How to Create a 5-Minute Video Pitch That Will Impress Investors

Nail your next funding round with a 5-minute video pitch that grabs investors' attention and takes your startup to the next level

7
 min. read
November 19, 2024
How to Create a 5-Minute Video Pitch That Will Impress Investors

In today's fast-paced startup ecosystem, your ability to convey your business vision concisely and effectively can make or break your chances of securing funding. Investors often have limited time, and creating a compelling 5-minute video pitch is a crucial skill for any founder aiming to raise startup funding, attract angel investors, or connect with venture capital firms. Here’s your ultimate guide to creating a 5-minute pitch that works.

Why a Video Pitch?

Video pitches are becoming increasingly popular as they allow founders to showcase their ideas and personalities while giving investors a snapshot of the business. These pitches are also highly shareable, meaning your idea can easily reach more potential investors.

In this guide, we’ll walk you through how to create an investor pitch that captures attention, conveys your vision, and leaves investors wanting more. We’ll break it down into clear steps to ensure your 5-minute video makes a lasting impression.

1. Nail the Opening (30 Seconds)

The first few seconds of your video are critical. Statistics show that if you don’t grab the viewer’s attention in the first 30 seconds, they might lose interest. Start with a powerful hook that conveys the problem your startup solves.

Example:
“Every year, 10 million trees are destroyed by the wallpaper industry. Our company, WallsTech, has developed a sustainable, digital alternative that could save these trees and revolutionize interior design.”

Make sure your opening clearly outlines the problem and hints at your solution. Use real-world data or an impactful story to drive the message home. This approach not only captures attention but also creates an emotional connection with your viewers, which is essential when pitching to angel investors or venture capitalists.

2. Describe the Problem & Solution (1 Minute)

After the hook, dive into more detail about the problem and your unique solution. Avoid using technical jargon; instead, focus on making your message accessible. Remember, you’re trying to move investors from curiosity to interest.

Tips:

  • Explain the problem with clear, relatable language.
  • Introduce your product/service and its unique selling points.
  • Avoid going into too much technical detail — this can come later in follow-up meetings.

Example:
“Our digital wallpaper technology offers endless design possibilities, reduces waste, and provides a cost-effective solution for homeowners and businesses alike. Through our app, users can select, customize, and apply wallpapers directly to their walls — all without a single tree being cut down.”

This section should make investors think, This is a real problem, and this startup has an innovative solution.

3. Market Opportunity (1 Minute)

Investors want to know if there’s a big enough market for your product. In this minute, briefly explain the size of the market and your target audience. Be specific, but concise.

Example:
“The global wallpaper industry is worth over $1.6 billion annually, and with eco-conscious consumer demand rising, the market is ripe for disruption. Our solution not only targets the wallpaper sector but also the $100 billion paint industry, providing us with vast growth potential.”

Pro Tip: Use visual aids like charts or graphics to represent market size and growth trends. Visual data sticks in the mind longer than spoken numbers.

4. Explain the Business Model (1 Minute)

Now, explain how you’ll make money. Is your model subscription-based? Do you have tiered pricing? Keep this section simple and focused on profitability. Investors are primarily interested in whether your business can scale.

Example:
“We operate on a tiered SaaS model, charging customers a subscription fee for access to our wallpaper library. With over 7,300 designs available, users pay a monthly fee for unlimited downloads. We also partner with designers and DIY stores to expand our reach through strategic distribution channels.”

You need to assure investors that your business model is viable and scalable, providing them with a clear path to return on investment (ROI).

5. The Team (45 Seconds)

Investors invest in people, not just ideas. In under a minute, highlight the key players in your team and their relevant expertise. You don’t need to introduce everyone — focus on the leaders and anyone crucial to the success of your startup.

Example:
“Our team combines over 30 years of experience in technology, design, and distribution. I’m Martin, the founder, with a background in large-scale manufacturing and distribution. Sarah, our tech lead, developed the core app technology. We’re seeking funding to hire a marketing director who will spearhead our customer acquisition strategy.”

Pro Tip: Emphasize how your team’s collective expertise makes you the right group to solve the problem and scale the business.

6. The Ask and Call to Action (45 Seconds)

End your pitch with a clear ask. How much are you raising? What will the funds be used for? Be direct and precise, while also emphasizing the potential returns for the investor.

Example:
“We are raising £300,000 in exchange for 11% equity, with SEIS and EIS tax relief already in place. The funds will primarily be used for marketing and expanding our sales team. With your support, we aim to capture 5% of the UK market within the next 24 months, offering potential returns of 15-25x.”

Make sure your call to action invites investors to take the next step. This could be scheduling a follow-up meeting or offering a time for a due diligence session.

Key Takeaways for Creating a Winning 5-Minute Video Pitch:

  • Engage quickly: Hook investors in the first 30 seconds.
  • Solve a problem: Clearly articulate the problem and how your solution is unique.
  • Show market potential: Investors want to see that there’s a large and growing market.
  • Explain your business model: Make sure your revenue model is clear and scalable.
  • Highlight your team: Investors are betting on your ability to execute.
  • Be clear with your ask: Don’t leave investors guessing — tell them how much you need and why.

Final Thoughts

Creating a powerful 5-minute video pitch is a blend of storytelling and strategy. By focusing on clarity, conciseness, and impact, you’ll increase your chances of securing that all-important next meeting with investors. The key is to leave them excited and wanting more. Keep practicing, refining, and keep in mind — it’s you they are investing in, not just your business idea.

Need a bit more help with crafting your pitch? Check out our blog, The Ultimate Guide to Writing a Winning Startup Pitch Deck, for detailed tips and insights. And remember, when you sign up on ThatRound, you’ll gain access to a variety of fundraising services, including pitch deck consulting, available through platform Partners. Just sign up, find the right Partner, and get started on perfecting your deck!