A key point he made is that you need to understand the perspective of the investor when creating your pitch. By way of example, he shared his personal evaluation criteria. According to Christopher, an effective pitch will answer these key concerns within ten succinct minutes:
Initially, Christopher (and most investors) will narrow down their pool of potential investees by looking for deals that meet three criteria:
- An exceptional entrepreneur or team who has experience and drive.
- Large enough and interesting enough market opportunities.
- A smart, differentiated, and defensible product/service that will stand out initially in its market and be able to protect its margins over time.
Then, remaining deals are compared to each other using what he calls the three Ps:
- Potential (how big is the possible return?)
- Probability (whats the chance of success/exit?)
- Period (whats the timeframe to exit/profitability?)
When crafting your pitch, you wan to make sure youre addressing these criteria. Remember, a bigger, faster, more profitable idea is not necessarily better, but it is a better candidate for, and will have a greater chance of attracting, early stage risk capital.