April 21, 2010

How to Pitch an Investor in 90 seconds

You have 90 seconds to pitch an investor about your new, incredible business idea that’s going to change the world and make millions of dollars. How do you do it? Simply break your story into five parts using this guideline of how I’d want to be pitched:

  • What is it, who’s your target and what’s the value? (20 seconds)

Get me excited. Focus on the value of your service rather than the features. Tell me quickly what it is, who your target market is, and tell me how it’s going to help them do something better, faster, or more easily. Focus on value and the void you’ll be filling.

  • Pricing model? (10 seconds)

How much does it cost and how do you plan on making money? Recurring revenue or one-time fee?

  • Why is it unique or buzzworthy? (20 seconds)

What makes your product or service unique? Why will anyone care? What are you going to do to get people talking about it?

  • Funding requirements? (15 seconds)

How much money do you need to get started and why? Very high level overview.

  • The team? (25 seconds)

Who makes up your team and how are you going to make it happen? Why should I invest in you? Why are you the best person for the job? This is the most important section so take your time and remember, investors will be investing in you and your team, not your idea.

Now, if you are reading this wondering…where should I be pitching next?  Where can I gain buzz and raise awareness?  Easy…check out is an opportunity Grasshopper is involved in that allows anyone to give us their best 90 second pitch.  Each month Grasshopper and Adam (the Host of the Web 2.0 Show) will pick the best 2 pitches and create a separate podcast episode devoted to you, your pitch, and your business.  We love helping entrepreneurs, and this is a fun way to give all of you an opportunity to hype your business.

Good luck.

Siamak Taghaddos is the Co-founder and Chief Executive Officer of Grasshopper in Needham, MA.