Research your audience
Before you present your pitch to the investors, research them. You can find more about them through sites like AngelList, Flashfunders, and SeedInvest.
Learn more about them and see what approach seems best. For starters, try to find answers to these questions.
Do they know your industry?
What is their personality like? Loud and volatile or quiet and careful?
Do they have any other investment in your industry? (because if they do, you can be seen as a competition)
Are they a new or seasoned investor?
Are they an individual investor or do they belong to an angel investor network?
What companies did they start from or come from before they became an investor?
What would they like to know about your idea?
Organize your thoughts
Before you can pitch your idea to a group of people, you need to make sure you are clear on what you are going to be presenting to them. Write down your idea and how you are going to explain it. If you can, make an outline of how you plan to present your idea to your group. Practice your presentation so that you can fix any awkward kinks that you may find in the pitch.
Tell an engaging story
The art of storytelling is an important skill to learn. It is easier to sell an idea when the audience is engrossed in your words. If you have 5 to 10 minutes to pitch to investors, use the technique of storytelling.
Present a protagonist and an antagonist. If it's your idea, you should be the protagonist and the main pain point of your product’s consumers is the antagonist. Present the story where your product saves your customers at the end.
For example, Pepsi sells its product by selling 'happiness.' At the end of the day, you drink Pepsi and you are forgetting 'sadness' at least for a while.
Similarly, Headspace sells their 'meditation app' by stating to be 10% less sad. Who does not want to be less sad than they are?
People will spend money to be happy or to see the time, but you have to show them by telling a story.
Dress for Sucess
Dress for the type of job you want, not for the job you have. You do not need to get out of your comfort zone, but while pitching the idea to the investor, you should be formally dressed in clean clothes. It gives an overall presentable look. There are various types of dress codes depending on your industry. Do your research and dress accordingly.
Nail your elevator speech
An elevator speech is as short as 30 seconds. It is called an elevator speech because when you are in an elevator with an investor, 30 seconds is the amount of time you have to start the conversation and impress the investors with your idea.
In these 30 secs, you need to tell every important aspect of your company/idea. The goal is to get the investor interested enough to ask you further questions. Your elevator speech should cover three main parts:
What you do - Talk about your industry and the type of product.
Problems and Solutions - What pain points do most customers find in general and how your product solves that.
Why you are different from your competitors - Tell them about your strengths and what sets you apart from others.
Have a documented succession plan
A good story is for emotional attachment. You need it to get investors interested in your idea. Once that step is completed, you have to pursue the logical part of their brain. Your startup should have a brilliant business plan and succession plan in place. It shows that you are aware and prepared for the problems you will be facing in the future. It mitigates the risk factor of investing in your company.
A succession plan is to let the investors know who will replace you in terms of your absence. It shows you are serious about the growth and future of the company.
