Less is more to hook investors in learning about your startup<\/h3>\n
Told they have 30 seconds for an elevator pitch to investors, most founders speak as fast as they can to pack their full 5 minute pitch into half a minute. Their enthusiasm is sincere, but sorry, tm;spa (too much, stopped paying attention).<\/p>\n
The elevator pitch isn\u2019t just an exercise \u2014 it\u2019s your introduction.\u00a0It\u2019s your first and most important pitch. Here\u2019s how to nail it and hook investors.<\/p>\n
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The idea of the elevator pitch goes back to the days when journalists and writers pitched stories to editors during the ride up to the top floors. It\u2019s been adopted into the concept that you have Elon Musk or Warren Buffet cornered in the elevator for the 30 second ride up to the penthouse.<\/p>\n
Although you\u2019re unlikely to run into Mark Zuckerberg on the elevator, there are many occasions when you\u2019ll need a strong elevator pitch.<\/p>\n
You might be at a reception of a startup event filled with angels and VCs. The woman in front of you in the drinks line casually asks, \u201cWhat brings you here?\u201d That\u2019s your cue that\u00a0you have a few seconds\u00a0to wow her.<\/p>\n
If you start in with your problem, solution, and market size, she\u2019ll nod, say \u201csounds wonderful,\u201d and disappear as soon as the bartender hands her a beer.<\/p>\n
Or I\u2019ve invited you to join me as a guest to observe an angel pitch event. Although you\u2019re not scheduled to give a formal pitch that day, you\u2019ll have a chance to introduce yourself to the group. You need to make it quick.\u00a0You\u2019ve only got a few breaths to make an impression\u00a0before we move on to the next guest.<\/p>\n
Or you\u2019re at a wedding and the groom\u2019s uncle is a venture capitalist. He asks you what you do.\u00a0You\u2019ve got\u00a0one sentence to get invited to send him a pitch deck tomorrow.<\/p>\n
Or you\u2019re connecting with an investor on LinkedIn. You have one chance to get us to accept your connection request. Don\u2019t blow it with a page of detail that we won\u2019t read.<\/p>\n
These are the situations where you need an enticing elevator pitch, and if you\u2019re getting out and meeting people, as a CEO should, you\u2019ll be using your elevator pitch dozens of times each day.<\/p>\n
The elevator pitch isn\u2019t a formal pitch and shouldn\u2019t sound like one. It\u2019s your introduction, but more than simply introducing yourself, it\u2019s your\u00a0one chance to grab an investor\u2019s attention and get them begging for more.<\/p>\n
This isn\u2019t the time to attack with a full-court press from which they\u2019ll try to find a polite way to escape.\u00a0This is a seduction. Get them to want you.<\/p>\n
As CEO, everyone you meet falls into one of four categories: potential customers, potential employees, potential investors, and useless people.\u00a0Find out which you\u2019re talking to first, then use an appropriate introduction to\u00a0plant the seed\u00a0that they need to find out more about your startup.<\/p>\n
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The point of the elevator pitch is not to get someone to write a check.\u00a0It\u2019s to get them interested in receiving your pitch deck.<\/p>\n
The point of sending a pitch deck is not to get someone to write a check, but to get them interested enough to invite you to give a full pitch.\u00a0The point of the pitch is to get them interested enough to spend a half day with you in a deep dive into all the details of your startup.\u00a0The point of the deep dive is to get them interested enough to begin the diligence process.\u00a0Finally, at the end of the diligence process, you may receive an investment.\u00a0Every\u00a0step is merely a prelude to the next.<\/p>\n
So relax and stop trying to tell your entire story\u00a0in 30 seconds,\u00a0or 11 slides, or even 5 minutes.\u00a0Tell us enough to get us excited and yearning to learn more.<\/p>\n
For the elevator pitch, you have time for between one and three simple sentences. So, introduce yourself, CEO or founder of your startup. Then\u00a0mention the one thing most likely to pique that investor\u2019s interest.<\/p>\n
The one detail to mention will be different depending on who you are talking to. A financial investor will be more interested in customer traction while an industry specialist may find the technology more interesting.<\/p>\n
Here are a few examples:<\/p>\n
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- Hi, I\u2019m DC Palter, founder of Paltergeist Industries. This is my newest startup after a huge exit last year.<\/li>\n
- Hi, I\u2019m DC Palter, founder of Paltergeist Industries. We\u2019re taking carbon dioxide out of the air and turning it into building materials.<\/li>\n
- Hi, I\u2019m DC Palter, founder of a climate tech startup. We\u2019re just about to close our latest funding round after a big investment by Khosla Ventures.<\/li>\n
- Hi, I\u2019m DC Palter, founder of a climate tech startup. We\u2019ve just signed a deal with Ford to use our advanced battery diagnostics.<\/li>\n
- Hi, I\u2019m DC Palter, founder of a startup cutting the price of water purification by 80%.<\/li>\n
- Hi, I\u2019m DC Palter, founder of a climate tech startup. Our sales are growing 43% month over month and we\u2019ve just opened our next funding round.<\/li>\n<\/ul>\n
What would your reaction be to hearing one of those introductions? For me, they would set me\u00a0drooling, following the founder around the room and begging him to send me more information.<\/p>\n
Of course, I made up particularly attractive conditions. Most likely you\u2019re not in negotiations with Ford yet, may not even have any sales, and can only dream of closing your current round with a big check from Khosla.<\/p>\n
But you have\u00a0something\u00a0<\/em>exciting \u2014 a co-founder or board member with an impressive pedigree, a big name customer, an SBIR grant to develop the technology, or simply an important solution to a critical problem.\u00a0Whatever it is that will get people excited, find a short, simple way to say it.<\/p>\n
Notice my examples didn\u2019t launch into a history of climate change or problems in the industry, didn\u2019t really describe the product or market, didn\u2019t talk about market size or competition, didn\u2019t even mention the investment.\u00a0If the person is interested, they\u2019ll ask. If not, move on.<\/p>\n
Once you have an elevator pitch that\u2019s pulling people in, when you get invited to give a full pitch, don\u2019t revert to the boring presentation.<\/p>\n
Use your elevator pitch as the introduction to your full pitch, and build on top of it, explaining why sales are growing 43% or why Ford is interested in using your technology. Even the full pitch is but one step in the investor seduction process.<\/p>\n
\nHere\u2019s the elevator pitch for my novel: I guarantee it\u2019ll be the most fun you\u2019ll ever have reading about Silicon Valley.<\/p>\n
Want to learn more? The deets are\u00a0here<\/a>\u00a0on Amazon along with 50+ 5 star reviews.<\/p>\n
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