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Problem vs. Solution Focused Investor Pitch Presentation

We are in constant need of products and services that solve important problems through innovation and technology, which is why most entrepreneurs lead their startup teams to work on finding solutions. Startups are built around an opportunity spotted by the founders and the most innovative ideas and projects are inspired by identification of a need for a solution to an existing problem.

One of the key elements of successful startup pitch is presenting the Problem-Solution that your company provides. This is a very important element as, if presented well, sparks the interest of the investors. Angels and VCs are looking for disruptors and if you present them with an idea that tackles an important problem you will have their attention.

You need to understand the way your company solves the problem – by focusing on the emerging of the problem through identification of the reasons behind its emerging or by focusing on the solution to the problem already existing.

The problem, however, comes with the presentation of the Problem-Solution equation. One of the biggest mistakes that entrepreneurs make in regards to this topic comes from the fact that they tend to focus on the solution before they explain the problem. This is a critical mistake and can ruin your pitch.

Explaining a solution of a problem that is not clearly identified and not completely understood by the investors and the audience makes absolutely no sense. Even if you have the most effective solution, nobody will understand the need of it, if the problem that it solves is not explicitly defined.

If the investors don’t understand the problem, its scale and the group of potential customers (individuals or companies) that face this problem, they will not understand why solving this problem is that important and why anyone will pay for it.

So, next time when you craft and prepare for your investor pitch, focus on the problem first and then present the solution. Very often in pitching the biggest difference comes when you focus on the details.

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