How much time you have to deliver a pitch to investors will greatly affect your approach and content. For a five-minute presentation followed by a Q&A, you will have a different approach compared to a one-minute presentation. So, how do you know what to include in a short pitch? What about a 20-minute pitch? We’ve got you covered.
The one-minute pitch:
This brief time slot is a little brutal—you have to be clear and concise—but if you’re nervous about speaking in front of people, there’s one big benefit: it’s over quickly. The challenge, of course, lies in using the time as wisely as possible.
Think of a one-minute pitch as the absolute heart of your business: What problem is your business solving? Projecting confidence and having the clearest, most concise explanation of your product or service possible is key.
Jackie Wu created Rook, a flying security camera, and received funding after pitching an incubator. Jackie says, “The biggest thing is, you have to know what problem you’re solving and how your product/service will solve it. We articulated that very clearly to the investors. That is the one-minute pitch.”
A five-minute pitch is when you can start branching out from your core message. In it, you’ll cover the problem your business solves and how you’ll solve it, but you can include other important details like your competitive advantage and why your team is the best for the job.
Forbes has a great example of a winning five-minute pitch from a pitch competition. The winning entrepreneur offers some important advice: avoid unrealistic financial projections (you’ll look like an amateur), and always copy edit your pitch deck. A typo or misspelling in such an important event says to investors that you aren’t detail-oriented—not exactly the message you want to be sending.
Caroline Cummings has successfully raised nearly a million dollars in angel investment. To help entrepreneurs achieve funding success, she’s distilled the process into a series of manageable takeaways and has even created a great format for a 10-minute pitch.
Caroline suggests this format for your pitch:
-Tell a story
-Explain your solution
-Describe your successes
-Define your target market
-Explain your plan for customer acquisition
-Outline your competition
-Describe your business model
-Provide your financial projections
-Introduce your team
-Clarify your funding needs
-State your exit strategy
To present a polished and professional pitch, practice it. You should know the key points you’ll mention and the order you’ll present them in, whether you use a pitch deck or not.
If you have the opportunity to pitch for 20 minutes, it’s safe to assume you probably have a larger block of time, like 40 minutes or an hour, in which to cover both the pitch and the Q&A. Guy Kawasaki, Apple’s former chief evangelist, has what he refers to as the 10/20/30 rule, which is a good guideline for longer pitches.
It goes like this: If you have a pitch deck of slides for your presentation, use no more than 10 slides. You should be able to pitch from these in 20 minutes, and you shouldn’t be using a font smaller than 30 points.
Starting from the heart of your pitch allows for more detailed expansion in longer iterations. With 20 minutes, you can not only cover the high points listed in the 10-minute pitch, but also include a brief product demo or elaborate on your business model.
Here is some advice from successful entrepreneurs on how to prepare for a pitch and increase your chances of success:
1. Assemble a solid team: Highlight why your team is the best and uniquely capable of achieving your goals.
2. Have a plan and structure: Writing a business plan beforehand makes it easier to create your pitch and provides something to reference.
3. Bring a backup: It’s wise to have a hard copy of your pitch deck in case of technical difficulties.
4. Practice: Get comfortable explaining your business in a relaxed manner. Familiarize yourself with the material but avoid sounding robotic or being thrown off by interruptions.
5. Make them say, "Tell me more": Peak the interest of your audience by showcasing traction or providing entertainment. External validation and stimulating interest are key to reducing the need for investors to take a leap of faith.
6. Tell your story: Think of your pitch as a compelling narrative with characters, a problem, a pathway, and a solution. Elaborate on the product, incorporate statistics, and use humor when appropriate.
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I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
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