In the previous post, we discussed Top 4 Components of a core Messaging Document and how to pitch journalists by Tap2Pay example.
Task for this week: Pitches for Investors. Why Investors relations, IR is a part of PR?
Investor relations are an important part of your audience, that is why communication with them is a part of common PR strategy.
In order to convince potential investors that they should work with you, you need to give them the accurate information about your differentiator, key value, and business potential. Existing investors want to be informed about the current progress and your short-term plans.
Messaging for Investor
What is the main difference of messages sent to journalists and messages sent to investors?
A journalist is looking for interesting news. It does not matter how this news affects the success of your business. He chooses the loudest of the hundreds of pitches, the news that catches the eye at first sight. It is important for a journalist to write about you once, and what happens next is not interesting for him.
Investors think differently. Looking through all the pitches, it’s easier for an investor to decide what he does not like and what is not worth his time. Most of all, investors are afraid of missing something worthwhile. Therefore, if he has any doubts, the chance that he will ask his questions is higher than in the case of a journalist. Investor thinks about a long time perspective. If he decides to work with you, then this work lasts for many years.
That is why, during communication with investors it’s important to leave an intrigue and provoke a conversation because in conversation you can use all your personal charm and a compelling speech – all things that a messaging document can’t convey.
What does a message for investors consist of? What documents should always be ready?
– Executive summary (one-pager)
– Pitch Deck
Slide 1 – Logo, name, and key phrase.
– Tap2Pay. Instant and Secure payments in your chat.
Slide 2 – The Problem
The uniqueness of Tap2Pay is that it solves the problem immediately for both sides of the market: sellers and buyers. In order to arrange logical accents, you can divide this information into two slides or place them side by side: one follows from the other.
1) For customers
– Purchasing on a mobile device is slow and not secure
– Payment pages are not mobile optimized
– Consumers must fill out annoying forms and share personal information
– Online identity is broken – need to prove you are a human being
– Additional downloads and installs are required
2) For merchants
– Merchants are losing money
– Customers abandon carts
– Impulse to buy is not converted
– The selling is not done where the customer is – chats and messengers
Slide 3 – Solution
1) For customers
– Buy on any device: a phone, a tablet or a computer
– Buy on any platform:
- A website – just enter the mobile phone and click “Buy”;
- A chat or messenger – click on the buy link sent directly to the conversation;
- Offline – using QR codes.
– No additional installs
2) For merchants
Use customers’ social channels as your selling channels:
– Easy integration for the vendor
– Access to new customers via instant checkout
– Seller’s dashboard:
- Instantly see unfinished payments
- Chat directly with the customers that abandoned a cart
Slide 4 – Market Volume
Investors look at your presentation with one thought in mind: what kind of repayment he can potentially get on the invested money? Convince him that the problem you are working on has a large (and, importantly, growing) market.
– Tap2pay works on websites, in mobile apps and offline. Here is a snapshot of social commerce markets
– US social commerce revenue was $14B in 2015
– Worldwide social commerce reached $30B in 2015
– Social commerce is growing faster than e-commerce overall: In 2014 social grew 26% vs 16% for the whole e-commerce market
Slide 5 – Your competitors and your differentiation
We discussed it in the previous post: Marketing Competitor Analysis.
Slide 6 – Business model
– Tap2Pay charges fixed percentage fee on transactions.
– Tap2Pay client verticals include E-Commerce vendors; Online professional services; SMBs with online sales; Event organizers
Slide 7 – Success Traction (Your achievements)
– Venture Day Minsk
– Increased the sale conversion rate up to 21%;
– Tap2pay improved conversion rate is 153% better than the previous payment method for the event
Slide 8 – Team
– Eugene Palchevsky — Co-Founder, CEO. Ex-Developer, Product Manager, serial entrepreneur. Sold his first project in 2009.
– Alexander Shlyaev — Co-founder, CSO & COO. Serial entrepreneur.
– David Fastovich — Сo-founder & CBDO. Experienced network and security engineer, a serial entrepreneur in Israel.
– Avishay Jesse Segal — CMO. Israeli entrepreneur, experienced in marketing, sales, bizdev, PR and financial consulting.
Slide 9 – if you are looking for an investment, identify how much you need, how soon and what you are going to spend money for.
Finally, show your contacts and an invitation for further conversation.
If you have the opportunity to present yourself in person, most of these facts will not be duplicated on the slide, since you will say everything verbally. On the slide, in this case, there can be no more than a few words and visual confirmation of what you are talking about. Reading the text on the slide and listening to you at the same time is very difficult, so do not experiment with it.