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How to Create a Great Pitch Video - eBook

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How to Create a Great Pitch Video - eBook

  1. 1. General Advice Warning & Disclaimer Before making any decision on the basis of this presentation, you should consider the appropriateness of its content having regard to your particular investment objectives, financial situation and individual needs. The information contained in this presentation is for general information purposes only. The information is provided by CapitalPitch Pty Ltd and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the ebook or the information, project, services or related graphics contained in the ebook for any purpose. Any reliance you place on such information is therefore strictly at your own risk. In no event will CapitalPitch be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this presentation. Throughout this presentation you are able to link to other websites which are not under the control of CapitalPitch Pty Ltd. We have no control over the nature, content or availability of these sites. The inclusion of any links does not necessarily imply a recommendation or endorse the view expressed within them.
  2. 2. Table of Contents Why do Pitch Videos work? Why make a video? What does your video need to have in it? Presentation Tips Delivery Methods Communication Information Equity Crowdfunding FAQ Introduction - Part 1 - Part 2 - Part 3 - Part 4 - Part 5 - Part 6 -
  3. 3. Why do Pitch Videos work? INTRODUCTION
  4. 4. Investors are very time poor. This means it’s imperative to grab their entire attention, and hold it, while you tell your story. And what better way to do this, than with a video? Kickstarter statistics have shown that a project with a video is 147% more likely to reach its funding goal, than a project without a video. When investing in businesses for equity, investors are effectively betting thousands of dollars on your team and vision. They’re betting not only money, but time as well: time to perform due diligence, time to keep tabs on your business over the coming years, and time until they may (or may not!) see a return on their investment. The stakes are bigger, so your Pitch can’t just be good: you need to knock it out of the park to inspire confidence in investors. To help, we’ve put together a guide to creating a great Pitch video, to capture potential investors’ attention and get them excited about your business, and confident in your team.
  5. 5. Why make a video? PART ONE
  6. 6. Why is there such a radical difference between the success rates of capital raises with videos and those without? Differences in capital raising success rates can be attributed to a number of different factors: 1. A video, especially featuring you and your team, helps investors engage with your business on a personal level. As humans, we’re hardwired to respond to faces, emotion and other people. By showing a human element to your business you can begin to establish a relationship with potential investors, and engage them with your vision. 2. A video confers legitimacy to a capital raise. Putting not only your name, but your face, to a capital raise makes the project appear much more legitimate to potential investors considering giving their money to a stranger. The production value can especially impact on how an investor sees your business.
  7. 7. 3. A video requires full attention, so people engage better with them. A good video can command an investor’s full attention for as long as they’re watching. This means that you have an opportunity to hold an investor’s attention, captivate them with your revolutionary idea, and ultimately, sell your team and your business. 4. A video demonstrates your commitment to the raise and the business. Your video and your Pitch is a direct reflection of your business. A well produced video will prove to investors that you’re serious about raising capital and serious about building and marketing a great business.
  8. 8. What does your video need to have in it? PART TWO
  9. 9. The purpose of your video is to get investors enthused about your capital raise, and so needs to address a couple of key areas. Your video isn’t a traditional kickstarter video: you’re not only selling your product or service, but your business model as well. Think of it as a compelling executive summary, in video form. Here are the topics we suggest you cover: Your ‘Why’, The problem and your solution Outline why you started the business, your passion and your vision. Move onto the problem you found, and your solution. Doing this as a story can create a memorable experience that investors will remember, and help them connect with you and your brand. The target market and your Unique Selling Proposition Next, talk about who your target market is, and why you think these people will want your product or service. Discuss your unique selling proposition (your “unfair advantage”), and how that will help your business succeed.
  10. 10. Market opportunity Make sure you clearly communicate to investors the market opportunity, and how your business is uniquely poised to take advantage of it. How big is the market size, and how much of the market can you segment? Sales, Revenue & Business model Briefly discuss how you plan to make money from your distinctly competitive product or service. This is especially important for products or services with unconventional business models. Don’t go into too much detail, this should be adequately covered in your documents. Traction - Customers & Partners Talk about what traction you’ve already experienced. Discuss any large milestones or metrics that show that you’re onto a winner, such as customers and sales. Also mention any partners or mentors who will add credibility & rapid growth potential to your business.
  11. 11. Team, Advisors & Directors Quickly introduce your team and their experience, as well as your executives and advisors. Outline how their experience and passion will lead your business to success. Use of funds Discuss what the money you’re raising will be used for. Knowing there’s a plan in place, investors feel comfortable their money will go a long way and ensure more traction!
  12. 12. Presentation Tips PART THREE
  13. 13. Now you know what your video needs, let’s talk about how to go about it. Presentation: it’s not what you Pitch, but how you Pitch it. 1. Put some effort into the production of your video: Your video doesn’t need a million dollar budget, but it should be professional and high-quality. Camera phones won’t cut it anymore. We recommend you get your video produced professionally. 2. Be enthusiastic! You’re changing the world and disrupting the status quo - be excited! You want your investors to see your passion and get excited too. 3. 90 seconds is golden for a Pitch video: Your video should be about 90 seconds long, which is the optimal length for communicating with time-poor investors. Aim to get your investors interested, you want them to get back to you with a list of questions, begging for more information.
  14. 14. 4. Make your thumbnail interesting! The best video in the world is no use if nobody plays it! Make your thumbnail interesting and inviting, so people want to click play on your video. 5. Use YouTube annotations to guide your audience to the Pitch: YouTube is one of the best tools around for getting investors to your Pitch. Use pop-up annotations with links to your Pitch Deck to get maximum bang for your buck. Here’s how we use annotations to keep viewers engaged, and remember, by constantly linking back to your resources, they’re more likely to consume your content.
  15. 15. Delivery Methods PART FOUR
  16. 16. Connect with your audience. 1. You’re the star! When investing in a business, investors are not only placing their faith (and money) in the idea of your business, but also the team behind it. Starring in your own video and connecting with investors on a more personal level will help them trust you. 2. Professional, but not boring: Investors are largely investing in their free time, as a side-project or a hobby. They don’t want to sit through another boardroom presentation. Make your video professional, but also exciting and inspiring. 3. Be true to your culture You’re not just looking for a dollar, you’re searching for a long-term partner. A good investor will need to work alongside you and your team to maximise value, so you should give them a good sense of the company culture they should expect.
  17. 17. 4. Call them to action! A Pitch video with no call to action is just entertainment. End your video with something like “come learn more about our journey” and an interactive link or button to take them to your site, to convert your viewers into investors. Source: https://edscotti.com/wp-content/uploads/2015/08/VideoStatsInfographic-e1464703628767.png
  18. 18. Communication Information PART FIVE
  19. 19. Get your point across. 1. Tell a story: The human brain has developed to remember stories better than facts and figures. Weave your product or brand into a story about real people that investors can connect with. 2. Focus on benefits, not features: A good salesperson will tell you what it does, not how it does it. Whilst details are important, outlining the big picture will always be more important to investors.
  20. 20. Equity Crowdfunding FAQ PART SIX
  21. 21. Q: “What can and can’t I say about my Pitch to the general public?” A: In Australia, the Corporations Act says that there is a ban against general solicitation when promoting your Pitch to the public. This means that an offer of equity for sale can not appear in your Pitch, but information on how you will use the new funding is okay. This is not legal advice and if you have any questions or concerns about the content of your video being in breach of the law, you should seek independent legal advice. Q: “What information should I provide before and after an investment?” A: Before an investor decides to invest in your company, you are required to provide a detailed strategy on how you plan to use the money, as well as a host of other financial information, which should be included in your Pitch Deck. After investing, you will be required to routinely share information about how your business is doing.
  22. 22. We hope you enjoyed our guide to creating Pitch videos! If this eBook has helped you at all, feel free to browse the rest of our premium resource section, packed with information for entrepreneurs and investors! Interested in connecting with over 7,000 like-minded individuals? Click here to join our Startup Investing Australia LinkedIn community.
  23. 23. About CapitalPitch Entrepreneurs solve the world’s biggest problems, so it’s madness investors reject 99% of opportunities. CapitalPitch is a tech-enabled VC and lead investor in elite Seed and Series A stage startups. We help startups become investor ready, lead the investment round via our venture fund and syndicate the round with smart and strategic follow-on investors. We help investors by being a comprehensive filter, showcasing revenue-generating startups with rigorous and transparent due diligence. We provide direct investment access to follow on rounds via pro-rata rights. Why are we here? Entrepreneurs solve the world’s biggest problems but lack of access to capital is killing them. We believe sophisticated, accredited & professional investors should more easily be able to invest in the future of job creation & innovation. For more about CapitalPitch, see our website www.CapitalPitch.com For FREE downloads, videos, eBooks, blogs & resources, see our website http://hub.capitalpitch.com
  24. 24. Apply for Funding CapitalPitch is investing in startups generating $10k - $250k /month revenue and seeking to raise $500k - $3m. If this sounds like you, then click here to apply for funding now! Apply Now CapitalPitch Pty Ltd Level 2, 50 Bridge Street Sydney NSW 2000 Phone: 02 8188 3807 www.CapitalPitch.com

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