making a pitch
Sean Moynahan
1. Know the investment firm.
If you want to get on the radar of an investor, you'll want to know something about the person and what his or her interests are. "Because if you don't … I lose interest immediately," Lenihan says.
Venture capital firms,and sometimes angel investors,have areas of expertise or a theme in their investment patterns. Making sure your company fits that theme is key to your pitch.
2. Know your numbers, and listen carefully.
Aspiring entrepreneurs must know the key financial drivers of their business. If a founder has to "get back to you" on revenue figures, it's a red flag, Lenihan says.
But they must also listen carefully when an investor challenges those numbers. "If I tell you I don't buy your model, I wouldn't expect you to say 'Oh, OK, you're right, let me go start over,' but I do expect a conversation," he says. Oftentimes, founders answer questions by repeating parts of their prepared presentation, unable to adapt or admit any areas for improvement.
3. Show why are you excited.
In other words, why is your company the greatest thing you could be spending your time on? "It's amazing how many people come in presenting their business in an almost clinical way," Lenihan says. "You don't want to be bouncing off the walls, but you want to be able to explain why this is an enormous opportunity you actually care about, with real concrete and tangible reasons."
It's about creating a personal connection with the investor. While it's important to identify a market poised for growth, to solve a pain point and articulate a customer acquisition strategy, investors want to work with people they like. The human side of a pitch meeting can be as important as the idea and the supporting data, Lenihan says.