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Biggest Mistakes People Make When Pitching Investors
Biggest Mistakes People Make When Pitching Investors
Founders, fund managers and deal sponsors who are preparing to pitch family offices and want to avoid common first-meeting mistakes.
The short version
Todd runs a relationship-based family office and names one mistake above the rest. Pitchers start talking about the project before they learn what the office is after. His team gets pitches multiple times a day. Its 60-plus investments came from about 12 relationships, and each new relationship often leads to more opportunities. He wants pitchers to get to know him, his family and their focus first.
Sean points to preparation. He described a pilot project that had to go live within 36 months. The pitchers' numbers did not match an operator that was exiting 150 other sites. In another pitch, on a $35 million EV deal, the presenter could not say how long a battery takes to charge. Simple math gave 6 to 8 hours, while the trucks can be down only 1 to 3 hours. A third speaker urges pitchers to stand out.
Five points worth keeping
- Learn the investor before pitching. Todd says the biggest mistake is describing the project before understanding what the family office is after. He wants pitchers to ask who he is, what the family does and what it focuses on.
- Relationships drive family office deals. Todd's office has 60-plus investments, and they came from about 12 relationships. Signing on with one partner often leads to more opportunities.
- Know your numbers and risks. Sean says preparation means understanding your numbers, your thesis and the risk metrics. He finds this is the biggest component for him.
- Basic questions reveal weak preparation. If a pitcher cannot answer a simple question about the project, Sean says getting across the line is already hard. The battery charging question in the EV deal is his example.
- Stand out with a clear viewpoint. A third speaker says everyone claims to be doing AI and sounding the same hurts. He suggests finding what makes you special, working hard and being loud about your viewpoint.
In their words
"They'll start to talk about the project or the opportunity first before really understanding what we're after. That's the biggest mistake."
"If you can't answer a simple question about your project, you're already having a hard time getting across the line."
"Work like an animal. Show you're prepared to do whatever it takes to protect the money and the people and be the greatest and loudest spokesperson in the world about that."
Facts and figures
- Todd's family office has 60-plus investments that came from about 12 relationships.
- Sean reviewed a pilot that had to go live within 36 months, and its numbers did not match an operator exiting 150 other sites.
- In a $35 million EV deal, simple math showed a 6 to 8 hour battery charge, but the trucks can be down only 1 to 3 hours.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Biggest Mistakes People Make When Pitching Investors. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Related questions
- How do I pitch investors over Zoom effectively?Treat the Zoom call as the first meeting and aim to earn a second one.
- How do I handle tough questions during an investor pitch?Prepare for them before the meeting.
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
Questions about this video
What is the biggest mistake when pitching a family office?
Todd says it is talking about the project or opportunity before understanding what the family office is after. He wants pitchers to learn about him, his family and their focus first.
How fast can an investor tell if you know your project?
Sean says he can tell within the first few minutes of conversation whether a pitcher understands the project. Weak answers to simple questions show it quickly.
What should you be prepared to explain?
Sean says to understand your numbers, your thesis and the risk metrics. He gave an example where a presenter could not say how long a truck battery takes to charge.
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