Contents
- What is a pitch?
- Types of pitching
- How to create a good pitch
- Tips for successful pitching
- Common mistakes
What is a pitch?
A pitch is a brief presentation of an idea, typically used to present a project to potential investors. The word "pitch" emphasizes its main purpose: to attract attention to the project and engage the listener. In the business environment, a pitch serves as a powerful tool for entrepreneurs and startups, allowing them to showcase their ideas in hopes of securing funding or finding a business partner.
Sometimes the word "pitch" is replaced with the term "pitching," which implies a broader presentation of the idea, including the use of visual materials and videos. However, despite the difference in terminology, both words are often used as synonyms. Pitch sessions, where multiple new projects are presented, have become popular among both startups and large companies seeking innovative solutions.
Types of pitching
There are several types of pitching, each with its own features and target audience:
Elevator pitch
An elevator pitch is a very brief explanation of an idea that should take no more than one minute. The goal of this format is to capture the attention of a potential investor so that they want to continue the conversation later. For example:
Hello! My name is Elizabeth. My company is developing an app for employee training. We create engaging materials, and 95% of our users successfully complete their training in a week. How much time does your company spend on onboarding new employees?
Idea pitch
An idea pitch is intended for a broader audience and can last up to three minutes. This format is often used at pitch sessions where many projects are presented. For example, large companies like JSC "Russian Railways" organize such events to find innovative solutions.
Funding pitch
A funding pitch is used when significant investments are needed. In this format, the speaker has between 7 to 10 minutes to present the project in detail, including its advantages and financial forecasts. Companies often create special sections on their websites where potential investors can learn more about the project and make informed funding decisions.
How to create a good pitch
To create a successful pitch, it is important to have a clear structure and follow specific steps. A classic pitch consists of five key elements:
- Introduction: briefly tell who you are and what your project is about.
- Proposal: clearly articulate the essence of your idea and specify what you need from the listener.
- Value: explain why your project could be successful and profitable.
- Benefit for the listener: indicate what the listener will gain from collaboration.
- Collaboration: offer terms for partnership or investment.
Experts recommend emphasizing real data and providing well-founded forecasts to convince investors of the project's viability.
Tips for successful pitching
One of the key components of a successful pitch is audience engagement. Interaction and trust between the speaker and the audience can play a crucial role in the event's outcome. It is especially important to be attentive to the audience, as they may display different types of behavior:
- Authority: the listener demonstrates a high status and may interrupt. Ask questions to maintain equality.
- Time: the listener states they have little time. Acknowledge that you only have 10 minutes to present.
- Analytics: the listener asks questions about insignificant details. Offer to send the analytics after the presentation.
- Award: the audience perceives themselves as the award. Do not wait for those who are more than 15 minutes late.
Common mistakes
Inexperienced participants often make mistakes that hinder a successful presentation:
- Pitching to the wrong person: it is important to research the audience in advance and choose those who are genuinely interested in your project.
- Exaggerating your success: investors often recognize distorted data and demand verification.
- Speaking too abstractly: avoid vague phrases and provide concrete data and facts.