Picture it. The day of your pitch has arrived. You’ve worked tirelessly on your idea, sacrificed weekends and evenings, and invested a fortune in sweat equity. You know your market inside out. Your idea is innovative, disruptive, and scalable. Now on to the fundraising – a challenging part of the entrepreneurial process.
By now you’ve probably watched hours of the BBC’s Dragons’ Den to get a feel for what it’s like to pitch to venture capital investors. While this can be good homework, the reality of pitching is quite different. In most cases, pitching isn’t a dramatic showdown - it’s a conversation about a business opportunity, with your pitch in the middle.
There are easier things to do than pitch to a room of seasoned investors. There’s a huge amount of information to research and understand - from simply knowing your product, to understanding the trends and nuances of your target market.
Following on from our previous article on how to create a pitch deck, this guide gives key tips on how to deliver your pitch with confidence and clarity.
What is an investor pitch?
A pitch is the entrepreneur’s chance to deliver, in their own words, their business plan to potential investors. The structure of a pitch is quite flexible, but usually consists of three main sections:
Introduction – This is where investors get to know you and vice versa. Be yourself and take this as an opportunity to get comfortable and prepare for the pitch. This part shouldn’t be underestimated, as it’s important that you and the investor get along.
The pitch – The main event. This is when you will present your business plan; it is usually done through presentation slides and a demonstration of your product.
Questions – Questions can be daunting, but if you’ve researched your industry and know your product then you shouldn’t worry. If you’re asked something you don’t know, tell them.
How to prepare for your investor pitch
Now you have an idea of what to expect, below are some tips on how to present yourself and your investment opportunity. This is by no means an exhaustive checklist but serves as a guide to deliver an effective pitch.
1. Presenting yourself professionally
This section will feature things you’ll likely have heard before in the context of meetings and interviews. However, they’re just as crucial when pitching to investors. A lack of professionalism can undermine even the strongest business proposal.
Be punctual – First impressions count. Arriving late signals a lack of organisation and disrespect for an investor’s time. Better to arrive early, settle in and gather your thoughts. However, don’t be too keen and arrive excessively early as investors may not be ready and find your eagerness more of an annoyance. If you arrive and find yourself with 30 minutes or more to spare, go to a nearby coffee shop and wait.
Look the part – You don’t need to arrive in a suit, but smart casual is a safe bet. Being overly formal can be off-putting but flip flops and board shorts won’t inspire confidence. Professional appearance sets the tone and helps investors take you seriously. Hitting the right notes on a psychological level in terms of feeling comfortable is important.
Be authentic – Starting off on the right foot is key. Investors back people as much as ideas. An investor will want to know what you’re like as an individual, so be yourself and build trust.
Practise – If you need notes or can’t remember the next slide, you probably haven’t done enough preparation so rehearse until it feels natural. You might find it useful to have an ‘elevator pitch’. This is a 60 second, easily digestible pitch which describes your whole business in a nutshell. When dealing with time-short individuals, it’s important to be concise and keep their attention. You don’t want to be cut short due to time constraints mid-presentation.
Showcase the team – You may or may not have a complete team at this point. If you do, investors will want to hear from them and to see if their interests are aligned with yours. Bringing a team member to a pitch shows capability beyond the founder. If you bring someone with you make sure that they’re able to answer the tough questions with the same confidence as you.
2. Presenting the product effectively
This is the moment to show what you’ve created and why it matters. The product section answers two questions: what have you built and why should anyone care?
The pain – Let the investor know exactly what value your product brings. Identify one clear customer need and how your product fulfils it. At this stage there should only be one – avoid diluting your message. Focus all your effort on answering this one pain point and then expand to other opportunities. Strengthening the core business of a startup is vital to its success. Take Uber for example; they first set out to make it easier for passengers to get taxis by tapping their phone. The rest of their innovative story came afterwards.
The story – A well-crafted narrative creates an emotional connection and makes you and your product memorable. Investors hear countless pitches, so you don’t want to get lost in the clutter. Tell your story in an engaging way. Share the inspiration behind your idea and you’ll make sure you stand out.
3. Researching your investors and audience
Understanding each other is important. By the time the day of the pitch arrives, the investors will have done a fair amount of research about you. They will likely know your team’s work history, education and will have drawn conclusions on your ability to execute your idea.
You should do the same for them. Treat this like preparing for an interview. A pitch about how efficient your code is will sound impressive, but if your audience’s background is in consumer services, it won’t mean much. The better you know your audience the more persuasive you will be. These are some of the things you should do:
Know your audience – If you aren’t compatible, it may save a lot of time and effort to cross an investor off your list. The fundraising process is long and you don’t want to be traveling around the country pitching an idea to investors whose interests may not align with yours. Research factors like the specialisations of the fund, its size, capabilities and value-adds, the possibilities of follow-on investment, and the portfolio of companies they are managing. A quick look on their website should uncover most of the information you need.
Support your claims – If you’re going to say your total addressable market is £10 billion, back it up with facts and reasoning. If you’re using more innovative tech than competitors, know why your competitors aren’t doing the same. This is a chance to show off your market research and technical credibility.
Prepare your slides carefully – A poorly made deck can be as much of a turn off as poor punctuality. Put the effort in to make it engaging, fluid, and as simple as possible. Slides should only highlight the key points. The investor will want to focus on what you have to say.
Know your numbers – Financial fluency is non-negotiable. When presenting and answering questions, the key financial metrics should be second nature. Be ready to answer questions like ‘what is your cost of acquisition to lifetime value ratio’. Fluency with your financials inspires confidence.
Would you trust someone to deliver on their business plan if they hadn’t taken the time to prepare properly for their pitch?
Pitching to investors is never easy, but preparation and authenticity can make all the difference. From presenting yourself professionally, to telling a compelling story about your product and backing up your claims with solid research, every detail matters. Remember, investors are looking not just for a great idea, but for founders who understand their market, know their numbers, and have the resilience to see their vision through.
While there’s no single formula for a perfect pitch, using these tips as a guide can help you deliver your best performance. Don’t be afraid to let your individuality shine - originality and personal conviction are often what set successful entrepreneurs apart.
