How do you create urgency in your pitch to potential investors?

When you pitch to potential investors, you want to convince them that your opportunity is worth their time and money. But how do you make them feel that they need to act fast and not miss out on a great deal? Creating urgency in your pitch is a crucial skill that can help you close more deals and secure more funding. Here are some tips on how to do it effectively.

1 Highlight the problem

The first step to create urgency is to show the investors how big and urgent the problem is that your solution solves. You want to demonstrate that there is a clear and compelling need for your product or service, and that the market is ready and willing to pay for it. Use data, stories, and testimonials to illustrate the pain points of your target customers and how your solution alleviates them. Make the investors feel the problem as if it were their own, and show them how much value they can create by solving it.

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André Araújo

Mentor Financeiro
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É importante deixar claro o objetivo, que é ajudar o cliente. Ele será o maior beneficiado. Porém, só há negócio quando se tem o nível de consciência necessário para que se perceba que existe um problema e que ele é grave. Caso contrário, você estará deixando o cliente ignorante e sem acesso a sua solução.

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Paras Doda

Investment Banking | LinkedIn Top Voice'24 | Pitch Decks | Financial Modeling | All Things Finance | Venture Capital | Private Equity
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Identify the Problem: Clearly state the issue your product/service solves. Highlight Impact: Show how big the problem is and who it affects. Emphasize Urgency: Explain why solving it now is crucial. For instance, consider a pitch about a water filtration system: "The global water crisis is huge. Over 2 billion people lack access to clean water, leading to diseases and deaths. Our filtration system can save lives immediately. Without it, the crisis worsens."

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2 Show the traction

The second step to create urgency is to show the investors how much traction you have already achieved with your solution. You want to prove that you have a viable and scalable business model, and that you have validated your product-market fit. Use metrics, milestones, and feedback to showcase your growth, revenue, retention, and customer satisfaction. Make the investors see that you have a strong track record and a competitive edge, and that you have a clear vision and strategy for the future.

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Paras Doda

Investment Banking | LinkedIn Top Voice'24 | Pitch Decks | Financial Modeling | All Things Finance | Venture Capital | Private Equity
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Highlight Progress: Show growth numbers like user sign-ups or sales increase. Time Sensitivity: Share upcoming milestones or limited-time opportunities. Social Proof: Include testimonials or partnerships to validate interest. For example, if you have a tech startup, you might say, "We gained 500 new users in the last month, and our special partnership offer ends in two weeks. Investors, this traction shows we're on a rapid upward trajectory that's time-sensitive."

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André Araújo

Mentor Financeiro
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Daí, uma vez que o problema está claro na mente da pessoa, é hora de mostrar a solução, o seu produto e o quanto ele tem ajudado outras pessoas em condições similares, alcançarem os resultados que a pessoa também deseja. Seja a solução óbvia para o problema existente.

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3 Present the opportunity

The third step to create urgency is to present the opportunity that your solution offers to the investors. You want to highlight the size and potential of your market, and the gap that your solution fills. You also want to show the competitive landscape and how your solution differentiates from others. Use projections, scenarios, and benchmarks to estimate your market share, profitability, and return on investment. Make the investors feel that your opportunity is rare and attractive, and that they have a chance to be part of something big and impactful.

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André Araújo

Mentor Financeiro
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Oportunidade = estar no lugar certo na hora certa. O momento é agora, pois a decisão é sempre emocional. Lembre-se sempre que se o produto é realmente bom, quem compra ganha mais do que quem vende, então não existe pressão, existe é ajudar a pessoa a tomar a melhor decisão para a sua própria vida.

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4 Create scarcity

The fourth step to create urgency is to create scarcity in your pitch. You want to make the investors feel that they have a limited time and space to invest in your opportunity, and that they might lose it if they don't act fast. You can do this by mentioning deadlines, milestones, or events that require immediate action, such as product launches, customer acquisitions, or partnerships. You can also do this by mentioning other interested parties, such as customers, partners, or investors, that are already on board or in talks with you. Make the investors feel that your opportunity is in high demand and low supply, and that they need to secure their spot before it's too late.

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André Araújo

Mentor Financeiro
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O ser humano é procrastinador por natureza, logo se não tiver algo que o faça tomar a decisão naquele momento ele vai tomar a decisão depois. Só que depois a vida atropela, o impacto emocional diminui e é bem provável que ele siga o padrão procrastinador que tem. Boas decisões se tomam com ação. Fazendo o que precisa ser feito o mais rápido possível.

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5 Call to action

The fifth step to create urgency is to call the investors to action. You want to make them take the next step in the investment process, whether it's scheduling a meeting, signing a term sheet, or wiring the funds. You need to be clear, specific, and confident in your ask, and explain what you expect from them and what they can expect from you. You also need to follow up promptly and consistently, and keep them engaged and updated until the deal is closed. Make the investors feel that you are ready and eager to work with them, and that they can trust you and your solution.

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André Araújo

Mentor Financeiro
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Uma boa dica é fazer o CTA direcionando a resposta, de maneira que não fique aberto para um não. Uma vez que você já aumentou o nível de consciência do cliente, ele sabe que precisa resolver aquilo e você é a solução, é preciso aproveitar o momento e fazer com que haja um compromisso financeiro naquele momento. Caso contrário, a vida vai atropelar e aquele problema vai se tornar menos urgente e, na mente do cliente, passível de se resolver depois.

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6 Avoid pitfalls

The sixth and final step to create urgency is to avoid pitfalls that can undermine your pitch. You want to avoid being too pushy, desperate, or dishonest in your pitch, as this can damage your credibility and reputation. You also want to avoid being too vague, unrealistic, or unprepared in your pitch, as this can raise doubts and questions in the investors' minds. You need to balance your urgency with your professionalism, integrity, and competence, and show the investors that you are not only a great opportunity, but also a great partner. Make the investors feel that you respect their time and money, and that you value their feedback and relationship.

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