The Elevator Pitch: Describing Your Company in 4 Sentences or Less

January 3, 2012 by

In my last post - The Deck: Pitching VC’s and Looking Under Rocks, I talked about putting together a few meaningful slides that can frame a productive discussion about your business. Thinking more about the topic, I wanted to share some brief thoughts about a big part of that discussion — the elevator pitch. Yes, we all know what it is and understand the importance of illustrating our value proposition. This is not a new concept and has been widely covered, but nonetheless it is still very important.

Often times when I call a company, it starts with the elevator pitch, view from 30,000 feet, high level breakdown, or whatever you would like to call it (I prefer the aviation analogy). Either way, this is meant to put your company in the best light possible, in a succinct manor that should peak further interest in learning more. It is an art of not oversharing an unnecessary amount but also providing enough information so that you stoke the fire a bit. Here are a couple takeaways from conversations that I’ve had that have left me wanting to know more.

  • Four sentences max. After that the attention starts to wane, and to be honest I’ve probably stopped listening because I am still thinking about what you have just said. It is difficult to narrow down an entire businesses (especially one that is very interesting) in a small block, but it is definitely achievable. I suggest taking out the notepad and just writing it all down and then chisel away and refine as needed.
  • What pain point do you solve, for whom, and how do you accomplish it? In the simplest way possible, you provide “A” for “B” by doing “C”. Boom, now I know what I’m dealing with.
  • Next, differentiation. Maybe it is implicit in from A, B, and C but you still need to nail down how exactly you separate yourself from the pack. Whether it’s the technology, your team’s experience, or some other factor, I need to know what your secret sauce is.
  • Finally, the current state of the business and what the next steps of the companies evolution look like. Clearly, calls that involve myself surround raising expansion capital. So giving a sense of what you are looking for in terms of an investment; size, time frame, and type of investor you are looking for.
There is no doubt this something that takes time to craft and will continue to reshape itself as your business grows. But is very useful in setting the framework for a constructive conversation and it will facilitate meaningful questions so the important details can be explored.
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Discussion

  • http://www.amazon.com/Elevator-Pitch-Toolkit-Templates-ebook/dp/B006RL5C1S/ref=sr_1_1?ie=UTF8&qid=1325623101&sr=8-1 Adam Hoeksema

    How important is it to discuss your company’s current traction in your pitch?  I tend to suggest that entrepreneurs focus on their traction in the market (if they have it).

    • Dan Lane

      Adam – I agree that traction is very important. I would say if you can fit it into the flow of the pitch, include it. But it is definitely something that will be covered once the conversation gets going. Perhaps, quickly highlighting that you are experiencing traction when talking about the current state of the business. The key here is to spark curiosity and create an interest into how and why you are experiencing traction in the market.

  • http://www.conorneill.com Conor

    Practice, practice, practice…  with the webcam, with friends…  with your dog…  with anyone who will listen.  Watch for when their eyes glaze over and you know where you need to be simpler.  

    The Founder of 3M and prof at MIT Ken Morse runs a seminar where you get thrown out if you use the word “platform” in your pitch.

  • EntrepreneursAnonymous

    Helpful post. I’d add that the business model generally needs to be one that’s easily recognizable by the VC. Pattern recognition is how many firms determine whether investments fit with their portfolio. If you’re pitching a freemium, lifetime revenue model to a firm that’s not accustomed to investing in this sort of business, you’re already at a disadvantage.

    Also, a small quibble, but it’s “pique” interest. My apologies for being a grammar hound but my mother was a teacher.