The last few months have changed many things. When the lockdown started, in March, many of us thought this would be lifted in three weeks, but that was not to be and even today, when we have “Unlocked”, life has changed ... at least for the next few years. The pandemic has forced us to change and adapt for the long term.
Virtual is Real: Life has moved into the virtual—meeting in person is almost impossible with physical distancing. Hence online socialising is imperative: video meets, LinkedIn, Twitter, Instagram, etc., have become primary ways to connect/network! And therefore, it has become key to find the balance between the formal and casual, between the serious and non-serious. It’s critical that our communication, however brief, has the right words, tone, correct spellings and grammar, and balances ease and respect. Many of us in the start-up world are in a hurry and take our online messaging lightly. But it puts us on the back foot from the word go!
For entrepreneurs, online/video pitches are here to stay and honestly, it’s a huge advantage. These are time efficient and have a far wider reach for both investors and entrepreneurs. Even as physical distancing diminishes, this model will continue. However, it has its challenges: communicating with body language and maintaining eye-to-eye interest are usually not possible and yet the audience needs to be engaged. This demands a swivel—do not present slides! Reading a deck of slides is the perfect formula for disengagement.
Hence, what will be the “door opener”? It is still the pitch deck—a sharp, clear, focused deck and well-researched. This must provide all the data on market size, competition info, delivery model, financials, team background, risk and risk-mitigation strategy, etc. Remember the format, font, colours, number of slides—all matter. This is what will bring the investor to dial in on the video call.
At the investor pitch session, it simply doesn’t make any sense to “read” through your slides. As he/she is now in the room, it’s important now more than ever before, to talk through the story with clarity and passion, without looking at your slides as it is a distraction. You cannot afford to take your eyes off your camera, which by the way you cannot turn off. If you find it difficult to talk to blank screens as many people don’t switch on their video, get your co-founder to switch on his/her video! That will help. As the investor starts to get a handle on your business plan and you are interrupted with questions, welcome these! This is the best endorsement of investor interest. While it is important to answer the questions, it is also imperative to say so when you don’t know the answer—it is your chance to demonstrate integrity.
Virtual pitches need some perfecting: short crisp sentences, delivered slowly, with the right intonations, at the right pitch—you don’t want to be asked to repeat every sentence or be extremely loud. It is good to stop at logical intervals to invite questions, though this does need some good scripting. Investors prefer to invest in teams and just having your co-founder join the pitch is not enough. You need to be weaving each other in and passing the baton amongst yourselves during the presentation. This will need some rounds of dry runs to bring the best out of each of you. Remember, both of you could also be in different locations; so you will need to develop your own cues as you will also not have the advantage of body language. While you may have the perfect closing remarks, adapt quickly: by ensuring you had addressed the questions and promised to respond to the queries/clarifications asked.
All of us are at home and we dress casually, but when you are presenting, it is important to project a sense of purpose and seriousness. It doesn’t mean you need to wear a suit/tie, but on the other hand a dishevelled look doesn’t really help your cause. You are visible, so your posture is your body language. You also want to ensure what is visible on your screen apart from yourself—you really don’t want the open toilet door to be in the frame! Also, do make sure you are in a quiet corner of your house/office: background noise is very disturbing, especially so as you will be unmuted throughout the meeting. It’s very useful to have pre-checked your laptop, video link and connected with the organisers a day ahead of the meeting and then again 15 minutes before your pitch. Technology engages but when it malfunctions, it disengages ... very quickly!
The pandemic has hit, but everyone has started to adapt to live with it. Hence, don’t make Covid the central point but use it as a collateral to briefly share how you handled the business during the lockdown and how strong the fundamentals are for the long run.
Early-stage investors want to add value beyond writing a cheque. It is important to have done some research on your investor: get an understanding of the companies they have invested in, etc. And bring out the value-adds you would hope for from the investor. That’s a huge engagement point and will usually get you the next meeting!
And if you are able to get to investors through shared connections, absolutely go for it! It is a good handicap to start with.
Padmaja Ruparel
Co-founder, Indian Angel Network, and Founding Partner, IAN Fund
(padmaja@indianangelnetwork.com)