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By Rao Mulpuri
A good "elevator pitch" should address the following parts:
1. Investors back a founding team (with a compelling concept): Note that you are selling yourself foremost; therefore, be compelling (upbeat delivery, varying pace, pitch & tone throughout). As a rue of thumb, try your elevator pitch first with your partners or kids to see whether they can understand you, and your technology.
2. Get quickly to the main point, and then circle back with supporting detail. Make a brief statement about your company and/or technology (at all times, avoid use of jargon/acronyms/buzzwords - business plan can provide this stuff. Focus on humanizing your technology). Open with an attention grabbing statement and use a simple analogy/metaphor to position your concept relative to an existing market.
3. Identify and introduce your market - with special attention to total addressable market or TAM size and its growth, if possible. Once the market is defined, identify the market's unmet needs.
4. Highlight how you and your technology will address the unmet needs (which you identified earlier). You can start by addressing the competitors (name them) and the "differentiator" of your technology (how is your technology different from others). Note that the differentiator should be related to the market unmet needs you identified earlier. It is also critical to demonstrate that your technology adds value (quantify, if possible). Also, note that your typical VC or Angel is aware of the market (they may have seen several business plans) - so be upfront in addressing your competitors. It is always good to identify and respect your competitor. For example, never say that you don't have a competition. If this even is true, then look for players who could move into your space very quickly.
5. Identify the management strengths and why you think your business model is sustainable and provides competitive advantage. You may also want to indicate the funds being requested and your estimate of cash flows (for next 5 years). Refrain from using words like "these are our conservative estimates" - they tend to signal that you don't know your market - be very specific and show confidence.
6. Finally, bring everything together with a powerful concluding statement - remember the attention span of an average human is ~10-20 sec.
7. Leave time for questions and be prepared to handle them. Note that those that recur each dry-run determine what's missing from core pitch. Also a commitment to get back quickly to the questioner is better than a waffly answer.
8. Wrap up with a Call to Action. Don't forget that the pitch is a to request a meeting to present your business plan and discuss funding needs, and get referral contacts to supplement the founding team.
