Firstly, are you MAD? Pitching to an investor by telephone? Not a good idea! Your goal should always be to get a face-to-face meeting, but maybe the investor’s asked for the call as a way to screen you for that meeting. But it may not be, in the fast moving world of AngelList a few emails and a phone call might be all you need to get a committed investor. That was my experience, so here are my top tips for how to go about telephone pitching and get the best results.
Calls are shorter than meetings
Face to face meetings are usually scheduled for an hour. With a delayed start and early finish you can bank on getting about 40-45 minutes quality time. Calls are usually scheduled for 30 minutes, but you may only get 20 or 25 minutes. But as long as the investor doesn’t have something scheduled immediately afterwards, the call will often run on; just don’t count on it. So with less time available it’s critical to use less slides and get to the point quicker.
Make the call yourself
I think it’s better if you call the other party rather than ask them to call you. I suspect it’s the right etiquette, but the reason I do it is I think the call is far more likely to take place if the other person knows you are calling them. If they are calling you, and you’ve never spoken before, there is much more chance of you getting an email 5 minutes before the call saying “sorry about this but I’m going to have reschedule this”. No matter how annoying this can be it will happen… so graciously reschedule!
Double check times/dates
Self explanatory really. And if calling across timezones, don’t use your brain to work out the offset, use your calendar to do so. Despite checking and double checking it’s remarkably easy to f*ck this up, and it makes you look like really dumb if you get it wrong, especially if you call a mobile and catch someone eating their Frosted Flakes rather than sitting at their desk in the office. (Oh yes, I’ve done that!)
Call during daylight
I’ve done lots of calls from the UK to Silicon Valley, and I always try to schedule them for early morning Pacific time, so they are late afternoon for the UK. I prefer to do this because I find I’m much more alert and enthusiastic when the sun is shining outside. I’m not saying I won’t do a call at 10pm (I have), but I prefer not to. YMMV.
Phone or Skype?
I always use Skype to make the call because it’s cheap and I know my set up works great, but I prefer to call their phone number rather than do Skype to Skype. Even if the other person is using Skype, you never know in advance the quality of their set up. Will you be able to hear them properly? Will they be able to hear you? I’d rather call the investor on their office phone, using their DDI if at all possible. Landline phones are not shiny new technology and because of that they work reliably all the time. Skype doesn’t.
Go somewhere quiet
You want to hear and be heard clearly, so do yourself and the other person a favour and find a quiet room to make the call from. That means no kids screaming, no dogs barking, no baristas prepping a tall skinny latte in the background. Silence is golden.
Use a headset
This is all about your voice being heard clearly, but also helps with eliminating echo, and if you are somewhere with some background noise you must must must use a headset.
Sharing your screen
Don’t use Skype’s built in screen sharing capability… the image quality is terrible. Instead use Join.me, a free tool from LogMeIn. Great quality and really easy to set up.
I learnt these first 3 points from one of silicon valley’s top pitch trainers, Bill Joos, of Go To Market Consulting. (Bill is awesome, if you can work with him you should jump at the chance).
These points work whether face to face, or on the phone:
1. Double check how much time you have
Even though you’ve scheduled in advance, plans change, shit happens, so always double check at the start of the call how long the person has available for you.
2. Find out why the person took your call
Really important question which is nearly always very illuminating. “What attracted you to my startup?” But do remember to listen to what is said and take notes!
3. Ask “the” question
“What are the top three things you’d like to find out about my startup during this meeting?” Again, remember to listen and take notes so you can address these points.
4. Be expressive
A majority of communication is non-verbal, so by doing it over the phone you’re losing this. You have to make it up for it, so try and vary the tone of your voice, use expressive words and smile when you’re talking; it helps.
5. Leave gaps
Again, when not sitting opposite someone it’s harder to have a conversation that flows, but that’s your goal. So aim for a conversation rather than a presentation, and leave chances for them to interject. This can mean you might over-run, so in terms of content I’d suggest that you at cover the most important points early on, but it’s fine to leave them wanting more as that may get you the follow up meeting.
Finally, and just to reiterate, you want to avoid if at all possible having to pitch by phone, but it’s not all bad, it’s a lot more time efficient for you and your investor, and there’s certain things you can do when you are not face to face, like make use of notes and other materials so in some ways it’s less pressure. It’s also not a bad way of preparing and getting practise for a face-to-face pitch.
Good luck and let me know how you get on!