Do you have a startup? Are you fundraising and sometimes find that it is a struggle to get through to investors?
Have you ever asked yourself if you speak the investors’ language?
It might sound like an odd question. You may say if the investor speaks the same language as you. then the answer is: “yes”. But most probably the answer is “NO”. The answer
This month so far I have reviewed 10 pitch decks, 2 of this morning, and spoke to some 15 entrepreneurs. All looking for funding. All have great products, and amazing visions and are great entrepreneurs.
However, one thing is missing. One big thing, the pitch that they send simply does not speak to the investor. They say that the investors don’t understand them and the 30 seconds is not enough to explain what they do. Only if they could meet an investor who is willing to listen to them. Only if they could show the investor how great their product is and what the future would be. They are convinced this is going to be the next big thing. Earn them lots of money and be a “unicorn”.
I know. I’ve been there. I pitched for years, I pitched to many investors, from 30 seconds to several hours. From a quick beer to three-hour lunch or dinner meetings. I chose amongst the best and most expensive restaurants to tell them all about my product and plans. I think I bored them to death and some of them must have thought “OK I listen to him but at least I get a free meal to cover my time”. Of all those expensive lunches and dinners, I got very little investment. So much so that I started thinking “Why don’t they understand what I am telling them”.
Honestly, I am not making it up, I couldn’t figure out why the investors couldn’t see why my business or plan was not interesting. I couldn’t understand why they wouldn’t invest. I was pouring everything I had into this project, I was putting my money where my mouth is but still struggled to attract investors. We spoke the same language and yet we didn’t.
Have you ever asked yourself how an investor would look at your pitch deck? How would they decide and what information they would like to see in order to make the next decision to call you for a chat?
14 years later and only after I sold one company for a small sum, I started being approached by many startups. I could only invest small sums of just a few thousand euros but I had to start analysing whether I should or not. That’s when I started to realise the questions I never answered and why I failed so miserably in those years.
It is not enough to speak the same language as investor but you need to answer their investment question. You need to give them some basic number of costs, time line, profit, market size. Basic numbers are always much better and you show potential with market size in terms of numbers or euros. It is important to make it fathomable and realistic. Fairytales are too good to be true and everyone stays away from them.
Speaking the investors language is simple, yet so many of startups and entrepreneurs are struggling with this simple task.
If your pitch deck is failing to land you a deal. Book a quick free 30 minute call with me on calendly.