part of the C-suite, board or as a significant investor. I’ve also seen many made in over 60 pitches that I’ve reviewed as part of the Columbia Angel Network Operating Council and other angel network groups. Live and learn.
Killer #1: Less is more. Too many slides, too many words, too many visuals. Impulse is to tell investors everything about everything about you and your product. Focus on “need to have” points, then move to “nice to have” ONLY if there’s time.
Killer #2: Corollary to # 1. Use the clearest, most relatable presenter. That may or may not be the CEO. CEO opens but if she / he is not that good a presenter, pass off the role to the best presenter.
Killer #3: Pitch to investors that know your category. Impulse is to pitch to as many investor groups as possible. That can be a time-consuming mistake — particularly in specialized areas such as tech and healthcare. Target investor groups that focus on your niche or category.
Killer #4: Failure to convincingly show your “moat” or competitive insulation. Big mistake is to overly rely on things like IP protection. Investors know that suing or defending is a hard, expensive route to take. Show first-mover advantage, concrete benefits or technologies that are hard to duplicate.
Killer #5: A product or service concept attracts investor interest, but it is confidence in the management team that gets them to write the check. Confidence in management experience and an exit record are the primary, and frequently the only qualifiers.
Killer #6: Not making use of funds clear. Investors want to see how their infusion of capital is going to directly lead to increased valuation. Too many unsuccessful presentations fall short on compelling reasons why and where the funds will make a decisive difference.
Killer #7: Underfunded. The company knows it needs $1mm to cover the run rate to fully establish it in the market but they go for a lower raise to attract a larger investor pool. Result? Savvy investors pull out because the funds are seen as insufficient to make a difference. Without a lead investor, smaller investors retreat. Don’t reduce the target raise; make investor terms more compelling.
