Who doesn't love a great story? The phrase "once upon a time" prompts anticipation of intriguing storytelling. And you can capture that spirit not only in a bedtime story, but also in a pitch to raise money from investors.
"Startups make the fundamental mistake of thinking that it's all about the data and it's all about the tech," said Donna Griffit, a marketing consultant and author of "Sticking to My Story: The Alchemy of Storytelling for Startups." The "most important aspect of their investor pitch is the story that they tell," she said.
Strip Out Jargon For Origin Storytelling
The most important tip Griffit offers for investor pitch presentations is to eliminate "jargon and tech babble."
Communicate to investors like you're having a verbal conversation. "The most engaging way to do that is through a story," she said. "So find your origin story — what made you start your startup?"
Find a simple way to explain your solution to the problem your product or service solves, Griffit said. "Also show us your product through the perspective of the user journey. If you can do these three basic things then you already will have elevated your pitch considerably."
Know Your Storytelling Pitch Is Not About You
It's vital to "think of your story through the lens of the questions that investors need answered," Griffit said. For example, "How is this solution different from other products? Why will this change the market? How will you make money? How will you scale?"
She said to always think about things from the listener's perspective. "It's one of the biggest secrets to success. Nobody cares about your product, solution or technology — unless you can first prove why they need it in their lives."
Practice Brevity for Successful Storytelling
No one will fund "technology for technology's sake," said Rachel Konrad. She's the chief brand officer for the venture capital firm, The Production Board. "If you can't explain your mission and strategy in a few simple sentences, you won't get a penny from investors," Konrad said.
Graham Ober, vice president at Revolution Ventures, advises not to rush through the presentation but do be succinct. "Don't take too long to get to your point and be sure to cover the basics," Ober said.
Ober's suggested deck structure is the overview and the hook, and then the problem and the solution. Next, address technology, market size and competition. Finally lay out your go-to-market strategies, showcase your team's accomplishments and provide projections and milestones.
Drive Urgency
Don't wait to deliver good news, Griffit said. Work in a "brag slide" up front in the pitch presentation also.
On slides and in conversation, emphasize your credibility, likability — that you're coachable and flexible, and momentum — meaning how far you've gotten so far, she said.
Up Your Elevator Pitch
Be prepared with your elevator speech, Ober said, or better yet, a two-sentence pitch that the investor can use to explain to their partners after the presentation.
Ober advises a framework identifying your target audience, the product need and the key benefit. Describe how you're different from the competition.
Highlight Your Intellectual Property Moat
Whether it's a 20-year patent, trade secrets or a platform with 100 times more users than the competition, Konrad says explain why it will be difficult if not impossible for other startups or well-funded incumbents to beat you.
Never exaggerate; you must back your claims up during the due diligence process, she adds.
Tell A Visionary Tale
Investors want to invest in a story that is larger than life, Griffit said.
"They want to know that the founder is shooting for something that is bigger than even they are capable of imagining," she said. "How big can this get? What will be future markets and future products that you'll address? Lead them on a journey that makes them so excited that they can't imagine not being part of this deal."
Being a good storyteller gives your investment pitch presentation the best chance to receive funding — and then for your business to live happily ever after.
