Andrew Gershfeld
Around May 2020, nearly everything moved online, and investment pitches were among the first to do so.
The entire milieu around startup funding shifted overnight. For many companies doing their business online, the move to online wasn’t a shock. However, a majority of VC firms only used an offline approach.
It’s impossible for founders to “read the room” when pitching online, which puts them at a severe disadvantage. Research by UCL School of Management professor Chia-Jung Tsay found that people could reliably predict which entrepreneurs would get funded based solely on founders’ physical cues like body language, facial expressions and stage presence.
In essence, this new pitching model presents a new problem for founders: It’s critical to keep investors’ attention, but it’s also more challenging than ever before. This is where the “teaser trailer” can work in a startup’s favor.
At Flint Capital, we listen to around 1,500 online pitches per year. After hearing 15,000 pitches in 10 years, I have some perspective on how to effectively create and leverage teasers that founders may find valuable when they are pitching online.
Why is a teaser so important?
It primes your contact for the big presentation.
Every good pitch starts before the pitch. It’s always preferable to have a trusted contact, such as another investor or portfolio company founder, who can recommend you to the investors before you meet them.
In my experience, about 85% of closed deals result from a pitch from a recommended founder. This means that a first introduction should involve the founder giving their contact this teaser to whet the investors’ appetites.
You can think of this as an extension of your “elevator pitch.” Since we’re not getting the same in-person meeting opportunities, this is how founders can hook investors’ attention.
It gives you a proactive part in the pitching process
In most cases, investors will ask you for an overview of your idea before the first online pitch call happens. Putting together a teaser trailer ahead of time gives you the chance to shine in your first impression to VCs.
Add things that pique investors’ interest and make them wonder how you can make this idea work. Leave them thinking things like, “This is an unusual number. I wonder how they came to this conclusion?” Be careful not to over-dramatize, though, because this can be off-putting.
It gives you the sales advantage of steadily building interest
Remember the adage of sales: “You have 30 seconds to buy three minutes.”
If you can sell an investor on your idea in 30 seconds, you’ve earned their attention for about three minutes. Then your job is to leverage those three minutes to buy enough interest for the full 30-minute presentation.
Pitches are their own version of sales. You want us to buy into your idea, so you have to sell it. It’s up to founders to keep warming up investors’ interest throughout the pitch, and a teaser trailer is a perfect way to begin.
The five essential elements of a teaser trailer
In my experience, every excellent teaser trailer includes the following five elements:
A maximum of 10 slides
Distill your information until you get no more than 10 impactful (and uncrowded) slides. Anything longer than this will not hold an investor’s attention long enough to get your point across.
A simple, harmonious color scheme
Stick to a maximum of three colors, and be sure they are easy on the eyes. Look up harmonious color palettes online if you’re unsure about what looks good.
Accessible, amateur-friendly material
Show your teaser to a friend or family member, preferably someone outside the industry. If they can grasp your idea, you’re on the right track. If not, simplify your information until they can.
This might take a few tries, but it’s probably one of the most important elements of your teaser. Remember that you will likely not be speaking to a room full of industry experts. That means as soon as you add in jargon or overly niche knowledge, you will lose your audience.
One or two impressive, relevant figures
Don’t over-dramatize, but carefully choose one or two of the most interesting and precise data points to pique interest.
As an example, a startup in the healthcare field might add something specific and intriguing such as, “80% of household healthcare decisions are made by women.”
Information that primes more questions
At the end of your presentation, investors should be intrigued and wondering how you plan to make your idea work. Make sure you add enough information to prevent confusion without overwhelming them with data.
A polished, professional feel
This isn’t the time to go off-script or show how charismatic and edgy you are. You’re not trying to stand out with flashy animations or experimental tech right now. Stick to a recognizable slide-deck format that investors are familiar with.
How to structure your teaser trailer
I mentioned above that your teaser should contain a maximum of 10 slides. Here’s a template for what to include in each slide for the best impact:
The cover
This is your “short positioning.”
The team
Briefly outline who investors will be talking to. Don’t worry about including team members who are not part of your larger presentation.
Company purpose
Why does your company exist, and why should investors care about your idea?
The problem
Tell investors about the problem your brand will solve. Don’t include solutions here, and remember to add specific, relevant data to outline the issue.
The solution
Now, outline how your brand is uniquely positioned to solve the problem you just pointed out. Again, include intriguing, specific information.
Use cases
In this slide, offer real-life examples of the problem your target demographic faces. Make it as genuine and relatable as possible.
Why now?
Explain why you believe this is the right time for your business to enter the market and solve this problem.
Market size and segmentation
This slide should contain bullet points with specific details regarding your target markets and customer segmentation.
Competition
How does the competitive landscape look? Include direct and indirect competitors as well as any potential substitutes. This shows the potential of your startup, and it also signals that you’re serious enough to research the competition.
Business model
Briefly outline your market strategy. Include information about unit economics, network effects, barriers of entry and any other data relevant to your sector.
Results and traction
Show investors what you have achieved so far. Tangible and intangible milestones are both important here, so be thorough and exact. Investors want to know right away that you’re results-oriented.
Goals
Clearly state your deliverables for this round. Investors like to see precise information here.
Insider tips for creating a memorable teaser trailer
Make it self-explanatory
Your teaser shouldn’t need a narrator. If investors can’t understand the teaser without commentary, it needs more work.
Remember, a presentation implies there is a presenter; a teaser does not. It should be self-sufficient.
Consider the logistics
The role of a teaser is far more public than your complete presentation. It should be the kind of thing that anyone can safely share through third parties.
Think of it like a book jacket. It shouldn’t “give away” anything significant about the plot, but it should be able to be perused and passed around to create interest and excitement for anyone who reads it.
Don’t stray into “try-hard” territory. Founders often get the idea that they need to “be different and stand out” to ensure that they hook investors’ interest. It’s understandable, especially when it feels like the market is saturated with startups, but my advice is to resist the urge.
With both the teaser and the presentation, it’s best to stick to formats investors are familiar with. Hook them with your ideas and data, not your flashy, experimental teaser trailer format. The time to impress investors with your innovation and charisma will come later, after you have established a professional rapport with them.
In almost every case, trying too hard to stand out will leave a sour taste in investors’ mouths.
You only get one shot online
Even in this post-pandemic world, it’s likely that more investment firms will continue with online-only or hybrid pitch models. This means that founders can no longer rely on a purely in-person connection to win over investors.
In my opinion, a well-crafted teaser trailer is the perfect first step toward developing a positive relationship. It forces founders to quantify and distill the essential parts of their pitch in black and white. This creates a more compelling hook and lays the foundation for a better, more successful presentation.
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