How to prepare for a battle of startups? Recommendations for a good pitch
Editor’s Note: The writer of this Column is Gary Urteaga, co-founder of CINEPAPAYA , startup Intel Challenge Latin America finalist, accelerated by Wayra Peru and currently in the Startup Chile program. Also won 2nd place in the Best of Accelerators Startup TNWS Battle in Brazil, among more than 115 projects submitted to the Startups accelerator improvements in Latin America.
For a Startup to grow, it requires a good synergy between entrepreneurs, investors, technicians, managers, mentors, and others. One of the most important means of communication between these actors is the “pitch”. Your goal is to communicate the essence of a business project in the most clear, complete and concise.
A pitch can be from less than one minute to 20 minutes. The “elevator pitch” is the shorter version and that we use as Papaya in The Next Web Startup Battle , where we took second place. The concept was created with the assumption of sharing the fate of an investor enters the elevator with one, and have only a few seconds to explain a business opportunity to spark their interest quickly before you get off the elevator.
In the ecosystem of startups, has reached a standard of the main topics to be covered during a pitch and presentation:
- The first idea is to convey the “concept pitch” to clearly explain in one sentence of the project in question. It is important to use to transmit at least the name of the company, the business, the business model, the sales channel and the target market.
- Describe the problem in the market that has been detected and studied.
- Describe the proposed solution: If possible you can make a product demonstration or solution . It is recommended that the demo is a video recorded for risking no technical problems facing investors.
- Describe the market size and growth potential of the business. If possible include the data sources.
- It is very important to specify explicitly what is the plan for the project to generate income and sales for the company, detailing the source of income: this is your business model.
- Describe the recipe secret, proprietary technology, assets and project awards: what made you stand out?
- Describe the industry, but particularly to list the major competitors in the market, to show that are known and have been studied
- Describe a plan or marketing strategy to convey a clear confidence that the project will not only build a product or service class, but also are worrying about how to distribute it and sell it in the market, particularly if you have the ability to scalability to other markets.
- Describe the strengths of the team behind the project. It is important to describe the team who bring a minimum of these three capacities: Capacity Development Technical Solutions, Entrepreneurship to found the company and make it grow, Capacity Sales, who will make the company achieve excellent selling. These capabilities also strengthened by angel investors or project advisors
- Finally it should be a clear proposal to end the presentation. What is the goal you want to achieve? To search for investment, you must specify how much money is being sought, in which to spend and a reference to the estimated projected sales as a result of the investment. This allows the investor to have a baseline of economic potential and profitability.
Each slide presentation accompanying the pitch, should only contain a few key words or images that summarize the ideas described.
Be prepared, perhaps, is the most important aspect of the pitch. Nonverbal communication becomes a key element. You have to project an attitude of trust and confidence on what is said, and that can only be achieved by preparing and practicing. It’s almost like a sport.
I think the rules are not written. For some entrepreneurs may be other highlights of the 10 previously described. Some founders are more technical or shy and feel more comfortable in presenting the technical part of the project, while others are individuals recognized for their careers, very charismatic or even famous, that by its mere presence and convey confidence and support, and arouse the interest an investor with greater ease.
I recommend that all the founding team working on developing the proposed previous year and prepare a full presentation with all 10 themes. Then you can add, remove, change, deepen and swap the order of topics according to the needs. Even during the same presentation can be making changes on the fly, in response to real-time reaction of the audience.
Finally I suggest that if the principal founder not comfortable showing in public or if not done correctly, it is another team member who is present, or to make a presentation in tandem, in order to convey the message more clearly and enthusiasm. And it’s always better to have two people in front during the time for questions and answers, particularly to complete some answers or important points, which have been passed to the other.Tags: Column, companies, Entrepreneurship, Investment, investors, start-up