FundingUniverse.com now has about 1,000 angel investors in virtually every state. The company, which I helped found in early 2005, is holding its 5th speedpitching event today in Sandy, Utah. It has held events in 6 or more states and has plans to continue to expand.
I’ve attended several of these events representing the small fund we have at Provo Labs, as a potential investor.
The coaching and practice sessions have been extremely helpful. Imagine trying to get your entire business plan onto a 1-page summary that will be distributed. And then imagine being forced to tell your story in 4 minutes. That’s what all the entrepreneurs learn how to do.
After the 4 minute pitch, the investors get 3 minutes for Q&A. Then you go to the next table and give your pitch again. You do this 5 times before lunch, and then 5 times after lunch.
The goal is a followup meeting. The staff at FundingUniverse say that the vast majority of companies that have attended these meetings have had follow up meetings with the angel investors who heard their initial pitch.
One of my friends who has done two of these events said the most important advice he has is to memorize your pitch word for word. He and his co-presenters did this but the passion for their business still came through loud and clear.
A week after the February 2006 speedpitching event, he gave the pitch again to a strategic investor and raised $4.1 million. He credited going through the process of boiling down the company’s story into its very essence and memorizing it and giving it so many times for helping him close the deal.
I know 3 entrepreneurs who are presenting today, and I wish them all well.
I’m going to invite the staff from FundingUniverse to do some training for the 30+ companies at Provo Labs Academy, since many of them will one day seek funding from angel investors. Hopefully we’ll get that scheduled in the next week or two.