- Poor explanation of the problem. Often, the pitch focuses on a great new solution and its remarkable features. If the problem doesn’t exist, people won’t need those lovely features. The problem can be a problem that users do not yet know that they have. If it is, you are ahead of the game and likely onto a great idea. However, that problem needs to be researched, measured, and realistic.
- Ignorance about your competition. There is no excuse for not doing solid market research before going into your field. What differentiates you? Why are people going to choose your solution over another solution?
- The investment plan isn’t thought out. You should be able to know what investor money is going to do for the company. Is the money going to go to hiring a developer, or is it going to go to legal fees for a copyright battle you are in. That’s a huge difference, and your investors have the right to know right away.
I’ve written before on impressing investors, and one of the key parts of impressing investors is making that first impression. It needs to be quick, be simple, and boil down to the meat of the problems – What’s your product? What problem does it solve? How are you going to make money off of it? If you can’t detail those problems, you are going to lose their attention fast, and for good reason. These are the biggest things that affect them. When I do see this initial pitch, there are also the easiest ways to mess it up. Here are the 3 big ones I see: