How To Pitch To Investors: 7 Crucial Things To Know

Investor presentations are intimidating no matter what round you pitch for. Your audience is more than just an audience, they are the determinant for whether you take the next step with your company… or not.

There’s more to those landmark presentations we’ve all come to know and love beyond the deck and the idea. It’s how they effectively present their idea that is part of the secret to success. So how does one deliver an effective speech alongside a captivating deck?

Here ww’ll lay out the 7 things you need to know about how to pitch to investors so you can get the funding you need to grow.

1. Know who you are pitching to

Sounds like common practice, right? But you’d be surprised how many presenters don’t know who they are talking to ahead of time! If you don’t know your investor’s preferences and pains, how can you emotionally engage with them?

Research your investors before you step into that room. You want to get a better feel for their point of view. How they determine what makes a successful pitch and what doesn’t. What kind of businesses they fund and do not fund.

Consider these elements beforehand and tailor your speech to highlight the aspects that will spark your investors interest.

2. Address risks and concerns ahead of time

There are many risks investors review during a startup pitch. What’s the biggest concern an investor would have funding your industry?

When you address this directly, it shows an investor you know your market and it increases credibility for your brand. If you don’t know, address their concerns at your 5-minute check-in.

The goal here is to identify and understand the current climate of your industry so you can pitch a solution accordingly.

Learn more: The Ultimate Pitch Deck Guide For Raising Capital

3. Press into their FOMO

VC’s don’t want to miss out on the next Facebook or Google. If you have other investors on board, it’s acceptable to namedrop them on your Ask slide.

4. Pitch by analogy

Expressed by Reid Hoffman in response to his LinkedIn Series B, use analogies to other successful outcomes that showcase your company’s potential. According to Hoffman, this helps refer investors to what they already understand.

If you are in seed, you’re probably considered a concept pitch, or one that does not have much data. This can be difficult to provide support for your concept. But fear not for failure, because pitching by analogy will help mitigate investor concern and improve your chances of funding.

See more pitch advice: LinkedIn’s Series B Pitch to Greylock

5. Openly discuss competition

Talk about your competition openly with investors. You don’t want them to go off and find competitors you chose to leave out in hopes they would see you at a better advantage.

If you do that, it’ll immediately discredit your company. Instead, use the “Magic Quadrant” or Steve Blanks “Petal Diagram” to show your landscape and how you outweigh what’s already on the market.


6. Promote partnership

Everyone in the room knows why you are there. You need money. However, VC’s and Angels can provide plenty more than just the money you need to grow.

They can offer an extensive network that can help with manufacturing, customer acquisition, overcoming unexpected challenges – and everything in between.

Remember to pitch for partnership rather than take the money and run.

7. Pay attention to body language

With great presentation comes great body language. Do some deep breathing exercises before you pitch. Stay calm and confident in what you are pitching. An investor will be able to spot any insecurity indefinitely.

Parting words…

The Pitchsonify blog is a resource for presenters who want to improve their skills. If you like these 7 quick tips, check out our Ultimate Pitch Deck Guide for Raising Capital and get nearly everything you need to know about pitching to investors.