Communication – where the recipient understands what the sender said.
There can be many more interpretations of the same, but in the truest form it needs to be simple, uncomplicated.
And it holds more true, when you are sharing your ideas and thoughts with potential investors, seeking capital to invest in your entity.
Can there be a structured form – where this ( communication) can be a science and not an art!
Over the years, it has been noticed that – act of pitching to raise capital is an art. Putting forth your idea in a manner the potential investors would commit and want to invest in the opportunity upfront is uncommon! And those who have been able to attract capital early – has got this right – communication.
Can this art be a science?
Why not?
What are the ingredients of a good pitch?
- what is the problem statement ?
- the solution proposed ?
- the moat , the solution provides
- the capital required
- the monetization
- the cash flow
To investors – its about ‘ show me the money ‘ ( what will be the multiples on the investment )
To founders / promoters ( how soon can I get the capital at optimum valuation )
If the pitch is so elementary ( ? ) why is it so difficult !
One pitches typically, based on one’s thought process and what one is seeking for – stating all the strengths along with the technicalities with the investor(s).
Well, this works , when the investor is an institution or an individual from similar industry / sector!
The basic rule – irrespective of the audience – if one can explain the product/service as one would to a 12 year old, more often than not , the message gets delivered!!!
But then , today there is one more challenge. With entrepreneurship gaining traction & respectability, there are now more pitches .
This also means that there are more potential investors either through accelators, SPV’s or Aif’s . Also Government grants are in place.
So what it means!
Competition…which means you get more opportunities to present your case … and that you have more peers to deal with !!!
And just like in sports , as in cricket- you need to have a elevator pitch ( 30 seconds) , a 3 minute presentation , as also a 10 minute one . And also a 30 minute or a few hours long …
Each of it is a thread !!!
Welcome !!!
Author,
Brijesh Damodaran
