Pitches are presentations created in order to help entrepreneurs communicate with investors to raise money to fund their venture.
What items should you prepare in anticipation of fundraising pitches to potential investors of your concept?
Assuming you have…
Completed your ideation effort,
Validated your product / market fit,
Assessed the competitive environment,
Developed your initial framework related to the startup’s initial branding and marketing,
and are prepared to establish your organization, you should have completed the basics to enable you to begin formal preparations for the funding journey.
The items you will want to prepare include the elevator pitch, the executive summary, a pitch deck, business canvas, cap table and organizational chart. These are discussed in further detail below:
The Elevator Pitch
A brief personal presentation to friends and family and potential angel and venture capital investors. It may also be targeted to people who know investors and may be willing to provide introductions. The purpose of the pitch is to capture the attention of the listener in a manner that compels him or her to learn more about the opportunity. Elevator pitches are typically 30 – 60 seconds in duration, and succinctly present the entrepreneur’s concept / solution, business model, “Go to Market” strategy and value proposition.
An Executive Summary
A 1 to 2 page document that provides an overview of a startup entrepreneur’s business opportunity. It summarizes the key points of the startup’s business model or business plan with a focus on obtaining investor interest for potential investment. The goal of the executive summary is to grab the attention of the investor in a way that heightens the desire to engage further with the opportunity.
Presentations created by entrepreneurs that detail the attributes of a startup opportunity in order to help the entrepreneurs communicate with investors in their efforts to raise money to fund their venture. The presentation, which typically includes approximately a dozen slides, provides a summary of the startup’s business plan and helps investors determine if they have a continued interest in evaluating the opportunity and completing due diligence on the company.
Initial Organizational Charts
Typically depict a high level plan of the structure of the startup organization and the relative level(s) and relationships of the roles/positions expected to be deployed.
Based on nine building blocks, an entrepreneurial tool that enables entrepreneurs to design, develop, articulate, challenge, invent and pivot their strategic business model. The building blocks referenced above include customer segments, value proposition, channels, customer relations, revenue streams, key resources, key activities, key partnerships, and cost structures. It enables the entrepreneur to provide a snapshot of the key aspects of their business model on a single page.
A Cap Table
Depicts the ownership of an entity in terms of the absolute quantities of shares or units owned and the percentages of the total ownership they represent.
These six items will provide a strong foundation for your concept level fundraising pitch.