Creating a successful elevator pitch can be overwhelming to anyone who’s just gotten started with their business. An elevator pitch is essential because it serves as a key document to explain your business ideas to angel investors and VCs in the least possible time.
It is often called an elevator pitch because the startup founder has to explain everything to potential investors within 30 to 60 seconds—the time it takes to use an elevator to reach the bottom from the top floor.
Angel investors receive several startup pitches per day, but they don’t have time to go through them during the initial screening phase. At such a time, an elevator pitch plays a key role in letting an investor know about a particular startup. Through an elevator pitch, the startup owner can quickly explain their startup ideas to potential investors concisely while bringing out key details.
But the problem is 9 out of 10 startup founders will end up doing it in the wrong way!
That’s why we’ve come out with this article to help you understand everything related to elevator pitches from scratch.
An Elevator Pitch: Meaning and Significance
An elevator pitch refers to a short explanation of what your startup does, how it differs from the rest, and which problems does it address?
You can also call it a brief introduction to your startup. It should be small, concise, and intriguing. Don’t make your elevator pitch too lengthy and detailed, otherwise, investors might lose interest in it.
The primary purpose of an elevator pitch is to grab the attention of the investors at first glance, besides creating interest in their minds about your startup.
Once an investor gets hooked on your elevator pitch, they will obviously want to meet with you for further discussion.
When it comes to creating an elevator pitch, conveying more information using fewer words is the need of the hour.
If you’re wondering how to create a killer elevator pitch, this article can help.
Work with Fewer Words
Many new startup founders make the big mistake of adding too much information to their elevator pitches.
By doing so, they not only make their elevator pitches lengthy and a bit difficult to understand, but also lose out on opportunities to impress angels.
An elevator pitch has to grab the attention of angel investors within a fraction of a second.
Try to deliver a clear-cut message about your startup—what it does and how it can address the pain points of the customers—the more effectively you communicate, the better will be the response from investors and VCs (Venture Capitalists).
Address the Pain Points of Customers
When you’re presenting your elevator pitch, your investors do not just want to know what you are doing but they also want to understand how you’re addressing the pain points of customers.
You need to describe how you are looking at it along with their possible solutions. You can show testimonials, market research studies, and other data to prove your point.
Focus on Relationship Building
An elevator pitch should help you build relationships with your potential investors, which can go a long way in scaling up your business. It should address key points but need not dive deep into them.
Try to present your pitch with the necessary bullet points to help your potential investors have a clear-cut idea about your startup. Be pragmatic in your approach and don’t make it too promotional or sales-oriented.
Start with a Hook
Your pitch should start with a strong hook to captivate the attention of investors and the target audience. The hook should be blunt, and up to the point. It should make investors wonder what’s going to come next.
For example, if you’re a startup founder and working on developing a SaaS product relating to ed-tech, you need to start your pitch with a strong hook.
In this case, you can cite how so many kids miss out on their daily classes because of illness every year. Then, you can explain how your ed-tech product can help them attend virtual classes while sitting at home and not missing out on any class lectures.
Simplicity is the Key
Investors always prefer a simple elevator pitch. Keep it completely in active voice and direct speech. Your pitch shouldn’t contain any highfalutin words that are difficult to understand.
Every word you mention in the elevator pitch has a purpose to serve. Never deviate from the core issues for which you’re pitching your startup for funding. Wherever possible, cite case studies or relevant data to prove your point.
Briefly Mention About Your Team
Your investors would love to know about your team and who you’re working with. Never hesitate to inform them about your firm and also justify why you feel that your team is capable of accomplishing its startup goal.
Briefly describe the skills and qualifications of the key personnel involved in your project along with other relevant information, if any.
Specify Your Target Market
A pitching document or presentation is completely useless if it fails to specify the target market that the startup wants to address. Investors will be curious to know about your target market. So, make sure you have up-to-date information about TAM, SOM, and SAM before you start explaining your business goal to investors.
In a nutshell, your elevator pitch should contain all the relevant points relating to your startup in the least possible words. With practice and mentorship, you can master the art of crafting a compelling elevator pitch, which can intrigue any angel investors or VCs alike.
If you’re a startup and looking for any assistance in creating an elevator pitch or want to master the art of pitching, get in touch with us at StartupSteroid.