In last month’s article, I explored the art of pitching with proof, giving founders essential tools to inspire investor confidence through clear, evidence-based communication. Yet even the most prepared founders can fall into common traps that undermine an otherwise compelling pitch. In today’s challenging funding landscape, these mistakes are more than small missteps — they’re potential deal-breakers.
This article will help you identify and correct pitch mistakes you can’t afford to make, covering everything from knowing when to stop talking to building genuine connections. By avoiding these pitfalls, you’ll engage investors more effectively, gain their trust, and make your pitch truly unforgettable.
8 Common Mistakes Founders Make When Pitching Investors
- Talking too much.
- Telling instead of showing.
- Not listening closely to investor questions.
- Not being fully prepared for investor questions.
- Overcomplicating the message.
- Focusing solely on the business and not the people.
- Pushing for a final commitment too soon.
- Not following up after the pitch.
1. Talking Too Much
Many founders feel compelled to pack too much into their pitches, resulting in excessive talking and a loss of focus. When founders monopolize the conversation, investor engagement and opportunities for valuable feedback become limited.
Solution: Balance Speaking and Listening
Aim for investors to speak at least 60 to 70 percent of the time. This amount indicates they’re engaged and allows you to gain insights from their reactions and questions. After presenting your key points, pause and invite questions or feedback to encourage a two-way conversation. By making room for their voices, you create a balanced dialogue that often leads to more meaningful investor engagement.
2. Telling Instead of Showing
Describing a business’s potential is common, but “telling” alone can lack the impact that investors look for. When founders rely too heavily on projections or hypotheticals, investors are left with little evidence of current traction.
Solution: Use Real-World Examples
Show your progress with specific data points or examples of success. If you’ve secured notable clients or achieved a significant milestone, highlight these achievements to demonstrate tangible results. When pitching my own fund, the A.R.I. Senior Secured Growth Credit Fund, I found that showcasing our executed deals made investors far more confident in our future potential than anything else. This approach turns abstract promises into concrete proof.
3. Not Listening Closely to Investor Questions
Given the pressure of pitching, founders sometimes respond to investor questions with what they want to say rather than answering what the investor is asking. This can make investors feel unheard and their questions unmet.
Solution: Listen, Clarify, and Respond Directly
When an investor asks a question, listen very carefully and, if needed, ask for clarification. Respond specifically to what they asked, without veering off track. This not only respects their time but also builds trust by showing you’re attentive to their concerns. Clear, direct answers demonstrate that you can communicate effectively and are committed to a straightforward, open conversation.
4. Not Being Fully Prepared for Investor Questions
Even when founders listen carefully, they can stumble by not fully preparing for common investor questions. This can make them appear less confident or less informed about their own business.
Solution: Anticipate and Practice
To avoid this mistake, anticipate the kinds of questions investors typically ask, such as inquiries about the team, business model, financial projections, and competitive landscape. Practice answering these questions clearly and concisely with a mentor or advisor. This preparation shows investors that you’ve thought through every aspect of your business and can address concerns on the spot.
5. Overcomplicating the Message
Explaining a business in overly complex terms or technical jargon can make it hard for investors to follow. Founders sometimes assume that detailed explanations showcase expertise, but they can often obscure the message.
Solution: Keep It Simple
Present your business in a way that’s accessible to everyone, even someone without specialized knowledge. As a rule of thumb, if your message wouldn’t resonate with a 10th grader, simplify it until it would. A relatable analogy, like “Uber is just a taxi you can schedule with your phone,” helps investors quickly understand what you do. This clarity makes your pitch memorable and more likely to stick with investors.
6. Focusing Solely on the Business and Not the People
Founders sometimes overlook the importance of building a personal connection with investors. By focusing exclusively on their ideas, numbers and projections, they miss the chance to establish trust through a shared rapport.
Solution: Prioritize Personal Connection
Take time to connect with investors personally. Show that you value the relationship by finding common ground, whether through shared interests, values or backgrounds. A strong personal connection often enhances investor trust and sets a foundation for a more collaborative partnership. Remember, investors aren’t only backing the business; they’re also backing you as the founder. Somewhat paradoxically, the less you talk about business, the more business will wind up getting done.
7. Pushing for a Final Commitment Too Soon
Some founders enter a pitch aiming for an immediate investment decision. Although wanting a fast close is natural, this attitude can make investors feel pressured and turn a promising conversation into a dead end.
Solution: Focus on Securing the Next Meeting
In initial pitches, aim to keep the conversation going by securing a follow-up meeting rather than pressing for a commitment. Each meeting should move the relationship forward, gradually building confidence. This incremental approach allows investors time to evaluate and increases your chances of a successful close.
8. Not Following Up After the Pitch
After a solid pitch, some founders overlook an effective and timely follow-up, missing the chance to reinforce their message and stay top-of-mind.
Solution: Send a Thoughtful Follow-Up Email
After the pitch, send a thank-you email to the investors, addressing any questions or points of interest that came up during the meeting. If possible, include any additional materials or data that might support your pitch further. As the movie Glengarry Glen Ross famously put it: “ABC: Always Be Closing.” A successful pitch is only the beginning of a continual relationship, and thoughtful follow-up shows investors that you’re committed to a long-term partnership.
Pitch Smarter to Win
By making these adjustments, founders can avoid common pitfalls and deliver a pitch that resonates. Reducing talk time, showcasing real results, listening actively, simplifying the message, building personal rapport, and focusing on the next step all contribute to a memorable and effective pitch. Investors gravitate toward clear ideas, trustworthy founders, and businesses grounded in real-world progress. By implementing these strategies, founders can transform their pitches, ensuring each investor interaction fosters trust, connection, and confidence. The investments will soon follow.
