Position your Startup for Success // Tips on Getting Your Pitch Right

Position your Startup for Success // Tips on Getting Your Pitch Right

It doesn’t matter how innovative, well thought-out, or potentially profitable your product idea is–if you can’t attract investors to your startup, your business will face serious difficulty scaling up and achieving wide-spread success and that’s why knowing how to pitch your startup is essential to your success.

Of course, raising capital presents a unique set of challenges that many startups struggle with. 

Your prospective investors aren’t going to just take your word that your business is going flourish; you need to demonstrate to them that investing in your startup is likely to provide them with a good return on their investment.

To successfully attract capital as an entrepreneur you will be required to build a strong, compelling pitch that convinces investors to back their startup.

Also Read // 11 slides that you would like to include in your next pitch deck

As the competition for investors’ attention continues to grow, entrepreneurs need tips to follow in order to maximize their chance of winning over investors when pitching their startups.

In a recently held Ask me Anything session held by Matteo Rizzi a renowned author and investor and also the Founder of Timepledge, at Nairobi Garage Kilimani, Matteo shared a few tips on getting your pitch right.

Here are a few guidelines that might be quite helpful as you work on your next pitch:

Business Description: Let your audience know upfront what you do and let it be catchy.

Keep it short and simple. Start out with a brief explanation of your business idea that immediately conveys your vision and purpose. 

Explain the problem that your startup is attempting to solve and why your business offers the solution. 

Outline how your business plans to generate revenue. Above all, avoid getting bogged down in details that distract from your message.

The problem: Focus on why your offering is wanted. Give the feeling of being inevitable

The solution: Why are you the best company to solve the problem? Highlight your USP

The market and your strategy: How big is the business opportunity? Use references close to your product and solution. Don’t be afraid to use comparable companies as a reference

The traction: What have you achieved to prove what you have stated so far

The competition and why: You have to show that you understand what the customers want. If you don’t have any  competitor year, include  comparable companies

The team: Investors are investing in the people more than in the business They look for:

• Experience in the field 
• Successful exits
• How many years have you  worked together

The team should be cross-functional

The Ask: How much are you raising,  and quick snapshot for use of proceeds.

What type of entrepreneur are you?

During the session, Matteo also spoke about the two main types of entrepreneurs which consist of the builder and exiter.

Distinguishing the two types of Entrepreneurs, Matteo explained that The Exiter looks for capital (even if she has it available already), while the Builder boot-straps and usually keeps most of the control.

The Exiter builds a company to … well … exit, whilst a Builder will likely stay longer around, and step aside to let someone of trust lead, or eventually sell as well of course, but with possibly a different multiplier.

On the Matteo Rizzi Website, The Exiter will be 170% focused on the company, do one project at a time, and be extremely diligent (also because the investor won’t let her get distracted by anything else). 

On the other hand, The Builder will be more prone to experimenting, partnering with other businesses, and sharing perspectives and revenues with other players.

There is no good or bad here, of course. This is more a reflection about understanding which kind of entrepreneur you want to be, and possibly help you avoid basic judgment mistakes when it comes to choosing a co-founder, or the type of investors you want to pick (there are investors who are more Builders than Exiters, especially at a very early stage and if very much into the business you are in (so passionate they will almost come working with you on top of investing).