The Elevator Pitch is merely the packaging to the juicy contents inside; and it's also the first (and sometimes only) chance that an entrepreneur can interest a potential investor. It's not right but it's true that often the investors never go beyond this "packaging" if the first impressions don't entice them to pursue the venture further. Since we're not about to change human nature any time soon, let's just accept this as part of the fund raising terrain. So here's a quick guide to how entrepreneurs can pass through the "inner gatekeepers" in the investors' minds:
1. Why are you here? “We are here because ... [looking for CEO, looking for marketing planning help, looking for advisors, etc.]
2. Who are you? “We are [COMPANY NAME]. We make/provide/sell [COMPANY PRODUCTS/SERVICES] for [TARGET CUSTOMER] who need [SOLUTION] to solve [PROBLEM].”
These points should take no more than 20 seconds. One or the other (or sometimes both) is often enough to pique an investor's interest. If the entrepreneur is successful in eliciting a "tell me more" response, then continue with:
3. What is the market opportunity? Describe the problem that you are solving with your company products/services including size, why it hasn’t been solved yet, etc.
Pause for another "tell me more", then:
4. Why do you think you will win? “Unlike [COMPETITION], we [GIVE UNIQUE VALUE PROPOSITION].” Also, identify some management expertise you have or can access to deliver on your business model, identify your intellectual property strategy and other barriers to entry, etc.
Pause. Still interested? Then:
5. What do you want from us? Identify what your company needs in terms of “talent” (e.g. prototype development, marketing, finance, etc.) to get to the next level.
Pause. Did the above 2 to 3 minute exchange elicit even further interest? Congratulations on making a positive first impression. The entrepreneur's next meetings with the potential investors will go over the exact same 5 points - but in much further depth and details.
Good luck - may your audience be attracted enough by your "packaging" to delve into the content.