9 key things to mention when pitching your software startup
1. Show early success
Investors don’t want to invest in your idea. Many ideas sound good on paper but fail when put in front of customers.
- Emerson Spartz, Spartz
2. Identify your KPI and articulate it well
It’s crucial to have a core KPI to benchmark your progress, and it’s typically ideal that such a metric be a revenue lever.
- Derek Shanahan, Playerize
3. Answer “Why now?”
What is unique to your business that makes this the correct time to launch? Typically, this is a technology innovation, a shift in sentiment or a market landscape change.
- Adam Lieb, Duxter
4. Understand your sales funnel
Not only does a sales funnel enable you to better model your financial projections and sales timing, but it will also spark conversations around how to increase conversions at each stage and where the investor can add value throughout the chain.
- Doreen Bloch, Poshly Inc.
5. Provide customer acquisition costs
Ideally, you can provide this cost per marketing channel. For example, you could say, “It costs us $5 per customer through ads, but $2 per customer through affiliate networks.” Craft a story around the core of your costs and how you will lower them. Investors want to know that their money is going toward a scalable business!
- Aaron Schwartz, Modify Watches
6. Prove your team can execute
You HAVE to prove to them that you are experienced and capable — and that you will be able to do everything in your deck.
- Trace Cohen, Launch.it
7. Offer key financial metrics
Include a forecast that takes into account your revenue projections for the next five years, your gross margins, the ROI for your potential investor and your anticipated exit strategy.
- David Ehrenberg, Early Growth Financial Services
8. Find a real audience
Exactly who will use your software, and why? If you can be realistic about your audience and its size, you can be flexible about what you actually wind up building and how you price it. But if you can’t find an audience, you’re doomed.
- Thursday Bram, Hyper Modern Consulting
9. Craft a story
Get to know a little about the investor before crafting your story, and gear it toward something she’ll find interesting. It could be anything from how you came up with the idea to something even more creative (“Envision a world where…”).
- Andrew Schrage, Money Crashers Personal Finance