Startup founders typically pitch their ideas to potential investors, hoping to find someone interested in investing in their business. Knowing how to communicate the vision and mission statements in these pitches effectively can be important for startups. Being able to tell a story when pitching your business can help relationships moving forward. Today, we will discuss what a vision and mission statement look like and some good and bad examples of what a startup might do when pitching to investors.

Communicating the Vision

What is a Vision and Mission Statement

First, let’s define a vision and mission statements. A vision statement describes what a company desires to achieve in the long run, typically in a time frame of five to 10 years, but it can be longer. The vision statement typically details a vision for the company in the future and helps set up the direction in which the company hopes to go in the time frame. On the other hand, a mission statement usually describes what a company does and its purpose. This statement refers to what the company does now and its strategy to continue in the short term.

Why is this Important?

The combination of mission and vision statements can help provide context about the business and allows investors to see the things that matter to the company. These statements can serve multiple purposes, both in guiding the management team to define and implement strategies that strengthen the company’s identity and achieve its goals. It also can help the investors, customers, and even the general public see why the business was created, what it is striving to achieve, and how the company works.

How to Communicate Effectively to Investors

In communicating with potential investors, the essential element of storytelling plays an important role. A startup investor may have all the right information to pitch, but the disconnect between the physical information and effectively communicating it to investors can be detrimental to the overall pitch.

Mastering Storytelling

Storytelling is not just about entertaining people or educating them, but rather it can be a powerful tool used to influence an audience. Startups may want to focus on storytelling to draw in potential investors. A strong story can help the startup build trust and credibility with potential investors by connecting on an emotional level. A startup’s story can tell investors why they should care about the business and how they could impact and benefit the company by being part of it.

Mastering the art of storytelling the mission and vision statements can be accomplished in a few ways. The startup may want to consider developing a clear and compelling narrative that revolves around the vision and mission statements. The startup may wish to take the investor on a “journey” by sharing personal anecdotes and showing how the company has made a difference already or how it is aligning with initiatives in the industry. It can also be important to remember the audience to which the startup is speaking, that way the story can be tailored to those investors.

Importance of a Cohesive Story

To have a strong and effective pitch to investors, the startup may want to remember that it is important to have a cohesive story. Using repetition and consistency in the pitch can help reinforce the message the startup is trying to get across and stick in investors’ minds. The cohesiveness and consistency can avoid confusion and contradiction allowing for credibility with investors.

Ways to Effectively Communicate Vision and Mission

There are many use cases for which a startup may want to communicate its vision. Elevator pitches, pitch decks, longer pitch presentations, websites, social media platforms, and even networking conversations can be avenues through which a startup communicates the mission and vision statements.

An elevator pitch, or a 30-60 second overview of a business spoken during an elevator ride, is one scenario in which a startup may want to communicate the mission and vision to investors. An elevator pitch can be an effective tool but without being able to communicate and tell a story in a short period of time, it can be ineffective.

Longer pitch presentations, pitch decks, websites, or social media platforms may not have the same time constraints as elevator pitches, however it can be equally as important to communicate the vision and mission effectively. The messaging should be consistent across these various communication scenarios while tailoring the messaging to the optimal format for each pitch delivery. Repeating the message in multiple places can help communicate its vision and mission.

Example Businesses

Keeping in mind the information that has been discussed above, now let’s look at an example of a good and a bad elevator pitch, discuss why they might be good or bad, and figure out ways to improve the bad one to make it better. Let’s look at Company A, a local bookstore:

Bad Pitch:

Company A, located in Austin, TX, is a local bookstore that sells books, movies, puzzles, and book accessories. There are many different genres of books and movies. There is an option for a membership and rewards program. Monthly book author events also happen here.

Good Pitch:

Company A, a local bookstore in Austin, TX, offers a variety of books, games, movies, puzzles, and whatever else booklovers might want! With a wide range of genres and a 1500-sq ft space, the experience inside is like no other bookstore. The café inside offers seasonal pastries and coffee for a relaxing oasis while enjoying your favorite book. The membership program allows you to collect points to redeem for free books and even gives you rewards for referring friends. The bookstore also has events with popular authors for book signings and book clubs!

What differentiates the good from the bad:

While it might seem obvious, many things differentiate the good example from the bad one. The good example gives the pitch in a much more engaging way than the bad example. Potential investors may be more interested in an engaging and fun marketing pitch compared to one that only states facts that someone could find by doing a simple Google search. The good example also provides more information to the investor versus the bad one, which can help draw in an investor.

Final Thoughts

Effectively communicating a startup’s vision and mission is not just about relaying information, it is about developing a story that resonates with potential investors. By storytelling with clear and engaging content, startups can create a connection with investors that not only highlights the company’s uniqueness but also can get the investors involved. The art of storytelling takes a pitch from a bland presentation to an exciting adventure. Whether through a pitch deck, elevator pitch, or networking conversations, the more cohesive and authentic the startup shares its vision, the better the startup can be at future pitches. Remember that the art of storytelling is a learned skill and could take lots of practice but can be worthwhile in the long run!

Want to learn more about communicating vision and mission? Check out the following MicroVentures blogs to learn more:

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The information presented here is for general informational purposes only and is not intended to be, nor should it be construed or used as, comprehensive offering documentation for any security, investment, tax or legal advice, a recommendation, or an offer to sell, or a solicitation of an offer to buy, an interest, directly or indirectly, in any company. Investing in both early-stage and later-stage companies carries a high degree of risk. A loss of an investor’s entire investment is possible, and no profit may be realized. Investors should be aware that these types of investments are illiquid and should anticipate holding until an exit occurs.

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