Do you have a new product to pitch? Would you like to know what investors look for before investing? If yes, this article is for you. Below, you will find best practices for pitching to investors as shared at our recent Meetup Launch Your Product and Pitch to Investors. Whether you are a beginner or a seasoned pro, you can refresh your presentation skill and strategy with the tips below.
Tip # 1 Evaluate Your Product Market Fit
According to Lindenbaum, “It is important to differentiate between Product & Market Fit and Problem & Solution Fit when measuring the market opportunity. More specifically, when gauging customer's desire, companies need to be sure they are measuring desire for the product or service itself, and not just for a solution." In order to evaluate the current product/market fit, you need to understand your customer's current need.
Tip # 2 Know Your Core Story
At the end of the day, you have to give a presentation even if the world is melting down around you. Technical challenges with your product or presentation happen to best of us. Be able to draw your presentation cards and play them even if your presentation isn’t going as planned. Your core story elements: What it is, what is does, what problem does it solve, your credibility, what is your competition and differentiate yourself from them. When communicating your idea, product or service focus on one significant value proposition.
Tip # 3 Test Product in Use Cases Beforehand
Testing your product in a variety of use cases is important to showing your product working a variety of environments. The best way to reduce any anxiety you have about live prototyping your product in front of a crowd is real world testing.“Real world testing is different than lab testing,” says Kumar. Sripadam’s main point, “make sure the technology works before you share it”, seems like a no-brainer, but this blindsides more people than you would expect.
Tip # 4 Keep A Handle on Marketing
Retailers are watching crowdfunding platforms, and looking for cool products. Gary Jinks, Managing Director of South Valley Angels sees value in marketing through crowdfunding channels. Why? Last year South Valley Angels helped a company crowdfund, and Best Buy contacted them within a week.
According to Grant Bell, Director of Design at Focus Product Design, people underestimate the power of crowdfunding. “When you go to trade shows, or to cold call merchants, you’re much more likely to be successful if you have proven sales. Crowdfunding provides an evaluation you can talk about.” The insight gained from crowdfunding reveals whether or not there is a market for your product idea before you move forward in manufacturing.
How does crowdfunding de-risk your product? Click here to learn more.
Tip # 5 Explain Your Understanding of Manufacturing
“What’s really important in your presentation on hardware products is your transition to manufacturing,” says Jinks. We want to know what this journey looks like, and if you have been through manufacturing before. If you have experience in hardware or manufacturing, mention that, because it’s the investor’s fear that if you haven’t already been down that road, you’re going to hit a lot of bumps. If you don’t have the experience, team up with someone with a manufacturing background, or a firm which specializes in bringing products through design for manufacturing, tooling and manufacturing.
What is Design for Manufacturing? Click here to learn more: http://www.focuspdm.com/blog/launch-your-product-and-pitch-investors
Tip # 6 Demo A Tangible Product
Bringing a physical prototype or product to your pitch gives you a huge advantage in explaining your product to marketers and investors, and connecting to the audience during your presentation. It’s much easier to understand, and get behind a product you can see working for yourself. Speaking with regards to South Valley Angels, Jinks said that “my group pulls the trigger on tangible products we can touch.”
What type of prototype do you need? Click to learn more.
Tip # 7 Define Your Value Differentiators
When explaining your product to any audience, tell them why they should buy your product above any other. Is it price, technology or another factor? “In a competitive environment,” says Jinks, “it’s a good idea to get a sense of where you fit in the sand box, and what makes you different.”
Pitches included: Icon Smartech Thermostat +, Treasure Box.
To read more: http://www.focuspdm.com/blog/launch-your-product-and-pitch-investors