This blog post was written by former Senior Investment Analyst Ruchit Majmudar. He has since moved on from JetBlue Ventures to help create a new fund, but offered some great advice for founders before he left.
As a member of the investments team at JetBlue Ventures, my primary role is to source and review as many relevant startups as possible. As such, I have the unique perspective of seeing dozens of pitch decks each week to identify the best potential investments for our firm.
As you can imagine, not every pitch deck makes the cut. In fact, only a few of them make it to the next stage. I’ve noticed that many entrepreneurs struggle to create a compelling pitch that will help them stand out from the crowd — so much so that this is the most common question I get from founders during mentoring sessions.
Whether you’re a seasoned entrepreneur or just starting out, mastering the art of pitching is essential for securing funding and growing your business. Here are six recommendations that can help you.
Share a story
When it comes to pitching your startup to venture capitalists, it’s important to remember that they’re not just looking for a good investment opportunity. They also want to work with entrepreneurs who share their passion and drive to make a difference. One of the most powerful ways to make a personal connection with investors is to share your own story. By sharing why you started your company, you can help VCs understand your motivation, vision, and commitment to success.
Do your research
Having an effective pitch requires more than just having a great idea or a solid business plan — you need to make sure that you’re targeting the right investors. Each investor has their own unique background, experiences, and areas of expertise that shape how they evaluate potential investments. Some VCs may have a deep technical background, some may be career operators, or some may come from the industry they are investing in. Make sure you take the time to understand their background and areas of expertise.
In addition to understanding their background, look them up on LinkedIn, Instagram, or Twitter — if appropriate. This can help you get a sense of their values, interests, and personality. For example, I love to travel, and that’s evident from my social media platforms. When entrepreneurs bring their personal travel experiences into their pitch, I find it a great way to get the conversation started.
Keep it short and sweet
When it comes to creating a slide deck for your pitch, less is more. While you may be tempted to include every detail about your business, this may not be the most effective strategy. Limit your slide deck to 7–10 pages. You want to make sure your pitch is memorable and impactful, and that may mean keeping your slide deck short and to the point.
In terms of content to include, here are some key points you’ll want to hit:
- Focus on the problem you’re solving: Your pitch should state a clear and compelling description of the problem you’re solving. This may be a pain point that customers are experiencing and one that your solution addresses effectively.
- Emphasize your unique solution: Once you’ve highlighted the problem, it’s time to introduce your solution. This should be a succinct explanation of how your product works, and what makes it unique compared to existing solutions.
- Demonstrate your market opportunity: Finally, you’ll want to demonstrate the size and potential of your market opportunity.
Focus on your team
While having a great idea is important for investors, the team behind the business is just as important. Show investors that you have a strong and capable team that can execute your business plan, overcome challenges, and ultimately, drive success.
At the Seed and Series A stage, investors are often more interested in the qualitative factors. The entrepreneur’s passion, drive, and vision can be just as valuable as the quantitative metrics. Identify the strengths of your team members and how they will contribute to the business’s ultimate success.
Remember, investors are not just investing in your business idea, they’re investing in your team. Your business model or the market can evolve drastically — but a good entrepreneur and team can make necessary pivots and be successful. It is in the best interests of both you and the investor to back a team that is agile and able to take the business where it needs to go.
Know your numbers
As an entrepreneur seeking investment, it’s crucial to have a solid grasp of your company’s financials, including revenue projections, burn rate, and customer acquisition costs. VCs want to know that you’re able to manage your cash flow effectively, especially in the early stages of your company’s growth. Be prepared to discuss your plans for managing your cash flow, including how you plan to use the funds you’re seeking.
Knowing your numbers and being prepared to discuss them can build trust and confidence with potential investors. Just remember to keep your financials concise and clear, and be prepared to answer any questions investors may have.
Follow up and say thanks
Following up and saying thank you can make a huge difference in building a relationship with a VC. It shows that you value their time and appreciate the opportunity to pitch to them. Even if the pitch didn’t result in a deal, sending a thank you note can be a great way to open the door for future opportunities.
Investor updates are also an important tool for keeping your investors in the loop. By sharing updates on your progress, you can build excitement and momentum around your business, which may be useful for raising future rounds of funding. When you send out investor updates, it’s not uncommon for VCs to reach back out, which can lead to new opportunities down the road.
There are many strategies for creating a compelling pitch. These are my top recommendations, but you should take the time after each pitch to review what worked and what didn’t, then make changes accordingly. Good luck!
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