-How not to waste time on pitching the wrong investors? -How to deliver a message? -7 pitching rules

1. Pitching Investors Effectively
Shahar Pitaru
FoundersGuidebook.com
Copyright © 2012 Shahar Pitaru

2. Agenda
Don’t waste time on the wrong investors
How to deliver a message?
7 pitching rules
Copyright © 2012 Shahar Pitaru

3. Pitching the Wrong Investors
Copyright © 2012 Shahar Pitaru

4. It’s common knowledge that
you should…
Know Your Audience
But when pitching to investors
you should first…
Copyright © 2012 Shahar Pitaru

5. CHOOSE Your Audience
Here’s why…
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6. Secret #1
Not all investors are actively investing
Copyright © 2012 Shahar Pitaru

7. Ask Yourself #1
Do they have money?
When did they raise money last time?
> 4 Years = Not Active
How many companies have they already
invested in?
> 10 Per Partner = Not Active
Copyright © 2012 Shahar Pitaru

8. Secret #2
Investors don’t invest in what they don’t understand
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9. Ask Yourself #2
Do they understand your space?
Did they ever invest in companies in
your space?
Tip: Contact the partner that deals with
your type of companies!
Copyright © 2012 Shahar Pitaru

10. Summary #1
Find an investor who has money and
invests in your space
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11. How To Deliver A Message?
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12. What You Want…
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13. What You Usually Get
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14. The Triune Brain
Neocortex:
Analytic
Limbic:
Emotions
Reptilian:
Survival
Information
Copyright © 2012 Shahar Pitaru

15. The Algorithm
1. If it’s not dangerous,
ignore it
2. If it’s not new or
exciting, ignore it
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16. For Example…
An asset allocation service
(that aims not to suck)
Copyright © 2012 Plantly, LLC

17. To win here
If new,
Summarize
Target here and forget
the details
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18. Example from SeedCamp TLV, March 2012
Copyright © 2012 BukIt, LLC

19. Example from SeedCamp TLV, March 2012
Copyright © 2012 BukIt, LLC

20. Example from SeedCamp TLV, March 2012
This is what the audience felt after seeing
these numbers, and…
SeedCamp decided to invest in BukIt
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21. Summary #2
• You can’t reach the analytical brain without
passing through the crocodile brain
• Start with an intriguing sentence
• No abstract concepts
• Only concrete facts
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22. 7 Pitching Rules
Copyright © 2012 Shahar Pitaru

23. #1: Create Curiosity
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24. #2: Detailed Slides Are Boring
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25. #3: Demo Your Product ASAP
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26. #4: Only 20 Minutes!
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27. Otherwise…
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28. #5: Let the investor ask for
the details
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29. #6: Practice On Your
Dad’s Rich Friend
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30. Only Then Pitch The Big Boys
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31. #7: Pitch Simultaneously
To Create A Market
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32. Conclusions
• Don’t waste time on the wrong investors
• Pitch to the crocodile brain
• Don’t use slides! Demo your product!
Copyright © 2012 Shahar Pitaru

33. What To Pitch?
• Introductory email:
http://venturehacks.com/articles/elevato
r-pitch
• Elevator pitch:
http://vimeo.com/16447520
• Investment deck:
http://venturehacks.com/articles/deck
Copyright © 2012 Shahar Pitaru

34. Recommended Books
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35. Shahar Pitaru
@pitarus
FoundersGuidebook.com
Copyright © 2012 Shahar Pitaru