I'm frequently asked "What do investors want to hear to make them believe my company's worth the risk?" In my experience, you got to convey the following:
1. Sell your TEAM. Who are the key members? Have they done startups before? What are their credentials and accomplishments? What is their functional expertise? What is their prime responsibility within the venture for which you seek funding?
2. Sell the opportunity your MARKET presents. State the problem (need) that exists in your space. Quantify it as the context for your product. In other words, describe your product in terms of the marketplace for it.
3. Sell your SOLUTION. Exactly how does your product, and only your product, solve the problem as specifically described by the people for whom it's intended.
4. Sell your BUSINESS MODEL. Detail your beliefs and assumptions as to why your rationale is valid. Be candid: show how you've thought it through, even revealing where your weak spots might be.
5. Ask for the MONEY. Specify how much it's going to take to deliver what you believe will best exploit the market opportunity you've identified. Show how everyone will enjoy a robust return on investment. your product, fill the need that exists as you've described it in #2 above.
"Thank-you" to Rob Bordoli, formerly with Mobius Venture Capital in Palo Alto, California.
Tomorrow: A template for an irresistible pitch.
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