Private Placements: All You Get is Five Minutes
Remember the days of 120-page private placements memorandums, 60-slide PowerPoint decks, and 90-minute investor presentations? That was way back like, what, five years ago? Actually longer than that, but the point is that today is a whole new world. If you have something to sell, you have to communicate it in five minutes. Sure, if you can initially hook a prospective investor, you’ll get a longer time with him or her down the line, but if you can’t set the hook in five minutes when you first have the opportunity, you are history, at least with that investor. The “elevator pitch” that used to be confined to venture capital is now de rigueur virtually everywhere. Investors simply don’t have time for anything else. And even if they have the time, they demand simplicity in the business or at least that you have the ability to express it simply. Here is a good guideline for your pitch.