Pitching Investors Effectively

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-How not to waste time on pitching the wrong investors?
-How to deliver a message?
-7 pitching rules

Published in: Business, Economy & Finance

Pitching Investors Effectively

  1. 1. Pitching Investors Effectively Shahar Pitaru FoundersGuidebook.comCopyright © 2012 Shahar Pitaru
  2. 2. Agenda Don’t waste time on the wrong investors How to deliver a message? 7 pitching rulesCopyright © 2012 Shahar Pitaru
  3. 3. Pitching the Wrong InvestorsCopyright © 2012 Shahar Pitaru
  4. 4. It’s common knowledge that you should… Know Your Audience But when pitching to investors you should first…Copyright © 2012 Shahar Pitaru
  5. 5. CHOOSE Your Audience Here’s why…Copyright © 2012 Shahar Pitaru
  6. 6. Secret #1 Not all investors are actively investingCopyright © 2012 Shahar Pitaru
  7. 7. Ask Yourself #1 Do they have money? When did they raise money last time? > 4 Years = Not Active How many companies have they already invested in? > 10 Per Partner = Not ActiveCopyright © 2012 Shahar Pitaru
  8. 8. Secret #2 Investors don’t invest in what they don’t understandCopyright © 2012 Shahar Pitaru
  9. 9. Ask Yourself #2 Do they understand your space? Did they ever invest in companies in your space? Tip: Contact the partner that deals with your type of companies!Copyright © 2012 Shahar Pitaru
  10. 10. Summary #1 Find an investor who has money and invests in your spaceCopyright © 2012 Shahar Pitaru
  11. 11. How To Deliver A Message?Copyright © 2012 Shahar Pitaru
  12. 12. What You Want…Copyright © 2012 Shahar Pitaru
  13. 13. What You Usually GetCopyright © 2012 Shahar Pitaru
  14. 14. The Triune Brain Neocortex: Analytic Limbic: Emotions Reptilian: Survival InformationCopyright © 2012 Shahar Pitaru
  15. 15. The Algorithm 1. If it’s not dangerous, ignore it 2. If it’s not new or exciting, ignore itCopyright © 2012 Shahar Pitaru
  16. 16. For Example… An asset allocation service (that aims not to suck)Copyright © 2012 Plantly, LLC
  17. 17. To win here If new, SummarizeTarget here and forget the detailsCopyright © 2012 Shahar Pitaru
  18. 18. Example from SeedCamp TLV, March 2012Copyright © 2012 BukIt, LLC
  19. 19. Example from SeedCamp TLV, March 2012Copyright © 2012 BukIt, LLC
  20. 20. Example from SeedCamp TLV, March 2012 This is what the audience felt after seeing these numbers, and… SeedCamp decided to invest in BukItCopyright © 2012 Shahar Pitaru
  21. 21. Summary #2 • You can’t reach the analytical brain without passing through the crocodile brain • Start with an intriguing sentence • No abstract concepts • Only concrete factsCopyright © 2012 Shahar Pitaru
  22. 22. 7 Pitching RulesCopyright © 2012 Shahar Pitaru
  23. 23. #1: Create CuriosityCopyright © 2012 Shahar Pitaru
  24. 24. #2: Detailed Slides Are BoringCopyright © 2012 Shahar Pitaru
  25. 25. #3: Demo Your Product ASAPCopyright © 2012 Shahar Pitaru
  26. 26. #4: Only 20 Minutes!Copyright © 2012 Shahar Pitaru
  27. 27. Otherwise…Copyright © 2012 Shahar Pitaru
  28. 28. #5: Let the investor ask for the detailsCopyright © 2012 Shahar Pitaru
  29. 29. #6: Practice On Your Dad’s Rich FriendCopyright © 2012 Shahar Pitaru
  30. 30. Only Then Pitch The Big BoysCopyright © 2012 Shahar Pitaru
  31. 31. #7: Pitch Simultaneously To Create A MarketCopyright © 2012 Shahar Pitaru
  32. 32. Conclusions • Don’t waste time on the wrong investors • Pitch to the crocodile brain • Don’t use slides! Demo your product!Copyright © 2012 Shahar Pitaru
  33. 33. What To Pitch? • Introductory email: http://venturehacks.com/articles/elevato r-pitch • Elevator pitch: http://vimeo.com/16447520 • Investment deck: http://venturehacks.com/articles/deckCopyright © 2012 Shahar Pitaru
  34. 34. Recommended BooksCopyright © 2012 Shahar Pitaru
  35. 35. Shahar Pitaru @pitarus FoundersGuidebook.comCopyright © 2012 Shahar Pitaru

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