improvised thoughts

The tools entrepreneurs need to make a great pitch to potential investors.

Last week was a momentous week for the whole team in the London Wayra Academy - it was our Demo Day on Wednesday.

I am hugely proud that all the teams did a brilliant job of pitching their unique businesses to an amazing group of over 100 investors with the objective of securing future funding.

A while ago I started drafting a brief post on what makes a great pitch - initially I felt really strongly that two important ingredients are fundamental to a good investor pitch:

• Passion
• Practice

Passion, because the challenge of being a successful entrepreneur is nuts - it’s like waking up and saying you’re going to climb Everest. And so if anyone is equally nuts enough to invest their hard cash into your endeavour, they’ve got to believe that you’ve got what it takes to reach the summit.

Practice, because, one of the privileges of working at Wayra is that I get to hear pitches from entrepreneurs from all over the world. While some of the newest teams pitch brilliantly, it is an indisputable fact that the teams that joined Wayra at the beginning present more powerfully as direct consequence of literally having pitched many more times. There is no short-cut to pitching 1,000 times.

Two vital ingredients, both more important than the microphone and a clicker suggested by my photo. But now the presentations are completed, I think that success in pitching for investment requires much more. My broader thoughts are:

Preparation. It is so important that entrepreneurs obtain quality input from experts into crafting their pitch-deck. For example, feedback from experienced entrepreneurs and investors. And most importantly, entrepreneurs should actively seek and exchange constructive feedback with their peers. Which is why I believe the ‘Wayra-family’ is arguably the most valuable component of the acceleration programme. And why I’m also a fan of ‘Don’t Pitch Me Bro’.

Talent. Sounds obvious really - it also sounds uninfluenceable - but it is: practice helps; but more effective is who you choose to pitch. I find it remarkable that entrepreneurs often feel it is both their right and privilege to lead the pitch whether or not they are the best presenter. It is not incumbent on the founder to pitch, it is incumbent on the founder to ensure that the best pitch is delivered.

Authenticity. Never confuse talent with ‘slickness’ - slickness can actually camouflage talent. What investors want to see and hear is authenticity.

A good story. Your pitch needs a clear ‘beginning’, ‘middle’ and ‘end’. Fundamentally, the context - why are you doing this. It’s about demonstrating why your business is a good idea, and why you are overwhelmingly driven to pursue it. The combination of which needs to leave the unmistakable confidence that despite your ambition being (possibly) ridiculously impossible, there is real belief that you are actually going to conquer this mountain.

Evidence that you will harness the power of digital:

• To acquire customers in volume, and at pace - contagiously via viral marketing; effective use of social-media; and/or search/SEO compatability
• To use the accumulation of customer data effectively for the customers’ advantage

A willing audience. Take responsibility for driving attendees. And your behaviour will determine how ‘willing’ they are. Smile; use humour appropriately; establish rapport. 

Know your numbers. Opinion is divided on the validity of financial projections in pitches. However, know your numbers (inside out and backwards).

“Up-and-to-the-right-graph” - feedback from one of the investors advised that this is currently hot in the US - a slide/graph that evidences demonstrable quantifiable momentum - whether that is financial; registrations; downloads etc etc. It not only evidences traction, it also clearly illustrates the key focus of the CEO. It doesn’t matter if the stats are ‘usage’ related (and not financial) - if there is traction then investors will believe the revenue will follow.

Talk about your team, but not for too long. In one sentence, what makes you special.

Make the right request - especially if you’re asking for investment. The amount of money that you are looking to raise is an especially important issue - and so I will write a separate post on this specifically.

Congratulations to teams who did such a brilliant job pitching. Congratulations also to Ashley Stockwell and Alex Hawkes who have done a remarkable job of managing the London Wayra Academy.

Sincere thanks to Wayra’s expert coaches and mentors who helped the entrepreneurs to refine and finesse their pitches - especially the immensely talented Dale Murray.

Thanks also Ash for taking the photo of my hands, charged and loaded with two tools of our trade: microphone and clicker - moments before the investors took their seats for our introduction to a full day of pitches. What a great day.

Source: Simon Devonshire’s blog