Four Cornerstones of an effective Elevator Pitch

So what information should your elevator pitch (initial case for investment) contain? Here is a brief overview of what Edge Venture consider to be the key phases of the elevator pitch. This should help you structure your pitch so that your target investor understands your business and it’s potential.

Step 1 - Concept

This is quite simply what your business does. It pays to kick off with a succinct one sentence description of your business which will make it immediately apparent what your business is about. You can do this by linking it to something that the investor can relate to, so as to align the investors frame of reference. For example with Edge Venture we could say “Dragons Den Online” which in three words has conveyed to the audience what the business does.

A good rule of thumb is to create an impactfull one-liner that could be understood by either an 8 year old or an 80 year old. In doing so you can be confident that the investor will immediately grasp the concept.

Step 2 - Market

This is often an under-utilised aspect of the elevator pitch. Often it is glossed over and focused placed on other areas of the business. It is very important that you both understand your target market and express that understanding to your audience. A potential investor is going to want to appreciate the scope and size of the target market and expressing this knowledge in the Elevator Pitch is going to give the investor much needed confidence.

Step 3 - Model

This is obviously how your business will make money. We believe that it is best to leave specific financial detail out of the elevator pitch, financial projections should be left to further discussions later down the line. For now you only need to focus on the revenue models and the various income channels your business will have.

Step 4 - Execution

This step is arguable the most important. You need to convey to the investor that you and your team are ideally suited to make your business a success. You should focus on how the skills of your team will mean you can capitalise on the potential. If you are lacking in any one area it pays to explain any strategic alliances or support you have in the business, or with regard to Angels, what you believe they could “bring to the party”, beyond the capital injection.

Edge Venture are here to help

In future posts we will be discussing each phase in more detail and giving your more in-depth insights and advice to help you prepare an attention grabbing, investment getting elevator pitch.