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Communicating the Opportunity

Patterns of Entrepreneurship Management 5th Edition, Chapter 10

Chapter 10

Attracting Investors

Teaser and Elevator Pitch

The Presentation

After the Presentation

Presentation Outline

• Locating Investors

• Grabbing Investors attention with a

“Teaser”

• From Elevator Pitch to Presentation

• Making a Video Pitch

• After the Presentation

Chapter 10

Attracting Investors

Teaser and Elevator/

Video Pitches

The Presentation

After the Presentation

Why Attract Investors?

• No idea, however good it is, will attract

resources to help a company grow unless the

entrepreneur can communicate the opportunity

clearly to potential stakeholders whether they

be investors, bank loan officers, corporate

partners or even key employees.

Chapter 10

Attracting Investors

Teaser and Elevator/

Video Pitches

The Presentation

After the Presentation

Attracting Investors

• Customize all communications to your target

audience—i.e., are you going to pitch to a bank the

same way you are going to pitch to a VC?

• Investor commitments do not come quickly—allow

for an exploratory period

• First communiqué should be an executive summary or

teaser that grabs attention

• Have the verbal equivalent of an executive

summary—the elevator pitch—ready. Must be a crisp

message that can be conveyed in 2 minutes

• If you’ve made an impact via the steps above, you will

be invited to give an investors’ presentation

Chapter 10

Attracting Investors

Teaser and Elevator/

Video Pitches

The Presentation

After the Presentation

Locating Investors

• Investors are busy people, only contact those

who are likely to be interested in the

opportunity

• Look within the industry in which the business

is focused

• Speak with other entrepreneurs in similar

business fields who have successfully attracted

investment

• Leverage the value of the internet – angel web-

sites, crowd-funding (See Chapter 5)

• Network, network, and network!

Chapter 10

Attracting Investors

Teaser and Elevator/

Video Pitches

The Presentation

After the Presentation

The Importance of finding the Right Investors - 1

• Investors aren’t just a source of money

• Investors add value by:

– Helping to identify key management team

members

– Providing key contacts and network access

– Serving as a mentors, confidants, and a

sounding board

– Helping to establish relationships with key

customers, suppliers, and corporate partners

Chapter 10

Attracting Investors

Teaser and Elevator/

Video Pitches

The Presentation

After the Presentation

The Importance of finding the Right Investors - 2

• “Arms-length” investors are passive

investors who want little or no

involvement in the business

• Though this sounds attractive in such a

way that they won’t interfere, this is

actually unadvisable

• Always opt for “Smart-money”

Chapter 10

Attracting Investors

Teaser and Elevator/

Video Pitches

The Presentation

After the Presentation

Tips on Finding the Right Investors

• Attend local entrepreneurs networking

functions

• Keep in mind the criteria by which investors

filter:

– Stage of Company

– Domain or field

– Size of Investment

– Location

– Stage of fund

• Network—Investors MUCH more likely to

review opportunities that are referred to them

Chapter 10

Attracting Investors

Teaser and Elevator/

Video Pitches

The Presentation

After the Presentation

Preparing a Teaser

• A teaser is the bait—it must be

impeccable in its appearance, short and

to the point, clear, and elegant

• Be sure to describe the opportunity and

the benefit to the potential investor

• It takes a lot of time to prepare an

effective teaser

• Draft it, go back to it, and have a trusted

mentor check it.

Chapter 10

Attracting Investors

Teaser and Elevator/

Video Pitches

The Presentation

After the Presentation

The Elevator Pitch - 1

• The elevator pitch is essentially a verbal

version of the teaser

• Imagine you have two minutes in the

elevator with your ideal target investor

• Don’t underestimate the effort needed to

make this pitch short—this is extremely

difficult and must be rehearsed time and

time again.

Chapter 10

Attracting Investors

Teaser and Elevator/

Video Pitches

The Presentation

After the Presentation

The Elevator Pitch - 2

• Speak clearly, do not mumble, and do not rush

• Put yourself in the place of your audience – don’t tell

them what you want to say, but what they want to

hear

• Modulate your voice

• Get the audience involved and interested early

• Be enthusiastic

• Do NOT get into lots of detail

• Maintain positive body language

• Do not be overanxious or overact

• Finish on a high note; close with focus on next actions

Chapter 10

Attracting Investors

Teaser and Elevator/

Video Pitches

The Presentation

After the Presentation

The Video Pitch - 1

• Increasingly, short video clips are being

used to promote start-ups.

• Many examples can be found on the

internet and on crowd-funding sites.

• Smart-phone cameras and freely

available video-editing software has

reduced the cost of production.

Chapter 10

Attracting Investors

Teaser and Elevator/

Video Pitches

The Presentation

After the Presentation

The Video Pitch - 2

• Choose a simple font and only use one

• Don’t use fancy cuts – keep it simple

• Write a story board to make sure that

there is clean flow between sequences

• Keep scripts short and to the point

• Do not exceed three minutes

• Don’t use canned free music

Chapter 10

Attracting Investors

Teaser and Elevator/

Video Pitches

The Presentation

After the Presentation

Investors’ Presentation

• An investors’ presentation is the next step after a

potential investor has taken the “bait”

• Fill in details that the teaser left out. Should be no