You can have a strong product, paying customers, a credible team and a significant market, and still deliver a pitch that leaves investors unsure. The story is in the wrong order. The slides carry too much. The audience leaves unable to say what the company actually does.
None of that means the business is weak. It means the opportunity wasn’t communicated clearly enough to be assessed. Investors should tell a weak pitch from a weak business, but you can’t rely on every investor taking the time to find the difference. In a competitive funding environment, the pitch may be the only version of your business they see.
I’ve screened more than 30 pitches for Keiretsu Forum London, and I keep seeing the same problem. The founder knows the business inside out but can’t explain it clearly to investors, and that can cost them the funding.
Where did the communication fail?
After a disappointing pitch, don’t assume the proposition needs reinventing. First find where the communication broke down:
- Did the investor understand the problem?
- Could they picture the product?
- Was the commercial opportunity clear?
- Did the evidence support the claims?
- Was the next step obvious?
The answers usually point to one of four causes: the message, the structure, the evidence or the delivery. Each needs a different fix.
Test it before an investor does. Give your pitch to someone outside your sector and ask three things: what does the company do, what proof is there that it’s working, and what is the money for? If they hesitate on any of them, the pitch needs work, not the business.
Not sure which problem you have?
If you can’t tell whether investors are questioning your business or struggling to understand your pitch, send me your pitch deck along with a short summary. I’ll tell you where the communication is breaking down.