What do investors want? Six pitching tips for 2017
Source: http://benjaminball.com
Find our more about this article at: http://benjaminball.com/blog/investors-pitch-tips-2017/
While we wrote this piece with our Private Equity clients in mind, there are good lessons here for anyone pitching to investors or delivering new business pitches.
What does it take to be one of 2017’s deal-closers? During the past few months we’ve been quizzing investors about what successful fund managers are doing differently.
We’ve identified six main themes from their feedback that you can apply to your next pitch.
These six pitch tips are essential reading for anyone speaking to investors or delivering new business pitches in 2017:
1. Think conversation, rather than broadcast
Investors tell us that fund managers often ask what the investors wants to cover in a private equity pitch meeting… but then default to their standard spiel anyway.
Or investors ask a question, and are told that it will be answered later on in the presentation. More often than not, the question never gets addressed.
The best pitches are conversations. In fact, the more interaction the better, as this helps the investors feel engaged and interested.
Takeaway: Think of your pitches as conversations or discussions, rather than formal, one-way broadcasts. Ask questions, act on the answers and respond to questions from investors as and when they arise.
2. Test your team dynamics
Investors say one of their key tests is how well fund managers interact with each other. Does the team present a united front, or do the individuals contradict, interrupt or ignore each other?
When one person is talking, do the others remain attentive and engaged? Or do they thumb their phone screen or look impatient until it’s their turn to speak?
Another warning sign for investors is when only the most senior GP speaks. They want to hear from everyone in the room. Otherwise, why are you all there?
Takeaway: Check if you are presenting as a team or a group of individuals. One way to do this is by role-playing different meetings and filming your pitch rehearsals. Analyse your team dynamics and polish your imperfections before investors see you.
3. Tell the truth
Some GPs are the most consistently successful business people in existence — based on their pitches.
Bad deals are excised from track records, performance is adjusted in infinitely creative ways (explained in a footnote in tiny text) and simple questions receive vague, elusive answers.
Several investors told us they’ve terminated pitches immediately after encountering the above tactics. Your private equity pitch is the start of what will hopefully become a long-term relationship. That requires mutual trust, which can only come from transparency and honesty.
Takeaway: Investors know that if it sounds too good to be true, it probably is. Acknowledge what you haven’t done so well. Talk through what you’ve learned from it or how you’ve changed your strategy as a result. Then, when you speak about your successes, you’ll have far greater credibility.
Source: http://benjaminball.com
Find our more about this article at: http://benjaminball.com/blog/investors-pitch-tips-2017/
