How to Avoid Mistakes in Investor Pitches
August 10, 2022
Investor pitches can be nerve-wracking. It’s your chance to showcase your business, your vision, and your team to potential investors. You want to present your best self, but there are many pitfalls that can derail your pitch.
Let’s explore some common mistakes and share tips on how to avoid them, so that you give a successful investor pitch.
Lack of preparation
One of the biggest mistakes people make when pitching to investors is not preparing properly. Many assume that their passion and enthusiasm for their business will be enough to convince investors. However, investors want to see that you have done your homework and have a solid understanding of (1) the market, (2) your competition, and (3) your business. If you can’t answer their questions, they will assume that you don’t know what you’re doing.
To avoid this mistake, you need to understand what investors are looking for. Depending whether you are a startup, a scale up or a mature business, work through everything that an investor might be interested in. Don’t include it all in your pitch, but be ready to be quizzed. Then, of course, you want to practice your pitch meeting. Not just the pitch you give, but every aspect of the pitch meeting. Keep at it until you’re confident. Get help from someone who knows investors and investor pitches. As the old saying goes, “fail to prepare, prepare to fail.”
Lack of clarity
Another mistake firms make is to be too vague or confusing in their pitch. Investors want to understand your business and its potential. They want to know what problem your product or service solves, how you will solve it, and what sets you apart from the competition.
To avoid this mistake, be clear and concise in your pitch. Use simple language. Avoid jargon and technical terms. Use relevant data points, stories and examples.
Lack of enthusiasm
Your passion is what will get investors excited about your business. If you seem disinterested or unenthusiastic, investors will assume that you’re not committed.
To avoid this mistake, show enthusiasm for your business. Talk about why you’re passionate about it and why you believe in its potential. Use storytelling techniques so that your pitch is engaging and memorable.
Overemphasis on the product
While your product is important, investors are more interested in your team and your business model. Focusing too much on your product and not enough on your team or financials can be a mistake. After all, you are not selling your product, you are selling an investment.
To avoid this mistake, make sure you highlight the market gap, your team and their experience. Investors want to know that you have a strong team in place to execute on your vision. Also, be sure to explain your business model and how you plan to make money for investors.
Lack of authenticity
Investors want to work with entrepreneurs who are genuine. If you come across as insincere or fake, investors will be less likely to invest in your business.
To avoid this mistake, be yourself. Don’t try to be someone you’re not or pretend to know things you don’t. Be honest about your strengths and weaknesses and your vision for your business.
Failure to address potential risks
Investors are always looking for potential risks in a business. If you fail to address these risks in your pitch, it can be a red flag for investors.
To avoid this mistake, be upfront about the potential risks associated with your business. Explain how you plan to mitigate these risks and what steps you have taken to minimize them.
Lack of follow-up
After your pitch, it’s essential to follow up with investors. Failing to do so can be a costly mistake. Investors are busy, and they may not remember your pitch if you don’t follow up.
To avoid this mistake, send a thank-you email to investors after your pitch. Let them know that you appreciate their time and that you’re available to answer any additional questions they may have.
If you want to avoid mistakes in your investor pitch, get in touch. We’ve been preparing people for investor pitches for over 15 years. Many billions have been raised with our help.
About Benjamin Ball Associates
At Benjamin Ball Associates, we help our clients to communicate better. You get presentation coaching for executives.
Over 15+ years the award-winning BBA team has coached thousands of senior executives globally to present powerfully. You get access to a transformational toolbox of presentation skills & 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 transforming your speeches, pitches and presentations.
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