What Investors Look For In a Pitch – Top Tips

Are you a business looking to raise money? Are you writing an investor presentation for a successful business?  What do investors look for in a pitch deck? What will investors ask you?

Meet the Author: Benjamin Ball

Ben is the founder of Benjamin Ball Associates and leads the presentation coaching and pitch deck creation teams. Formerly a corporate financier in the City of London, for 20+ years he’s helped businesses win with better pitches and presentations, particularly investor pitches. He is a regular speaker and a guest lecturer at Columbia Business School and UCL London.  Follow Ben on LinkedIn or visit the contact page. 

Pitching To Investors and Raising Investment is Hard

It’s not easy securing investment for a business, even a tech business such as a highly sought-after AI business. The right investors are inundated with pitches, so it is essential that you deliver a compelling and well-structured pitch presentation. Understanding what investors look for will increase your chances of success.

At Benjamin Ball Associates, we have been helping businesses of all sizes pitch to investors for 15 years.  We help them pitch to venture capitalists and to PE. We help them craft their investment story, create compelling investor pitch decks and coach the management team to impress investors.  

Based on our experience, here’s a guide to what investors look for in a pitch deck and the best way to craft a presentation that addresses the most important factors and resonates with potential investors.

Let’s look at each of these essential tips in more detail:

1. Have a Clear Problem Statement

What Investors Look For: A definition of the Issue

Investors want to know that your business addresses a real and significant problem. To increase investor interest, your pitch deck should articulate the problem clearly and succinctly. You should aim to teach the investor about your industry so that they clearly grasp the issues your clients face.

How to Present:

– Start with a compelling story or statistic that highlights the issue your product or service solves.

– Clearly outline why this problem matters and who is affected by it. Demonstrate a large market and use case studies.

Example of what investors look for

A few years ago we helped a tech business that was selling an automated KYC (Know Your Customer) solution for banks.  We dedicated the first few pages of the investor pitch to explaining what the KYC problem was, how much it costs the banks and how long it took. Then, as they described their solution, investors could understand it was a great idea and the value add of the business.

2. Be Clear About Your Unique Value Proposition

What Investors Look For: What Sets You Apart

Your unique value proposition (UVP) explains how your solution stands out from the competition. Investors want to see that your tech business offers something that is not only innovative but also viable.

How to Present

– State what makes your product or service unique. This could be innovative technology, a superior user experience, or a disruptive business model.

– Use comparative analysis to show how your offering outperforms existing solutions.

Example

In the KYC example above, we compared the time and effort the automated KYC solution saved vs the current manual approach that most banks used, thereby showing investors the obvious reason that customers would buy this new technology.

Why Pick Benjamin Ball Associates for Your Coaching

At Benjamin Ball Associates, we’ve been coaching business people to improve their business communication skills for over 15 years.  Our coaching is fast and effective.  We work with individuals and with companies, one-to-one and in groups.  Call us today to learn more.

“I honestly thought it was the most valuable 3 hours I’ve spent with anyone in a long time.”

Mick May, CEO, Blue Sky

Our most popular training courses include:

• Presentation Coaching
• Public Speaking Coaching
• Investor Pitch Support and Coaching

Trusted by some of the most successful companies globally

Speak to Louise on +44 20 7018 0922 or email info@benjaminball.com to transform your speeches, pitches and presentations.

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3. Define the Market Opportunity

What Investors Look For: Size and Growth Potential

Investors are interested in the market opportunity. They want to know the size of your target market and its growth potential.

How to Present

– Provide data on the current market size and projected growth rates. Use reputable sources and market research to back your claims.

– Segment your market and identify your ideal customer profile.

Example

As well as showing the usual TAM, SAM, SOM type statistics, you can add additional credibility by looking at the market in various ways.  For example, what share of the current market do you have now?  How fragmented is the market? What is a realistic goal you might reach? The better your potential investor understands your market, the more likely they’ll believe your projections.

4. Outline Your Business Model

What Investors Look For: How You Make Money

A clear and scalable business model is crucial for attracting investment. Investors want to see how you generate revenue and achieve profitability. Show them what people pay, how often they need to make buying decisions, how loyal they are.  

How to Present

– Describe your revenue streams, whether they’re from subscriptions, licensing, or transactional sales.

– Include pricing strategies and your plans for additional monetisation.

– If appropriate, share standard metrics such as ARR, MRR, Churn, CAC etc

Example

 “We operate on a tiered subscription model, offering various packages that cater to different business sizes, ensuring we capture a wider customer base while maintaining healthy margins. So far our CAC is down to $10 with ARR per customer of $100.”

5. Show Traction and Milestones

Demonstrate Progress

Showing that your business is gaining traction can significantly strengthen your presentation. Investors want evidence that your product/service is working, you have a strong track record and that numbers are moving in the right direction.

How to Present

– Share key milestones you have achieved, such as product development stages, user acquisition metrics, or revenue figures.

– Use charts and graphs to illustrate growth and progress visually.

Example

 Over the last three years, we have reduced CAC by 90% to £10 and reduced churn rates from 30% to 7%.  Now we are working on further increasing our revenue per customer beyond the £100 per annum by cross-selling new products.

6. Give an Analysis of the  Competition

What Investors Look for: An Understanding the Landscape

Prospective investors want to see that you understand the competitive landscape and are clear why you stand out and have a competitive advantage vs the competition.

How to Present

– Provide a competitive analysis that outlines key players in your market, their strengths and weaknesses, and your differentiators.  A 2×2 matrix can be a powerful way to show how you stand out from the competition.  

– Highlight barriers to entry that protect your firm from competitors.

– Consider a table showing how your offer differs from the competition

Example

“Our competitors primarily target enterprise clients, leaving a significant gap in the small business market. Our tailored approach not only serves this segment but also builds strong customer loyalty.”

7. Explain Your Sales, Marketing and Distribution Strategy

What Investors Look for: How You Reach Your Customers 

A well-defined sales plan, marketing plan and distribution strategy shows investors how you reach your target customers and scale your business. Finding customers and persuading customers is the hardest part of any business.  The more you can reassure investors that you really understand this part of the business is key.

How to Present

– Outline your marketing and sales strategies, including channels, tactics, and partnerships.

– Discuss any existing relationships with distributors or platforms that will help accelerate your market traction.

Example

“We’ve learned over the last 2 years that our partnerships with small business associations is the cheapest route to market.  We’re investing in our sales team to grow this route to market and expect to see a trebling of revenues over the next two years.”

8. Demonstrate a Strong Team

Showcase Your Expertise

Investors often invest in teams as much as in ideas. A strong team with relevant experience will build confidence in your business.

How to Present

– Introduce your team members, highlighting their backgrounds and expertise, particularly in the tech industry.

– Include any notable achievements or experiences that position your team to succeed.

– Include relevant companies they have worked for that will add credibility.

Example

“Our team includes a former cybersecurity analyst from a leading firm, a software engineer with experience at a top tech company, and a marketing expert who has scaled startups in the tech space.”

9. Be Clear How An Investment Will Be Used

What’s Your Plan?

You want to demonstrate a clear plan for investment.  That means showing where you are investing, when and what you expect to get from that investment.  The more tangible your plans, the more credible they will appear.

How to Present

– Show a timeline of the areas in which you need to invest, what you want to achieve and when

– Be clear about the value investment will add to the business.

Example

Here’s an extract from a recent high quality  pitch we created for a client.

10. Don’t Be Afraid of Discussing the Risks

Why Risk Matters

Every business has risks, and an investor’s job is to properly understand and quantify those risks.  If you say there are few risks, then it sounds as if you don’t properly understand your business.  A great way to impress is to be clear about the risks your business faces.

How to Present

– Identify the risks your business faces and describe what you are doing to mitigate those risks

– Quantify any particularly large risks and have to hand the numbers so you can ask questions.

11. Have Clear Financial Projections

The Numbers Matter

Investors will scrutinise your financial plan to assess the potential return on their investment. Don’t just show financial statements; summarise your financial information and make it easy to understand.

How to Present

– Provide realistic and financial projections for the next three to five years, including market potential, revenue, expenses, and profit margins.

– Clearly explain your assumptions and how they align with market trends, your market share and your business strategy.

Example

 “We project doubling revenues to reach $58 million within the next 3 years, with a gross margin of 52%, based on our current pricing strategy and market penetration rates.”

12. Have a Clear Call to Action

What You Want from Investors

At the end of your presentation, be clear about what you’re asking for. Whether it’s a specific amount of investment or an introduction to a potential partner, a strong call to action helps guide investors.

How to Present

– Clearly state the amount of funding you are seeking and how you plan to use it.

– Outline the benefits for investors, including projected returns or exit strategies.

Example

“We are seeking a $5,000,000 investment to expand our development team and enhance our marketing efforts, with the goal of achieving a 5x return within five years.”

13. Get Professional Help to Prepare Your Investor Pitch

Why You Need Help

As a management team, you are probably speaking to investors just a few times in your careers. Whereas professionals prepare management teams to speak to investors every day.  Not taking expert advice during the process would be like a professional sportsperson refusing the advice of their coach.

Example of How to Impress Investors

When we support management teams who are pitching to prospective investors, we often help them with a three stage process.  

• We run a messaging cracker session with you to clarify the most powerful investment story. 
• We create a compelling investor pitch deck that addresses all the needs of potential investors
• We coach your team so you shine when you meet investors and you stand up when faced with due diligence and important questions.

Like this you can be fully prepared for investor meetings and can be sure the management team is ready to meet potential investors  

How to Make Sure Your Pitch Works With Investors

If you are well-prepared, your investor presentation can confidently showcase your business’s potential and position yourself for success with investors.

With the right approach, you can turn your investor pitch into a powerful tool that not only highlights your company’s potential but also inspires confidence and action from those across the table.

Whether you’re seeking a Series A round, expansion finance or engaging institutional investors, get in touch to discuss how we can help you.

For help with your investor presentation, call Louise Angus today on +44 207 018 0922 or info@benjaminball.com.  

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We can help you present brilliantly. Thousands of people have benefitted from our tailored in-house coaching and advice – and we can help you too.

“I honestly thought it was the most valuable 3 hours I’ve spent with anyone in a long time.”

Mick May, CEO, Blue Sky

For 15+ years we’ve been the trusted choice for leading businesses and executives throughout the UK, Europe and the Middle East. We’ll help you improve corporate presentations through presentation coaching, public speaking training and expert advice on pitching to investors.

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Speak to Louise on +44 20 7018 0922 or email info@benjaminball.com to transform your speeches, pitches and presentations.

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