Lessons for the youth on how to make successful pitches to investors

Pitching is one of the most critical skills for young people seeking investment opportunities, yet it is not something that comes naturally to many people.  It takes a lot of preparation, audience analysis and being very precise to guarantee chances of success. 

Young people preparing to pitch their projects to potential investors should ensure that they familiarise themselves with the basic knowledge that the investors require.

Occasionally, there is the temptation to hide information but a competent investor can easily discover hidden information, to the detriment of the person making the pitch.

A compelling, irresistible, outstanding and unforgettable pitch is one that is delivered in the form of a story. Young people with innovative ideas should perfect this story in a way that will capture the listeners and potential investor’s attention.

TIME MANAGEMENT

The focus is to make the pitch unforgettable. An audience can get easily bored with excel sheets, tables, valuations and numbers. As a matter of fact, if they want that information, they can get it. However, everyone loves a good story, even the most data-driven people.

Time management is extremely important when pitching. An innovative idea does not amount to much if it cannot be expressed in not more than five minutes.

The ability to do this shows that the idea has been internalised and is well-thought through.

If the idea is well-articulated, investors will be interested in asking questions and giving guidance where necessary.

Time is the most valued asset for focused people and investors are no exception. Conveying respect for their time is interpreted that the young person pitching is likely to treat their funding with respect.

PITCH

This explains why it is important to develop an absolute focus on the core components of the pitch. 

Potential investors pay attention to what they will get as return on investment. They want to hear how much their investment will give them in ten years. As such, when the youth are making a pitch, the revenue model should be revealed explicitly.

Young people should show potential investors the real picture or actual product but cautiously so that all the time is not wasted on the product at the expense of the business idea.

They should sell the uniqueness of the project or product because investors want to hear how the idea is different from all others in the market.

It is important to use demographic and psychographic features to pinpoint targeted customers. Investors are interested in getting the picture of customers along with the relevant data.

INNOVATIVE IDEAS

To be persuaded, investors have to see an airtight strategy for getting the product to the market.

Young people should also show passion and enthusiasm about their innovative ideas. When making a pitch, increase the level of positive energy but do not overdo it. Enthusiasm will not obscure sophistication, insight, integrity and realism. It will only enhance it. This should be coupled with smart dressing, paying detail to the social and cultural context so as not to offend potential investors.

In conclusion, the aim of a pitch is to find that one investor who will be persuaded and become eager to invest in the innovative idea. We hope the ideas shared will help young people to have a truly irresistible pitch whenever opportunities present themselves.

Dr Kiambati is a management consultant and a senior lecturer at Karatina University. kellenkiambati@gm ail.com. Dr Kariuki is a social scientist, management consultant and a lecturer at Karatina University. [email protected]