Forums: Discussions for entrepreneurs and small business.

I am not sure what to say about this pitch. It`s too long for an elevator ride. How about this? "I work in computer graphics and I`ve developed some unique technology that I`d like to patent. Would you be interested in a short sit down?" I think that`s a great elevator pitch.

I dunno...from my reading, an elevator pitch allows for 1 minute of speaking. The above is really good, and gets the point across right quick! I`m only saying it can be longer, if there`s something useful and helpful to add. :-)

Less is more. With many things. Sex, food, words.

Perhaps Cookie has a point, more concentrated is good. But you have a full minute to fill and your phrase could be used as an introductory phrase very well, but then what?

LOL!! What`re you an abstinence advocate? :-)

For CraigL.

I advocate abstinence from abstinence.

For TomSawyer.

The job of an elevator pitch is to get someone`s attention, catch their interest, etc. It doesn`t need to do anything more. If you have a sit down meeting, bring a fact sheet with your information and be prepared to answer questions. If my version of the elevator pitch leads to a few more questions, have prepared responses. For example, the investor might ask "Why is your technology unique?" Your response could be something like "Our rendering engine implements a complex technology in real-time." The idea here is concision, precision, simplificity, focus. Your version of the elevator pitch contains many needless facts that will simply blur your message. From what I gather, most of the facts can be discussed later, assuming you get a sit down meeting. So use the most enticing message possible and bring that fact sheet to the meeting. You need the attention of potential investors; you don`t need to tell them everything about your career. There`s time for that later, assuming they agree to a sit down.

CookieMonster:

I am starting to think that for less than one minute situations and not only I really need to say basically: "what`s in it for the investor". Why would they be interested in who I am and what I do if not to benefit them, right?

So how about:

"Hi, my name is Tudor Tihan. I make video games. My company is going to become one of the best video game development and publishing companies in the world before December, 2012. I have the products, the technologies, and the smart people to handle that, and I am looking for a powerful investor that wants to ride on the next big thing. We are based in Romania and, while small, we have gotten a perfect rating on several outsourcing website. We are also about to release a game of our on with our local mobile phone operator and we are building the next 2 major games with our patentable game engines. Call me."

How`s this? Offensive? Phun? Smart? Childish?

No, you don`t have to worry about what`s in it for the investor in your one minute pitch. You have to get their attention. It`s marketing 101. You can supply all the relevant details during your sit down, assuming you get a sit down, which won`t happen unless you get their attention. Let me be clear: an elevator pitch has to get the attention of an investor. That`s it. That`s all. Period. And let me repeat myself again. You do not need to supply the investor with details during an elevator pitch. You just need to get their attention. You just need to get their attention. You just need to get their attention. You just need to get their attention. You can supply all the details later. You can supply all the details later.

Personally, if you came to me with a pitch that included "My company is going to become one of the best video game development and publishing companies in the world before December, 2012." I would think "that`s what they all say". In addition, I would stop listening after the first few words. However, the pitch I suggested would certainly hold my attention because it`s short enough for me to hold in my brain. A long elevator pitch won`t work. A detail-rich elevator pitch won`t work because people won`t pay attention or they won`t remember. You need something incredibly simple. Simple. Simple. Simple.

I`m not sure I`m agreeing with some of the advice you are getting. Passion, for example, is a wonderful quality, but as someone who does invest I wouldn`t invest just because someone was passionate.

First, the team. That`s what most experienced investors invest in. So, promote your team. Something like, we are an x person company working from the low cost environment of Rumania. We currently successfully handle xx projects each year, earning perfect quality ratings at (eLance, or wherever you get your work from.)

Second, the project. Something like you have: We now want to move from the low leverage business of providing programming services to developing our own software products. We have decided to move into game development.

Third, the market. As it happens, computer games are a huge worldwide market, and you don`t have any of that in there. You need something like, computer gaming is a fifteen billion dollar (or whatever the accurate number is) worldwide market, and continuing to grow rapidly. The launch of new gaming platforms such as the PS3 and wii create opportunities for new companies to enter the market. In addition, the mobile phone market alone is predicted to grow to xx billion by 2010. Find some Forrester data or the like on the net, and plug some of that into your pitch.

Fourth, the product. Something like, we have developed a mobile game that can go to market by Q1 2007 (or whatever is correct). We have started development on xx, xx, and xx with plans to launch them by 200?.

Fifth, use of proceeds. We are seeking $250,000. We will use this to cover development costs, and to fund a marketing campaign. (Or whatever else you intend to use the money for).

Sixth, economic potential. Something like, Games is a fairly high risk business, but even moderately successful titles generate a huge ROI. A mediocre success (how many copies sold?) gets us xx return; a monster success at the Sims or Grand Theft Auto level generates ROI at a level somewhere between unconscionable and inconceivable. With multiple titles in the works and the advantage of a low cost production team, we believe we can deliver ROI of xx or better to investors by 2012.

While it matters that you are enthusiastic about what you do, I personally would rather invest in someone who has demonstrated professional competence and has a crisp, businesslike presentation than in someone who emotes all over me.

In terms of the merits of your plan, I`m prepared to believe you can write the games. My question would be how you get visibility and distribution in a crowded market. What`s your marketing plan? Who are your customers (e.g, end users, mobile phone companies, or what?) How do you reach them? How do you go from a pile of code to a branded, successfully marketed product that throws off some money?

I also would want to know how I get my money out. While it`s good that Rumania is low cost, it`s a bit exotic to me as an investment environment, and I`m not sure how a company like yours gets to a liquidation event in your country. If I recall correctly, Rumania is about to come into the EU, and even if that is not part of the elevator pitch it might matter if events progress in terms of providing some assurance of business regularity.

You are right to want to avoid the lumber barons hoping to impress junior, and preferring to focus on quality angels. Dumb money keeps smart money away, and you don`t want to get into that fix.

Yes, I`ve been thinking the same, I`d much rather take the smart investors` money as I would need their business advice as well, for the American market, at least.

So I`ve been preparing a new pitch, with the passion restricted to the high energy in my voice, rather than the words:

"We are a highly rated IT outsourcing provider focusing on video games. We have just launched our first own product, a wireless game, in distribution with a local cellphone operator. The total video games market in 2005 exceeded 27 billion dollars worldwide and it is expected to grow to 33 billion in 2010. The competition is strong, but we believe that we can do better than the average company as we have identified several key business and technology issues that we can shine at. We have 2 years of golden market experience in IT, with dozens of satisfied clients and high ratings and awards. My advisory team contains the former director of my city`s Registry of Commerce and will contain a Marketing Director from a large IT company that has expressed her desire to join us. I personally have 11 years of professional software development experience, all along working towards founding a global video game development business. My company is very small but has been profitable for the past 18 months. I am requesting 250,000 USD for launching 6 mobile games and 1 PC game worldwide within the next 12 months via phone operators and both online and regular PC publishers, and for securing 2 game related patents. We have already discussed a licensing agreement for the hardware patent with a large American company. In total, we require 2 milion dollars to create our target properties, including PC and console games, for a ROI of over 250% within 5 years. The exit strategy for the investor is based on dividends, but doesn`t exclude a company sale or IPO as opportunity may call for. Thank you for your time."

It`s growing to over a minute already :), but I find it worth the extra seconds.

About Romania, we have a pretty much western style law and business systems, otherwise, as you said, we wouldn`t be accepted in the European Union.

About the x person company, that`s my greatest weakness. We are essentially a 2 person garage level company, both my clients and my collaborators are on the other side of the computer screen, via internet. I am sure this will scare off most of my investors, regardless of the results.

In any case, I`ve put online the new website, with the games and made applications described in there: http://ZamolxisInteractive.com.

Regards,
Tudor