At this point in the presentation, it should be increasingly apparent whether or not the investor is on board and liking what they have heard so far. Also, for better or worse, you have made your first impression and are now onto showing your deeper knowledge of the market opportunity. Seek feedback and buy-in, and search for any unanswered concerns that may be lingering issues for the investor. This is an important slide and you need to make sure you have buy-in before moving on.
You can ask a very good question to confirm that an investor is on the same page as you: “Do these market assumptions seem reasonable?” If the answer you receive is anything other than a solid yes, do not move on without probing further with follow-up questions such as: “What changes would you suggest?” or “Is there any follow-up data that I can provide?” At this point in my firm’s workshops, I sometimes get the following question: “But Paul, I have only 20 minutes to give my pitch. Shouldn’t I just move on and make sure I cover all my 12 slides rather than get bogged down on a couple of slides?” The answer is emphatically “No.” Your first and main objective is to establish your personal credibility with the investor. If you succeed, you will likely have a shot at a follow-up meeting where you can cover other details.
If you miss picking up on a disconnect that develops during the presentation, you will not only not get a follow-up meeting, but you will likely wonder what went wrong and repeat the same mistake with other investors.
