Thursday, March 28, 2013
Worst Investor Pitches of All Time
It would seem some people forget the purpose of an investor pitch and present a pitch so legendary investors talk about them for all the wrong reasons. Some people forget to mention the ways in which their product or service solve an existing problem. Other people inundate investors with too much information and too many statistics. The worst pitches of all time take such errors to the next level.
One of the greatest errors entrepreneurs make is to state the sum of funds they are requesting at the end of their pitch, rather than the beginning. Investors are busy people who do not wish to wait until the end of a presentation to learn whether or not the funds requested are in the range they are willing to invest for the product or service being presented. The solution is simple. Successful pitches and pitch decks proudly announce who they are and the exact amount of funds they seek at the start. Avoid using a range because the investor will concentrate on the lower end of the range rather than the higher end.
Another pitfall is to spend countless hours on the financial projections. It is critical to consider each aspect of operating expenses at a detailed level and to plan a realistic financial budget; however, investors do not actually rely on these figures as they are essentially a guess. Investors are more interested in whether or not a product or service will fill a gap in the marketplace, the benefits, and the reasons people will use the product or service. They are also interested in the team.
Entrepreneurs often underestimate the importance of the team and the way in which each team member is presented. While the idea of the business is important, investors are far more concerned with whether or not the team will be able to operate and develop the business successfully. Team members must be able to demonstrate how their training or experience has prepared them with the skills required to excel in their roles. Team members should complement each other. If everyone on a team had the same background and skill sets, the business would fail without leadership in guidance in all aspects of the business.
To ensure a pitch deck does not lead to becoming one of the worst investor pitches of all time, be certain to be forthcoming about the specific funds required start the business, focus on the benefits of the business and the reasons customers will follow, and build a complementary team to be able demonstrate the full growth potential of the company.
Posted by Sol Marketing at 3:10 PM | Comments Off on Worst Investor Pitches of All Time