Source: Big Think
- Lumina Foundation is partnering with Big Think to unearth the next large-scale, rapid innovation in post-high school education.
- To craft a good social venture pitch, pay attention to these 9 critical areas.
Having a clear and concise social venture pitch can be the difference between success and failure.
In my time advising social venture companies, I’ve met some impressive entrepreneurs who simply lacked the ability to raise funds, and I’ve also met a few with mediocre solutions who had the advantage of access to a great sales team. The great sales team always wins. Mastering a good pitch to investors is critical to success.
There are ten critical areas for you to include in your pitch. For teaching purposes, I’ve imagined an education social venture to use as an example to make the point crystal clear. These steps will work well for both for-profit and nonprofit social ventures.
Step 1: Headline
Tell the listener in a succinct way what you are talking about. This is the most overlooked element of most pitches. Social entrepreneurs usually just jump right in to their model, leading the investor to have to guess what they’re listening to. A headline statement will frame what you are about to say, allowing the listener to know where this is going.
A good headline gives your investor reasons they should care. A good headline gets investors’ attention, for example:
“Thanks for your interest. I want to share our adult education solution that provides adults with simple navigation tools in order to move through the complicated American education system.”
Step 2: Introduction
An introduction briefly tells them who you are and the mission of your venture, for example:
“Hi, I’m Sally Jones and I’m the founder of Education Solutions. We match adults without a tradition high school degree to jobs that transform their lives for the better.”
Step 3: The Problem
Immediately state the problem you’re solving and the opportunity it presents. State it concisely and include numbers if you can. For example:
“Last year, 7 million jobs went unfilled in America. That very same year, 95 million workers reported that they couldn’t find meaningful work. This problem has been growing over the past ten years, leaving all sides frustrated – unemployed workers feel depressed facing a loss of dignity which cost taxpayers $2.7 trillion. This gap between those seeking jobs and needing jobs needs to be bridged.”
Step 4: System Solution
Impact investors want to fund programs that solve problems and don’t simply put a Band-Aid on the issue. Present your solution in terms of systems change, not just symptom treatment. Unlike a VC pitch, you’ll have to show how your venture can provide both financial return and meaningful social impact. For example:
“Our model provides skill matching, coaching and cutting edge credentialing to our adult clients, many of whom are homeless. We bring adult workers out of unemployment into a job that will enable them with dignity and respect for a lifetime. Last year, we saved our city $1M by adding new jobs, helping new workers add to the local economy rather than depending on charity.”
Step 5: Collaboration
Unlike a traditional VC pitch, where you must identify and beat the competition, a social venture must show command of the field of potential collaborators, such as government, nonprofits, other social ventures, while also demonstrating a knowledge of the ecosystem’s strengths and weaknesses. For example:
“While programs to provide adult learning, such as GRE programs, have existed for years, few meet the needs of the gig-tech economy. Our model builds upon existing education networks through smart phone technology and matches workers with jobs that need their skills, allowing for matches to stick. Also, we’re convinced our offering of a wrap-around service is what’s needed for sustainable change in adult education.”
Step 6: Sustainable
Before an impact investor gives to you today, they’ll consider whether you’ll be back in six months asking for more. They are listening to hear if your model generates a sustainable funding stream. How does…
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