How to Create the Best Investor Presentation – techniques from psychology
April 13, 2016
Five ways to create the best investor presentation
If you want investment, you need the best investor presentation. But investment decision-making is not totally rational. Are you using all the tricks to be more persuasive in your investor presentations? Psychology techniques can nudge even the most experienced investor.
Here’s how you can create the best investor presentation
1. Set high expectations
Our expectations shape our actions. This leads to those expectations being met: a self-fulfilling prophecy. That’s why placebos are so effective in treating illnesses. Because we expect to feel better after taking medicine, we do feel better.
How can you use this for more persuasive investor presentations?
From your first contact with the investor, start setting high expectations.
- If you send an email make it concise, focused and well-written.
- If you are using a placement advisor, influence the words they use to describe you.
- If you have media coverage send it in advance.
Like this, you will set high expectations.
2. Prime your investors for the best investor presentations
Connected associations can influence actions, thoughts and behaviours. For example: People were subliminally exposed to a logo for just thirteen milliseconds. They were then asked to list unusual uses for a brick. Those who were shown a logo associated with creativity (Apple) generated a higher number of uses for the brick. They also had more creative ideas than those exposed to a logo without creative associations (IBM).
How can you use Priming for your investor presentations?
Trigger positive associations for your business by well-chosen small talk. For example, use www.onthisday.com. See if the date of your pitch coincides with the anniversary of a legendary explorer or historical event. Mention this fact while building rapport at the beginning of your pitch. You’ll activate the investors’ mental associations of successful risk-taking, adventure and legacy.
3. Invest in design
This Research shows that using an extra colour in an annual report improves an experienced investor’s ranking of that company. The effect was as just strong as when the researchers added a 20% increase to the company’s previous year’s revenue.
How do you use this for your great investor presentations?
Get professional help with the look and feel of documents you present, including your Private Equity Pitch Book. A strong first impression will set high expectations and increase the perceived value of your offer. And you’ll raise investors’ attention levels.
4. Seek out your similarities
Repeatedly, researchers have found that we are more likely to agree to do things if those people asking are similar to ourselves. It doesn’t matter how incidental the similarity (such as a shared date of birth or similar fingerprint), but the less common it is, the more powerful the effect.
How do you use this for your great investor presentations?
Find areas of common ground, either in your pre-pitch research or in the opening small talk. The persuasive power of similarity also extends to body language (Jacob et al, 2011). If you (subtly) lean forward when the investor does, position your hands in the same way and match their tone of voice, you are more likely to build rapport with them.
5. Leverage the start and end of your pitch
The order in which you present your information can influence investors’ perceptions.
These researchers found that the first piece of information provided was most important when investors’ assess both the past performance and future potential of a company. In another study researchers showed investors different presentations of the past performance of two funds and asked them to choose one. One fund had better short-term results while the other had better long-term results.
When short-term results were presented last, the investors chose the fund with better short-term results and vice versa. Why? Because people tend to over-emphasise the last piece of performance data presented to them.
How do you use this to create the best investor presentations?
Make sure your start and finish are particularly strong.
Position any weak arguments in the middle of your pitch.
- If your company has better short-term results, place this information last.
- If your company has better long-term results, finish with these.
- If you know that your investors will be seeing a lot of pitches in a short period of time, try to secure either the first or last slots.
These techniques may seem minor by themselves. However, their cumulative impact can make all the difference when you want to secure that crucial second meeting with an investor.
We can support you to create and deliver persuasive investor presentations
Benjamin Ball Associates are the experts in advising and coaching for better investor pitches. We help you create and deliver more persuasive investor presentations. We advise and coach private equity firms and polish portfolio companies.
Our clients include Permira, ECI, Sovereign Capital, Deutsches PE and Frog Capital.
If you want to polish your performance in investor meetings or re-work your pitch documents, get in touch. We can transform the impact you make with investors. We deliver fast, effective results.
Call Louise on +44 (0)20 7018 0922 or email firstname.lastname@example.org to find out more.
Video: How Private Equity Funds can pitch, present and persuade more effectively
Paul Farrow is a Partner at Benjamin Ball Associates. In this video from SuperReturn US East, Paul discusses the common mistakes made by Private Equity funds when communicating with potential investors. He reveals the unexpected personality trait that investors look for in fund managers, and why LPs don’t want to ‘be taken through your pitch presentation’.
He shares essential advice that will improve your fund’s messaging, help you stand out and impress prospective investors. Click the play button below to watch:
About Benjamin Ball Associates
At Benjamin Ball Associates, we help clients to communicate better with investors.
Over the years the BBA team has coached thousands of senior executives globally to present powerfully. You get access to a transformational toolbox of techniques to help you become a clear, confident communicator.
We’ll help you create a powerful first impression that hooks and engages your audience immediately and we’ll transform you to deliver clearly, confidently and with impact.
Speak to Louise on +44 20 7018 0922 or email email@example.com to find out more and discuss your upcoming investor presentation.
Contact us for a chat about how we can help you with your presenting.
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