1.2.7 The Art of the Pitch

Welcome to our lecture on The Art of the Pitch. As you may remember from our course on developing the opportunity, we talked about elevator pitches and talked about how the pitch is one way to encapsulate and summarize your business. We talked about many components that are included in the pitch. Things like the problem or the pain point, your solution, the target market, competitors, the team, a financial summary, and milestones. An elevator pitch is just one type of pitch however. And we will go into a lot more detail today on all the different forms of pitches. The reason for various different forms of pitching boils down to the fact that you will be talking to a wide range of audiences about what you do and that each of these audiences may require a different type of pitch and a different message. But to start off with, who should be the one pitching?
It should be the founder or someone on the founding team. Only the founder or someone on the founding team knows things like the initial product market fit, the right target segments, the right sales pitch, the characteristics of your pipeline, and your pricing and marketing strategy.
Then when preparing to pitch, there are multiple ways to present your message. There’s the high concept pitch, there’s the elevator pitch, there is a two sentence pitch, there’s a one minute pitch, and there’s a five minute or longer pitch. We’ll discuss each of these in turn. The high concept pitch looks something like this. Facebook for Professionals. What would you think that is? If you guess LinkedIn, you’re correct. What about the all-electric Porsche? Tesla. What about Google for pets that use Amazon. We have no idea. As you can see, the high concept pitch can go too far. You don’t want to be using names just for the sake of names. For example, lots of times we see people using things like, we’re the Uber for X, or we are the Google for X. Make sure that it makes sense before you put it into your high concept pitch. The high concept pitch is one of your most important pitches. You should be able to distill what your company does into four or five words. This is often the hardest pitch because it takes a lot of thought and care to think about how to describe your pitch in just four to five words. Next, let’s more onto the two sentence pitch. The two sentence pitch would look like this. For a target audience who has a need, the product name is a product category that offers a key benefit. Unlike competitors or substitutes, we are different in a key way.
Let’s take an example of a two sentence pitch. If we’re using Tesla as our example, their pitch might look something like this. For wealthy individuals and car fans who want a high-end sports car that is environmentally friendly, the Tesla Roadster is an electric car that delivers unprecedented performance without damaging the environment.
Unlike Ferrari’s and Porches, we offer amazing performance without any direct carbon emissions. Next, let’s move on to the one minute pitch. Here’s an example of a one minute pitch. >> The most widely used manufactured material on the planet is concrete. On an average, each person uses more than 3 tons of concrete a year. Unfortunately, concrete manufacturing process
contributes to more than 10% of carbon dioxide emissions worldwide. However, we have been able to develop a concrete that not only cuts the carbon dioxide emissions by half, but also it is five times stronger than normal concrete. Our design is unique because we have discovered how to change the very nano structure of concrete. This approach is environmentally friendly, and at the same time, it reduces the cost of concrete manufacturing by 40%. Given that the US market for concrete is over $100 billion a year, this makes our product extremely lucrative from concrete manufacturers. We had a team of five researchers, including three superstar professors at MIT. I myself am a last year PhD student working on innovative concrete, and we are looking for two more passionate people to complete our team for financial aspects. >> [APPLAUSE] >> Here’s another example of a one-minute pitch.
>> Hi, I’m Phil Lipman, the CEO of Evernote. Evernote is your external brain. Whenever anything important happens, you put it into Evernote and you’ll always have it on hand when you need it. You can use Evernote with lots of devices that you currently have. We have a version of Windows and for the Mac. You can also use us from any web browser, any phone, or any camera. Your memories take many different shapes. There’s lots of stuff you want to remember. So, you can use Evernote, for example, to take a picture of someone’s business card. Or take a picture of a white board or a wine label that you want to remember, or you can leave yourself a text note or a voice note. All this information goes out to the Evernote servers where it’s processed and indexed letting you do things like search for all the text in your images, letting you search by location. The information is then synchronized back down to your client, so that it’s always on hand so you can find what you need wherever you are. Everyone has two subscription levels. The free subscription and premium subscription. Premium subscription is five bucks a month, and you get virtually unlimited storage and all sorts other goodies. Thank you. >> As you can see you want to stay high level. You want to explain it in simplistic terms. And you want to be aiming for core questions. Now, let’s move on to the five minute pitch or even longer. You want to think about your five minute pitch just as an elaboration of a two sentence pitch. Often people try and pack in way too much information because they think they have five minutes or longer. And you want to stick to the same basics as your two sentence pitch. Clearly identify the market opportunity you intend to take advantage of and review the key factors for building your business.
Five minutes goes quick. You may think you have time but use your time to talk about the value proposition. Talk about the marketing competition. Talk about financial prospects and present a pro forma if you can. You want to talk about risks and certainties and hypothesis testing and analyze key challenges and risks, and how you intend to address those. Finally, where possible, don’t just make guesses. Try and back up your assumptions through research and through other data. As we’ve seen, it’s important to be clear on what you do, and who you are talking to. Try to know what your audience knows, or make some educated guesses, and make sure you build your pitch around time and audience. Thanks for joining this lecture.

Jim Rohn Sứ mệnh khởi nghiệp