As a leader in your startup, you know how vital a good pitch is. You want it to be attractive, engaging, and persuade investors to learn more about you.
It’s your elevator speech or presentation that could make or break the future of your company. While it may seem like a big deal, it’s also an exciting time to share the opportunity you have to make a difference in your industry. It’s the seed that will one day grow to something remarkable.
Many components go into presenting your startup. You might have already created a pitch deck, designed to cover all the important aspects of your business and what investors might expect from it. Another effective way to connect with investors is a video pitch.
A video pitch is a great way to share your startup because it puts you in front of investors from wherever you are. It’s also an organized presentation of yourself, giving you the ability to make the video exactly how you want it in a controlled environment.
Up to 90% of communication is through your body language, which cannot translate on paper as effectively as in person. It's an opportunity to increase confidence in potential investors. Above all us, video pitches are very effective.
"…you need to engage us. It’s your job to make us listen. We want to learn from you and be inspired by your pitch. Capture our attention, stand out, be different!" – Robert Herjavec, Investor on Shark Tank
Videos are extremely engaging and we can see that through traditional marketing, especially when videos get 66% more qualified leads for consumers. These results show that videos elicit more action and engagement from the viewer. When investors see videos, they aren't reading static text, you are inviting them to a story and opportunity.
The key is to keep it simple, concise, professional, and interesting. Below are some ways you can create a stellar video pitch:
Create the Right Setup
Your first impression means everything! When it comes to videos, it’s usually the way you organise your presentation and the equipment you use. But don’t worry, you don’t need an expensive setup or wait days to get everything you need—you can probably start right after you read this article.
Decide on the camera you want to use. If you have a quality camera that records HD or clear video, use it. If not, one of the later iPhone or smartphone models you have will do great as well. These days, smartphones are investing more into their cameras with every model, creating great resources for creators.
Try not to film with someone holding the camera without support or through a selfie. A wobbly frame can be distracting. You can find a spot in your office or home that could hold it in place or use a tripod. Amazon has great options for your smartphone.
Check your audio and make sure the volume is good and that the quality is exceptional. If there are echoes, consider finding a place with carpet or a smaller area that will withstand noise bouncing off the walls.
Once you have the foundational equipment, pay attention to your surroundings. How is your background? Is it busy with pictures, posters, stacked books, or other distractions? It’s best to use a blank wall or even a digital background if there are no other options.
Lastly, make sure to wear something professional, groom and care for yourself, and hold a good posture for the camera. Write a transcript that will help you say the right thing with confidence. Through a tablet or screen behind the camera, you can bounce off of it while maintaining eye contact with the lens.
Tell a Story to Your Investors
In his bestselling book called Building a Storybrand, Donald Miller writes about how powerful stories are when we market a business. He develops the framework for every good story, which includes the customer as the hero of the story and the business as the guide to help them find the solution to their problem. He argues that when a brand puts the customer in a story, they will see better results and grow their sales.
When you make an investor video pitch, business leaders are going to be looking for that story. They want to imagine a future customer, their problem, and how your startup leads them to a solution.
The best way to tell a story is by reflecting on your story first. Odds are, you faced a problem yourself and wanted to find a solution. Once you did, you decided to share it with your targeted audience. In that story, there will be a struggle, desire for change, failure, and success.
You can use that to develop a brand story that can place customers in those shoes. Once investors identify it, they will connect with the story and imagine it in stores or on commercials, appealing to customers.
The story you tell will ultimately lead to a WHY, recently made famous by bestselling author Simon Sinek. In short, he says that people don't buy WHAT you sell, they buy WHY.
When someone buys an Apple product, they aren't buying a cool piece of hardware and software. They are buying the brand that promises innovation and to break and shatter boundaries. It represents something.
Your story will give your investors a perspective of how you developed your product and it will allow them to see the future and how you will attract the right audience.
- Define your story of origin
- Tell that story your investors
- Then tell your customers’ story and how your product fits in it
Show Too, Don’t Just Tell
“Don't tell me the moon is shining; show me the glint of light on broken glass.” - Anton Chekhov
Investors will be eager to hear what you have to say. In your video pitch, you’ll be able to communicate the value you see in your startup but words can only go so far.
It’s one thing to say it. It’s another to experience it.
We want to show our product or service for a couple of reasons. The first is to prove to investors that it works or that its quality backs up our claims. The other is for investors to get a true, intimate feel for what it is. It's what customers will experience and it’s the core of the startup.
If it is software, you can show a quick sneak peek of the platform in a few short seconds. This will give them a sense of the UI/UX and a general understanding of its functionality. If it is a product, test it on screen; a service, through a mockup example or a short clip.
Use this time to show the value of your startup.
State Your Value Proposition to Investors
What makes you remarkable? Seth Godin describes this in a scene from his book, The Purple Cow. Imagine you are leaving the city on a road trip with your family and you notice cows in the countryside.
One of your kids points to them and everyone enjoys it. But after 40 minutes of seeing the same thing, it gets tiring. It's old. Then, all of a sudden, your child points to the back and says, "Is that a purple cow?".
Now that’s strange. You swerve to the side of the highway. You take pictures. You wonder why it’s purple and if it makes purple milk. It has your full attention.
It’s the same for a startup. There is so much noise, so many other products, all fighting for the same attention from the same customers—and many of the same investors. The only way we can get this attention is by being remarkable. We have to become the purple cow. What makes us so different, so crazy, that investors and customers have no choice but to stop and listen to you?
In your video pitch, state some of the ways that make your startup unique and valuable.
What makes your product or service special? Also, include things about yourself. Have you had experience starting businesses before? Was it a success or a failure? What did you learn and how will it help with this startup? How is your team? Do you work together and do you complement each other well? Do you have numbers and information to support your viability?
These are all valuable points that make you stand out to investors.
Re-watch and Edit Your Video Pitch
The first version is never perfect.
Watch your video and assess if anything should be changed. You might have to re-record or make minor edits.
Don’t be afraid to snip the video and make small edits but verify that it makes the video better and it does not become distracting. Stay away from most special effects, background music, and anything that takes away from your true purpose: a video pitch to show your value and opportunity to investors.
You can also send the video to a few friends and your team to get some feedback. Once you are happy with your video pitch, it’s time to upload!
Takeaway Guide for Your Video Pitch
- Set Up Your Equipment, Your Outfit, Transcript, and Environment
- Tell a Story to Your Investors About Your Brand
- Show the Value of Your Startup’s Product/Service
- State Your Value Proposition and Why You Are Remarkable
- Refine Your Video
Video pitch ready? Apply for free for funding with Pitchdrive.
Do you already have a pitch video that will grab the investors’ attention? Or did you follow the steps above and feel ready for the next step: seed funding? Why not give your project a chance and sign up for free with Pitchdrive? We will analyse and qualify your application with your pitch deck and the video and see if you’re ready for funding. Try it today! Click here to get started.