Monday, April 27, 2009

The General Pitch

From my chat with an individual seasoned in entrepreneurship today, I realized that I have been giving "The General Pitch" for the past year. There are two big flaws with what I have been doing.

1) The General Pitch: here's what investors hear all the time.
  • Our potential market size is above $10 billion dollars;
  • We are curing a BURNING PAIN for our target segment;
  • Our adoption rate is going to be AMAZING;
  • Our financials display a hockey stick ramp up;
  • We'll reach break-even within 2 years;
  • We're going to exit by acquisition.
The recommendation I got today is to send the key reading material to the investor prior to the in-person meeting. You reserve the face to face time to resolve the nitty-gritty details, which is where the investors reveal their true objections of why they're reluctant to write you a check.

2) Not hiring an actor.

Number 2 is really true. I should hire someone that looks like a banker to do my pitch for me. It's a credibility thing. Investors can deny this all they want, but once they see me get up to do a presentation, they have already imprinted in their head that I'm young and enthusiastic, which equates to inexperience in their books.

I spend the next 20 minutes they've allotted for my presentation fighting this stereotype. It doesn't help that I spend these precious minutes giving The General Pitch.

This is why I should hire an actor to do my pitch - it has worked before from what I've heard - any takers for this deal? :)

Well, live and learn. At least I'm glad that I came to this realization.

1 comment:

vincentkcng said...

Hey I have to say, I've been reading bits and pieces of your blog from the past. I think it's fantastic. As for the actor issue, give me a description of the type of actor and I'll put out the word. My personal suggestion, someoene with silver hair, and is caucasian.
By the way I looked on your website and saw that PeerFX has a stand up banner. Why don't you bring it to the May 9th presentation, and I'll put it in the background while doing my workshop. There should be a minimum of 80 people there. Also I have a professional photographer coming to do shots for Free (and yes, free WITHOUT some weird floating logo or header on top of the picture), if you and Julien need some shots done for free let me know. And if you're wondering why I'm doing all this ...i'm kind of like Raymond. I'm a sucker for entrepreneurs and startups. You have my e-mail Florence...let me know if you'd be interested.