Allon Raiz | CEO | Raizcorp | mail me |
A great pitch can open doors – and a bad one can shut them just as fast. After years of listening to thousands of real-life investor pitches through the Pitch & Polish competition, I have seen the same mistakes derail even the most promising ideas.
There are four most common pitching mistakes entrepreneurs make when pitching for funding – and what to do instead if they want their pitch to land.
Leading with the deal
Too many entrepreneurs open their pitch with, “We are asking for R3 million for 20% equity”, without first making a case for the value of the opportunity. This kind of thumb-sucked valuation – unbacked by evidence – instantly undermines credibility.
Investors want to understand the market and your experience. They also want to gauge the probability of success before they hear your ask.
And when you do get to the numbers, you need to ground them in real, researched assumptions – not fantasy maths. Therefore, lead with substance, not speculation and leave the deal discussion for when the investors are actually interested.
Selling the idea instead of the team
Ideas are everywhere. What investors want is execution, and that comes down to the people behind the pitch.
Many entrepreneurs focus solely on their concept and forget to highlight their own experience or their team’s capabilities. However, investors are backing you, not just your product. As such, entrepreneurs must emphasise their team’s relevant expertise, why they chose them, and how they will help them navigate challenges.
Investors would rather invest in a mediocre idea that has a robust team behind it, than in a great idea that has a mediocre team. Show you’ve got the people to make it happen.
Claiming you have no competition
Saying, “We have no real competitors”, is one of the fastest ways to lose investor confidence.
Every product or service competes – for attention, money or time. Smart entrepreneurs show both direct and indirect competitors. They also position themselves clearly using tools like a competitor map.
What makes you different? Where do you sit on the price versus quality or benefit scale? A thoughtful competitive analysis proves you understand your market. It also gives investors confidence that you’re ready to win in it.
Not being specific
“If we just get 5% of the market…” is vague, lazy and unrealistic. It glosses over how hard it is to gain even a tiny bit of market share, especially against dominant incumbents.
Instead of speculative percentages, you must talk specifics. Who are your target clients? How many units will you sell, to whom and at what cost? Investors want to see clear, grounded thinking – not hopeful back-of-the-napkin maths. Precision builds trust. On the other hand, generalisations break it.
Pitching is not just about confidence – it is about preparation, clarity and strategy. Avoid these four common pitching mistakes, and you will not just sound like a better entrepreneur – you will be one.
FAQs: Pitching mistakes
Q: What are some common pitch mistakes to avoid when presenting to investors?
A: Many entrepreneurs make common mistakes when pitching to investors, such as being overly complex or using too much jargon. It’s crucial to keep your business pitch clear and concise to ensure that your message resonates with potential investors.
Q: How can I ensure clarity in my business pitch?
A: Clarity is vital for a successful pitch. Focus on delivering a straightforward message about your startup’s value proposition, target market and business model. Avoid unnecessary technical details and ensure your pitch deck is visually appealing and easy to follow.
Q: What should I include in my pitch deck to impress investors?
A: A successful pitch deck should include key sections such as your business idea, market analysis, financial projections and traction. Additionally, provide insights into your competition and your strategy for growth, as these elements can make or break your fundraising efforts.
Q: How can I effectively handle tough questions from investors during my pitch?
A: Preparing for tough questions is essential for any entrepreneur. Anticipate potential questions regarding your financial projections, target market and business model. Practice your responses to ensure you can address these concerns with confidence and clarity.
Q: What is the time limit I should aim for in my pitch presentation?
A: Generally, a winning pitch should be around 10-15 minutes long, allowing time for questions. It’s important to be concise and respectful of your audience’s time while still covering all critical aspects of your business plan.
Q: What are the financial projections I should present in my pitch?
A: Financial projections should include your revenue model, expected expenses and profit margins over a specified period. Investors want to see realistic projections that demonstrate your understanding of the market and the potential for growth in your startup.
Q: How can I demonstrate traction in my pitch to investors?
A: To showcase traction, provide data points that illustrate your startup’s growth and customer engagement. This could include sales figures, user acquisition rates or partnerships that validate your business model and indicate market demand.
Q: What are the seven mistakes to avoid when pitching to investors?
A: The seven mistakes to avoid include:
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- Lack of clarity in your message
- Overly complex pitch deck
- Ignoring audience engagement
- Underestimating financial projections
- Failing to address competition
- Neglecting to highlight traction
- Not preparing for tough questions
Q: How can I make a great first impression during my pitch?
A: Making a great first impression involves being well-prepared, confident and passionate about your startup. Start with a strong opening statement that captures attention, and ensure your delivery is polished and professional throughout the pitch.
