Elevating your Pitch
© 2001 Luis Villalobos (Provided through the courtesy of Luis Villalobos and Tech Coast Angels)

Angels and VCs will -- or will not -- invest in you based on your elevator pitch. Nothing is more important. Investors fund fewer than 1% of ventures that approach them. If you fail to engage investors immediately, they may not be around for the rest -- they tune out your presentation or relegate your plan to a 'later' pile that never gets read.

1. Grab them or lose them. Your may have a dynamite team, unassailable market niche, revolutionary product, disruptive technology. But investors may not hear about them, unless you lead with the 4-6 points that differentiate your venture and make it an attractive investment. The elevator pitch should be the first slide in your Powerpoint, and the lead paragraph in your executive summary.
2. Authors of best-selling novels understand. Of the year or more that authors devote to writing best-sellers, they may spend 10% or more on the first sentence, and another 10% or more on the balance of the first paragraph. Why? Because people go to the best-seller rack, take down a book, read the first sentence, and if that grabs them, read the rest of the paragraph, and if that grabs them they usually buy; but if either fails to engage them, the turn to the next book.
3. In English for laypersons. Unless your audience can explain your venture, you have lost them. How often do you think investors tells their associates or spouses: -- I saw this great venture today, but I can't tell you what they do.
4. Exclude fluff and hype. Replace all superlatives ('unique', 'revolutionary', 'best', 'fastest', etc) with specifics; e.g., "priced 40% below market leader" is substantive, where "lowest cost" tells me little.
5. Relevance. Avoid the unimportant; e.g., founded in May, offices in Los Angeles, Delaware C-Corporation. Make sure it's not only unique, but relevant; that the names of all six founders start with 'J' may be unique, but hardly relevant.
6. There is no pat answer. Often I am asked "What should be included in the elevator pitch?" as if there were a standard set of points. Focus on what differentiates your venture and makes it an attractive investment. Below is a list of just a few of the items to consider:
   

   RESULTS (actual)	TEAM	BARRIERS TO ENTRY & NICHE TO DOMINATE
   Profits Revenues Sales Bookings Customers Beta site(s) Proven concept Key contracts Awards	Spin-out from leader Track record Domain expertise Tech wizard Marketing guru Sales star Board Advisors Degrees	Blocking patent Picket fence patents Exclusive agreements Key customer(s) Vanity number Lead time Regulatory permits Trade secrets