How To Write A Spotless Pitch For AI Start-Up Funding
To write a spotless pitch for AI start-up funding, there are several things you need to consider. AI has for a while now been at the forefront of the tech industry. While it’s definitely one of the most intriguing fields out there, it’s essential to underline that there will be many other startups just like yours trying to attract investors to fund their aspirations. To many, successfully pitching a product may even be more complicated than building an actual AI algorithm.
The reason why it’s complicated to create a winning pitch in AI is that you have to understand the investor’s psychology, in order to be able to persuade them. Just how complicated is that? Well, the data suggests that only 20% of startups ever receive some sort of funding from VC’s.
In this article, we’re going to look past the structure of a pitch and focus on the psychological tips and tricks behind it. Let’s dive right in, shall we?
Value is the core of your pitch
A renown Venture Capitalist, Michael Dolbec, once boiled down the interest of investors around the world to a single sentence: “We fund valuable outcomes, not science projects.” With that in mind, his wise words can provide us with a wealth of context for AI startup pitches.
The people that choose to invest in your businesses aren’t necessarily preoccupied with the technological advances you can reach, but rather the value they could provide to the market.
Here are just a few value-centric ideas that you should emphasize on during your pitch:
Underline your understanding of the market’s and the customers’ needs and how your product will serve them.
Demonstrate you have the necessary knowledge and tools to create the product, but you also know how to advertise and market it.
Your product is scalable, and there is an international market for it.
Cold facts and numbers are an essential part of your pitch. However, it’s crucial to be able to communicate how your services or products will enrich the life or work of your clientele. To do this, you need to strike a more emotional, somewhat humanistic chord during your pitch.
Tell a captivating story
Storytelling is an essential component of a compelling presentation.
What’s the connection between storytelling and persuasion? Dopamine and oxytocin. Stories captivate us and create a powerful sense of suspense. As a result, your audience is very curious to learn what happens next.
The anticipation that culminates will cause the listener’s brain to increase dopamine levels, thus making them more passionate and curious about your project.
More importantly, an impressive study published in 2013 by Paul J Zak, suggests that stories can also considerably elevate oxytocin levels in humans.
The most mind-blowing part is that oxytocin is a hormone that is released in the human brain after positive social interactions like handshakes, kisses, cuddles, and so forth.
Therefore, it’s a good idea to structure your presentation as a story. A story that has an introduction, a culmination, and a denouement. These components will allow you to sound much more relatable.
Tech is great. What about marketing?
At the end of the day, investors are business people — they care about sales and the proper monetization of your product. It’s essential not to focus on tech too much when speaking about your team, because tech experts aren’t necessarily marketers and salespeople, who are crucial for your products successful monetization.
Similarly, there are many things you need to take into account when presenting your team:
Take high-quality pictures of your team and make sure that each team member has a headshot — there’s plenty of research that indicates that it makes your brand more likeable and relatable.
Have a precise role distribution in your team. Show your investors that you have a clear plan of action and that each person plays a specific role in it.
Emphasize your team’s relevant experience. Investors are interested in teams that know what they’re doing.
Often name-dropping your mentors and advisors is a great idea. This should only increase credibility.
Investors aren’t really into teams that comprise exclusively of technical personnel. As businesspeople, they want to be sure that there is an adequate focus on marketing and sales within your team.
We asked Lindsay Goldman, a writer and marketing specialist at Trust My Paper and Studicus, about the importance of marketing in tech pitches. Here’s what she told us: “Tech professionals create great technology, marketing teams turn it into a product. Professional diversity is a critical component of a successful and scalable product.”
Radiate your pitch with optimism
You’ve had the opportunity to speak about your team’s past. You’ve also had the chance to talk about the present — the result you’ve achieved as a team. Now, it’s time to focus on the future. This is a vital part of your pitch.
This isn’t just a part where you speak about analytics and the projected growth of your company and its place on the market. It’s also important to share your dreams and aspirations with your potential investors. They need to know that they’re investing in a team of optimistic professionals that can dream.
The take-home message
A well-crafted pitch will undoubtedly increase your chances of getting funded, but don’t forget that there’s only a fraction percentage of startups that eventually walk away with the money. The takeaway? Be persistent. Chances are you’ll pitch your business multiple times, but you could certainly succeed at some point.
Every time you pitch your business, it’s a chance to learn and improve both the pitch and the presentation.
Here’s a brief outline of the things you need to take into account:
The value should be at the core of your pitch. Show that your product can provide value to a lot of people.
Tell an entertaining and captivating story. People will connect to you.
Emphasize the diversity of your team and their qualifications. Don’t skip on marketing and sales specialists — they matter to investors.
Show that you can dream and that you’re optimistic about your project.
Dorian Martin is a graduated Digital Marketing Specialist and an Editor at Best Essay Education. He has dedicated his professional career to content creation and online marketing, fields in which he aims to develop through contributions to writing platforms such as WoWGrade. In his spare time, Dorian makes an effort to write for his personal blog, Not BusinessAsUsusal, and provide his readers with up-to-date insight into digital content trends.