Here's an outline of the best 20-minute investor pitch you could make!

The most important items to emphasize in a 20-minute investor pitch are:

1) Team – you guys have done this before, know the space well, and are confident (but not cocky) in your execution.  There also are no holes in your team for the next 6 months or so.

2) Market – you have a solid understanding of the market potential and dynamics, and have a solid go-to-market strategy.

3) Product – you’re not in R&D, you’re way past prototype and over the “technology risk hump.”  Also, you’re not just a hardware play…you’re a systems play:  a complete solution for those wanting/needing a complete package for <whatever you do>.  Don’t emphasize the hardware aspect (if you have one) too much…this will scare some investors away…focus on the complete, “shrink-wrapped” solution that you provide.

4) Sustainability – you’re not a one-trick pony…you have a product family.  You also have IP, but you’re not resting on just that…your product roadmap is solid with products that go beyond just the first product, which will keep you ahead of anyone trying to do the same.

5) Customers/Partners – you’ve already got a list of companies wanting to buy the product.  And, perhaps you have a partner interested in you…a possible early exit for investors.

6) Competition – who’s out there already in this space, and how are you so much better; how are you going to keep knock-offs from cutting into your share and/or margins.

7) Financial sustainability – ASPs, COGS, margins, realistic growth, cash flow, minimal need for and size of future rounds.

8) Use of funds – this round will take the company into initial production with revenue not far behind (right???).

9) Terms – make them attractive

Overall, you want to give the investors that “I can’t miss this deal” feeling substantiated by the content of the slides you make from the outline above.

A "one-trick pony" isn't enough

If you are like most entrepreneurs, you want to build a big company.  To do this, you not only need to have an initial product that you can develop without a ton of money, but also a product roadmap.  It might be sufficient for some to develop and market their widget (or service) and launch it on a website, etc., for everyone to see and buy, with no real vision of follow-on products.  This is often called a "one-trick pony."  Perhaps this is just fine for them.  This is a "lifestyle" business, in other words, one that is just fine for the entrepreneur, bringing in a nice paycheck on his profits, but not a good investment for an outside investor.  An investor needs to see an ROI on his investment, and a lifestyle business will most likely not qualify.  So, before you approach an investor, be sure to have a vision of how your company will evolve beyond your first product and clearly communicate this vision on a chart with a timeline.  Include costs of developing these future products and resulting market penetration.

Investors invest in people, not products or services

You've probably heard this before:  Bet on the jockey, not the horse.  Another one:  I'd rather invest in an "A" team with a "B" product than the other way around.  It's the A team that can make a questionable product/service successful, and if that's not possible, it's the A team that will know it can't be and kill it (or morph it).  Why is this?  The A team knows how to assess it.  And, more importantly, the A team has the contacts database to assist him/her in assessing the market potential, and getting it into the market.