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Sep. 28, 2021 by Maureen Ballatori, Founder + CEO, 29 Design Studio Getting that first significant round of Series A funding from venture capital or private equity firm is not rocket science. But it is an art and discipline that requires the right positioning and pitching strategies. Most critically, if you are a company in the startup or seed stage, you need to tell a compelling story. We've seen that need, particularly among agtech companies that engage us to help create pitch decks. WHY YOU NEED A COMPELLING STORY Even though agtech is hot, the competition for money is fierce. Investors read or hear hundreds of pitches, often ones that are great ideas. But if your story does not flow, is not clear, does not answer critical questions, and fails to pique the investor's interest immediately, then you will walk away with a firm "No." If you are lucky, you might get a "No, thank you. Come back when you have your pitch more baked." Why do pitches fail? Too often, agtech companies focus only on the tech part of the equation. They talk about how their technology works and how it was created. It often sounds like they are singing a love song about their innovation. But savvy investors want way more than that. They want a story that answers these ten questions: 1. What problem is your product or service solving? 2. Why is your solution better than what is out there? 3. What is the size of your market? 4. What have you discovered about your target customers? 5. How will you go to market, and what has worked so far? 6. What is your anticipated revenue, and where will it come from? 7. What are your costs? 8. How will you scale up? 9. How will your team lead you to success? 10. How will you use the funds you are requesting? That's a lot of information to convey in a short pitch! That's why you must create a compelling and coherent story. THREE BITS OF PRAGMATIC ADVICE Here are three things we urge you to consider as you create your food innovation story: Make it visual, but... Pitch decks are a carefully balanced mix of visuals and words. Often, a pitch deck will be passed among a group of investors to get feedback. The story must stand alone without your commentary. However, the vast majority of companies rely too heavily on words when a compelling visual can tell the story. This includes high-quality photography of your product. Make it flow... Tell your story in a sequence that is easy to understand. Starting with the challenge and then giving the solution is far more compelling than starting with an overview of your team. Make sure your go-to-market strategy ties into the financials. Clearly show how money raised is key to accomplishing your goals. Make it relevant.... You are not your audience. Your audience is the investor. They want to see how they will make money from the investment. They want to make sure you have a product or service that people will want to purchase. They want you to win so they can win. Show them how. CONSIDER OUTSIDE HELP We know startups are often strapped for cash, but one place you need to put resources is in a great pitch deck. As the founder of a start-up, you may be too close to your story to frame it in the right way for an investor. It may be helpful to engage a professional firm. Look for a company with a proven track record in creating winning pitches. In the past two years, we helped clients find success in the international Grow-NY Food and Agriculture competition. In 2020, Leep Foods, a regenerative grower of premium organic mushrooms, took home one of four third-place $250,000 prizes at the virtual summit. In 2019, RealEats Meals, a premium prepared meal delivery service, claimed the coveted first-place prize of $1 million, which has since led to additional seed funding for the company. We also worked with Combplex on their pitch deck for the 76West Clean Energy competition in 2020. The innovative company creating a farming ecosystem that sequesters more greenhouse gases by eliminating pests that threaten the health of honeybee hives took home a $500,000 award. About Maureen Ballatori and 29 Design Studio Maureen Ballatori founded the creative agency, 29 Design Studio in 2007. Her team works with clients around the United States in food, beverage, and agriculture. She is also a founding partner of Metro Collective, which unites shared spaces across Upstate New York. As a fierce advocate for agriculture, Maureen and her team have played a major role in supporting scaling companies in the ag ecosystem. In 2019 and in 2020, clients of Maureen's firm, 29 Design Studio took home big awards in the Grow-NY Food and Agriculture Competition totaling more than $1.2 million dollars. Maureen's advocacy for economic development includes ideating award-winning community-building campaigns and branding multiple economic development entities. She has also been published in Forbes on the topic of branding and economic development. Tweet |
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