A few of us participated in a webinar about angel investing put on by Hyde Park Angels on February 16. The title of the webinar was “8 Steps To the Perfect Pitch” and it is available to be seen in its entirety below. It’s about 90 minutes, but that includes a bunch of Q&A. Scroll down to read the Cliff’s Notes.
The content was delivered by Alida Miranda-Wolff of Hyde Park Angels. You’ll want to watch the first half of the video to get the full context of what I list below. Here are the 8 Steps:
STEP 1 – Explain the value
If your audience cannot understand the value, there will not be an investment opportunity. Furthermore, you must be able to articulate how that value will persist in the future.
STEP 2 – Explain how you are creating the value
This was the most important part, in her opinion. Ms. Miranda-Wolff advised to use an anecdote to illustrate why your solution is the “missing piece.”
STEP 3 – Illustrate traction with key metrics
Show meaningful metrics only, she said, and offered a few examples: month-over-month user adoption, repeat users, customer or partner growth, or revenue growth. Metrics mean nothing without context.
STEP 4 – Demonstrate “why” you are going to win
Identify the competition and why you can win business away from then, and how you will win later when the competitors fight back.
STEP 5 – Show your roadmap (…or don’t)
Ms. Miranda-Wolff gave warnings at this step, because she sees a lot of entrepreneurs go wrong here. She warns not to be too specific, keep it concise and high level, lest the investors hold you to your exact words, instead of staying flexible and reacting to your customers’ demands. If you can’t explain the roadmap concisely, leave it out of the presentation and let the investors ask.
STEP 6 – Demonstrate future financial success
The financial model should be build flexibly in case your investors ask how a change will affect the model. Be prepared to defend the logic behind the numbers.
STEP 7 – Highlight why your team is the right one
This is the slide that investors spend the most time on. Ultimately, you are trying to tell then how, together, this team will execute on the business model.
STEP 8 – Explain how much capital you will need and what you’ll use it for
It has been Ms. Miranda-Wolff’s experience that most investors want to see an approximate two-year timeline on the milestones.