It’s a common question we get all of the time: Why do investors care about the quality of your pitch? If it’s a good company, what’s the big deal?
Well, in addition to helping them understand your business and the revenue model, during your pitch presentation, investors are also inferring several things in that short period of time:
First, they want to know if you are passionate. If you’re not passionate about your business, then why should someone else be?
Next, they want to know if you are committed. When you inevitably hit speed bumps, will you dig in and make it work, or will you head for the hills?
Investors also want to see if you can sell to customers? If you can’t communicate with the investor who has already given you their attention, how will you be able to market your product or service to future customers? Better yet, how will you be able to recruit the right team?
Last, and this applies especially for early-stage companies, they want to see if you can clearly communicate so that you’ll be able to continue to raise money in the future.
Ready to learn more about why your investor pitch presentation is so important? Watch this video:
Video Transcription
Why does the investor care the quality of the presentation? What’s the big deal? It’s a good company, just what’s the big deal? Well, there’s actually a few big deals. There’s a few reasons why it matters. But one reason is, in addition to understanding the business and the revenue model, investors are inferring multiple things from that short period of time that you’re in front of them.
So let’s walk through what they’re inferring. They’re inferring, are you passionate? If you’re not passionate about your business, then why should someone invest in it? They’re inferring, are you committed? Because no one’s going to invest in the business if you’re going to bail on it when the going gets rough. They want to know when you’re going against rough, you’re going to dig in. I describe it as the only thing that I know, the only thing that is a given, when we make an investment in a company is there are going to be speed bumps and there’s going to be road bumps. That is the only thing I know. And there’s going to be a point in time when that CEO is going to put the whole company on their back and they’re going to run it around the speed block, or they’re going to grind it over the speed bump. Literally, everything else is an unknown.
They’re also going to be inferring, can you sell to customers? Because if you can’t even pitch me, then you’re probably not going to be good at selling your customers. And by the way, that also applies to, are you going to be able to recruit the right team?
And then this last one seems to be elusive, particularly if it’s early stage. If it’s an early stage company and I’m an angel investor and you can’t communicate with me really well, I’m going to wait for one of those other 40 companies that as an angel investor I look for, for somebody else has got a good idea and bet on them because at least they’ve got a shot raising money the next time.
So those are the things they’re inferring from that pitch. As you watch the free lesson or free mini course on the website, what you’ll learn is by doing that Read Me pitch in advance, you’re effectively pre-pitching them so that when you go in and do your list of your venture with your slide deck, you’re having a conversation here instead of the ground floor. It gives you all kinds of advantages so if you screw it up, they’ve already been pre-pitched and it helps you out. There’s other hidden advantages of it, too, which I’m not going to go into it because I have that fabulous free course that I spent a lot of time putting up there.