May 6th 2015

3 things that you should know for a successful investor pitch

What could be worse than not selling your arguments at the critical moment!
In order to ensure that this nightmare scenario doesn’t happen to young start-ups, our EXPLAIN team was on the road again to check out the start-up scene – this time at Karlsruhe Venture Day, and with our own workshop. For those of you who didn’t attend, here are the three most important lessons for succeeding at an investor pitch.

An investor isn’t interested in buying your product

Enthusiastic start-up founders tend to confuse a sales pitch with an investor pitch. Giving detailed explanations of product and customer value is exactly the wrong way to go about selling your idea at an investor pitch. Clearly, the correct approach would be to point out its market potential and to emphasize the business model’s scalability.

Getting to the point instead of TMI (too much information)

Be it at a 7-minute pitch, as was the case on Venture Day, or in a one-hour presentation appointment, your quickest way to successful pitching is a compact pitch deck and a well-organized set of back-up slides, which can be useful for follow-up questions. After all, the same principle applies to all presentations: a picture often says a lot more than a thousand words!

Practice makes perfect

Pitching is an acquired skill that needs practice. Following these guidelines will get you halfway!
Take an example from the sporting world. A successful sportsperson will compete at regional level first before taking on a national competition. This means you should practice your persuasion skills with your B investors before pitching to A investors.

One final tip:

Practice your investor pitch with one of our experts in an EXPLAIN workshop.
Contact us and learn to pitch like a pro!