The inventor revealed one presentation strategy that impressed investors. A word of warning–this strategy takes courage and confidence to pull off. You’ll have to check your ego, but it will pay off.
Here’s the tip: Embrace your toughest critics and make them a part of your presentation.
Medical device manufacturing requires years of development, regulatory approvals, and failures along the way. The entrepreneur I met is an engineer who had invented a device to treat a particular type of heart disease. Most founders of medical devices invite physicians to join an advisory board to offer feedback along the way. This inventor did the same–but added a twist.
He showed a slide of his advisory board, which he divided into three groups. Physicians who enthusiastically supported the new therapy made up the first group. The second group of advisers hadn’t formed an opinion. The third bucket had one adviser–the most vocal critic of the therapy. Investors were invited to call the advisers–even the critic.
Poorly done pitches typically lack diligent research, especially in the area of competition or potential hurdles. Nothing turns off an investor more than to hear an entrepreneur say, “There’s no real competition in the space.” There’s always competition and there will always be hurdles. Investors want to know why your company will ultimately win, despite the roadblocks.
Bringing up your critics and potential problems before your audience does has three benefits.
1. It shows confidence.
There’s nothing wrong with presenting your idea in a positive light. If you don’t believe in your idea, no one else will. All too often, however, investors raise critical questions during the Q&A. If a communicator hasn’t addressed a potential problem in the body of the presentation, it looks like they’re hiding critical information or they’re not even aware of the criticism. Either way, it doesn’t help to build trust with potential investors.
If you know that your idea has critics, bring it up yourself, followed by an explanation of how you’re addressing their criticism.
2. It reflects an open mind.
Early-stage investors need to be captivated by an idea and its potential, but they also want to feel confident that the founder is flexible enough to pivot if market conditions change. They want to see a founder who is receptive to feedback and takes action to correct problems.
Early-stage investors aren’t always backing a product. In most cases, they’re putting their money behind a person they believe in. Successful entrepreneurs are open to learning.
3. It demonstrates an obsession with the customer.
The most visionary entrepreneurs–from Steve Jobs to Jeff Bezos–have always been obsessed with the customer experience. They knew what customers loved about their products and what they hated.
From time to time, Steve Jobs would put up a slide that showed a quote from a disappointed customer or a bad product review. “We listened,” he would say. Then, Jobs would show the audience how the company had resolved the customer’s frustration.
It’s OK to call attention to your critics–as long as you have fixed the problem or have a solid plan to do so.
In the case of the medical-device inventor, a powerful section of his funding pitch showed a harsh quote from the critic followed by a second, more positive quote, after the physician’s criticism had been addressed. The combination proved to be irresistible to early-stage investors, who pumped nearly $17 million into the inventor’s company.
This strategy applies to nearly every pitch, whether you’re talking to investors, employees, or customers. You don’t need to seek out your toughest critic, but do address potential hurdles or negative feedback before someone else does. It’ll show that you’re confident, open-minded, and obsessed with pleasing your customers.