The elevator pitch should be short, simple and memorable, ‘what’, ‘how’ and ‘why’ should be answered. “And remember to keep it free of jargon too”, says McClure. “So don’t be using technical context, or industry-specific context unless you know that investor has that background”.
McClure also noted that ‘X for Y’ is a good approach for the elevator pitch, as long as they are pretty similar. “So for Slideshare, it might be ‘we’re the YouTube for PowerPoint presentations. Both of these are well known, so that’s a reasonable claim. But if the points of reference are too obscure, they might not get it”.
Think problems first, then solutions
“I’ve shared with you a problem, I’ve taken you through an emotional experience, perhaps even one you know personally”, he continues. “So you have all these ideas running around your head, and I haven’t even told you about the solution yet. But I probably have your attention, and we now have a shared emotional context”.
Solution: Sex, money or power?
Great products and companies do 1 of 3 things: Get you laid (Sex), get you paid (Money), get you made (Power).
With that in mind, all good pitches should outline how it makes customers happy, how it’s better and different to existing products/services out there. And if it isn’t different, then change the context so that it is different to everything else.
What’s your big unfair advantage?
Another micsconeption is that VCs like to take risks. That really isn’t true. VCs like to not take risks and bet on sure things. Your market lead could be based on your team, number of customers, revenue or intellectual property or patents. Your job during the pitch is to say what your biggest assets are, and emphasize what your advantages are over others in your market.
Competition: Why you’re better or different
Investors want to know what else is out there and how what you’re doing is better than what’s already out there.
Marketing plan: Customers and distribution
“This one’s tough because marketing has changed so much in the past 5 years”, says McClure. “There are more channels than ever, channels that didn’t even exist 5 years ago with hundreds of millions of users. Think Facebook, Twitter, YouTube, Apple, Android, LinkedIn, Zynga…”
Team hires: Hustler, hacker designer
In general you want people that can build and sell products”, says McClure. “That’s the simplest way of looking at your team
Money and milestones
If you’re trying to pitch people for money, have some frame of reference for how much money you’re asking for and how you would spend it
Ultimately, you should demonstrate an understanding of exactly what you need the money for, what you’ll do with it and how you plan to make money on the back of it. Sounds simple, huh?
A nice summary of writing a full fledged business plan as well! Elevator pitch is basically business soundbite you want to say first and last in the presentation. Targeting a real and big problem is half of job for selling your solution. Your unfair advantage is closely related to why you are better or different.