Investors listen to a lot of pitches every day from startup owners who wants funding, and from established businesses seeking more financing to expand.
This can get very boring overtime for a venture capitalist. I mean, they’ve heard all the ‘my problem statement is this….’ and the ‘my product is going to change the next generation….’ power speeches.
So what can a business owner seeking investor funding do differently?
Pitch videos, of course!
With a pitch video, you can transform your ordinary, boring pitch into an exciting yet powerful presentation.
Investment pitches are usually done in the form of PowerPoint or Google slides presentations.
Notwithstanding, you can draw more attention by also crafting a compelling video pitch for your presentation. These days, most accelerators and pitching competitions make video pitching one of the judging criteria. A time frame of about 60 to 180 seconds per clip is usually given. Interestingly, your ability to turn these golden minutes behind a camera into much-needed cash can take your business to the next level.
Remember that a picture is worth a thousand words, this is a perfect opportunity to ‘show’ not ‘tell’ what you are passionate about. It could be a video recording of yourself or your team talking about your business, and the solutions you bring to the market.
Or a well-illustrated or animated video that explains your business in a few short minutes.
Why video pitch?
- Videos sell emotional stories easily by using a healthy mix of audio output, colors, motion pictures, and infographics.
- You can be fun and creative with a pitch video. It brings life to a presentation instead of the normal, boring pitch investors are used to.
- With videos you can make your business story a resonating one with your audience and get them to put their bet on you.
- Once created a video can be used anytime, anywhere to tell your peculiar story of how you started, the lives you are impacting and the future your business envisions.
- You can break down complex concepts about your business into relatable scenarios when using a video to pitch.
- Usually, videos are less crammed with information unlike pitch decks. Instead, they highlight what each investor needs to know to make a decision, while building emotional connection in an engaging format.
How to create a compelling business pitch video
Here are guidelines to creating a compelling business pitch video:
You have all of the first ten to fifteen seconds to showcase who you are, what you do, why you do it, and your driving force. This includes your name, company, expertise, and experiences. Your team, and what makes you the best team for the job.
In describing your company, you could use a sentence that sums everything up. Here is an example, “Hello I am Roberts Anthony. I’m the CEO of XYZ hair products. We make organic creams and soaps for people who are bald and want faster hair growth without side effects.”
You’d perk up any investor’s interest with that kind of opening.
Then go on to say, “my team and I made a research on 500 people and 66% agreed that, ‘healthy hair makes a person truly beautiful.’ Steven Walt the team’s Trichologist, is a professional who has successfully treated more than 300 cases of alopecia, a hair loss disease.” You could briefly mention each key team member’s accomplishments.
All under 15 seconds.
2. Problem statement
Which gap have you identified in the market that your business is supposed to fill? You might be tempted to make a long list of problems here but investors really just want to know your strongest selling point to determine if the business is market worthy and sustainable or not.
The next few scenes of your video pitch should describe clearly how your business intends to solve the problem shown in the previous scene.
Bring life to your product by showing people using the product, explaining how it works and what you have done so far with the product.
4. Business model
Just like when using a pitch deck, investors want to know how your business will make money using your strategies.
It might be necessary to include graphs, charts, and other business-related information but keep them to the barest minimum.
5. Unique value proposition
Illustrate what makes you different from the competition. What new value are you bringing to the market and why should an investor pay for your next level.
Your vision of what the market could be like and what you plan to achieve if given the chance.
6. Other important information
Other important details like traction, market share, competitors should be briefly described in your video pitch. Explain complex terms using a combination of simpler words, clear graphics, and audio output, with a unique combination of motion clips.
7. Don’t forget to ask
The reason why you are pitching in the first place should not be left out of your presentation. The last ten to fifteen seconds should be dedicated to your funding needs and how you plan to use the opportunities when granted.
Additional tips to make your pitch video truly outstanding:
- Keep it short and simple: There’s nothing worse than watching a never-ending video that is loaded with so much technical terms and industry-related information. Nobody likes to watch a video that is too long and says too much. That’s a sign of a very bad presentation and trust me, you won’t get any investment with that. Instead, your video should say the necessary things in a very short duration usually under a minute or a bit more.
- Make your video pitch engaging, interesting to watch while also being informative: Stating the facts and figures is important but you must take care not to overwhelm your pitch with too much numbers and technicalities. Make your facts and figures not just about ‘numbers’ alone, investors have heard so much already. In lieu of those you could use pictures and video clips to depict population, total market share and so on.
- Invest in good graphics: There should be nothing that speaks of poor quality imaging, lighting or blurry scenes in your video presentation. Perhaps, it’s just an idea you’re pitching and do not have a ton of cash yet, investing in stunning graphics would make your idea a total sellout because of its uniqueness.
- Have a script before anything else: A script tells you what important points you want to make with your audience and helps keep you in track. You can run your script with team members and get them to add anything you’ve left out. That said, anything outside your script should be discarded while the cameras are on. An alternative to a script is a storyboard. This is an organizer that tells you the sequence of images and motion pictures for each story scene of your video. Do not jumble ideas up and expect a good impression on your investors.
- Make it real: If you’re doing a self-record, imagine that a potential investor is seated right in front of you and deliver your best as you would in a live pitch. Make it as real as possible. Be relaxed while stating your arguments.
Also, remember to look straight into the camera, smile and show your passion for what you do. Be audible too, make sure your words are coming out clearly for easy comprehension. Where you need a voice over artist, try to get a native English speaker if it is possible. Avoid all kinds of unnecessary background noise when doing a self-record.
- Tell stories in your video pitch: Stories are captivating and explains concepts vividly. Be creative with exceptional storytelling and create an emotional bond between your company and the investor.