Before considering a prospective investment, venture capitalists and other inves

Question

Before considering a prospective investment, venture capitalists and other investors often want to hear what they call the elevator pitch. This is the concise description of the company, its product or service, its market(s), and its competitive advantages that an entrepreneur could give in the time it would take to ride up an elevator. In focusing on the importance of the “Elevator Pitch” this week, and based on our books focus on it, address the following questions: 1) Why is the “Elevator Pitch” so important and what are the keys that make a pitch a successful one?

Explanation / Answer

Elevator pitch consists of following key elements to make pitch a successful one:

1. The problem – Highlight the problem – use data visuals

2. The solution – How you are going to solve the problem? - quick solution overview

3. Target market – Which are a segment you are targeting?

4. Competition – who are the competitors?

5. Team – Brief team highlights

6. Financial summary – Quick financial projections and profitability

7. Milestones – Key stages of implementation

The objective of an elevator pitch is to present B plan to an investor within 60 seconds. It covers all above mentioned topics and tries to convince the investor. It makes you think systematically and present only very important points which are relevant to the investor. To check team readiness, Investors use this option and assess how prepared you are and also highlights very important part of B Plan without wasting investors time.

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