How To Define Your Product For Investors

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how to define your product for investors

How To Define Your Product For Investors


One of the most exciting parts of pitching to a group of investors is showcasing the star of the show – your product. 

You’ve been working so hard on your product that when it comes time to pitch it – it is important that you first differentiate it between your product and your business.

Your product isn’t necessarily your business and it is important to define your product for your investors so it is clear.



define your productDefining Your Product

It’s important to make sure you are focusing on the item or service itself.

So how do you define your product for investors? You can start by asking a few simple questions.

1. What Gives Your Product A Competitive Advantage In The Market?

You’ve come up with a fantastic idea, concept, service, or product, and now is the time to show the investors why it is so unique.

Does your product have a feature that no one else on the market has?  Is there a software component that can be patented (and you have that patent?)

Or perhaps you’ve honed in on the execution of your product that has a quick turn-around that is unprecedented in the current marketplace.

Whatever makes your product or service unique is what you will want to focus on.


2. What Is Currently On The Market?

Investors will want to know that you’ve done your research.  While showcasing what makes your product or service unique, you’ll also want to compare and contrast what is currently on the market.

You can discuss trademarks you’ve secured and show how your product or service fits in today’s current marketplace.

Any industry insight that your team has learned or utilized while creating your product will also help investors understand your product and its place amongst competitors.

The hope here is that your product or service can’t be found in the current market and is a great opportunity for investors to jump on board.


3. How to Showcase Your Product Or Service?

define your productThis is a great time to physically show investors your product.  Even better if you are able to give each investor in the room a prototype that they can hold in their hands.  Holding a product can help connect investors to the creation. 

If you don’t have a physical product available, that’s okay.  You can bring a video demonstrating how the product works. 

This will help you define what your product truly does.

4. How to Define Your Product Through Design Evolution?

Giving your investors a little history into how you came up with the concept starting from the very beginning is a great way to define and showcase what your product is.

If done right, this historical evolution can give an appreciation and context to where you are today.

You can even include renderings or images to highlight changes to the design throughout the product development.

*If you do decide to give a historical evolution, make sure you don’t focus too much on small details, but rather focus on the big picture. 

Remember to keep your energy high when showcasing your product.  The higher energy will also excite investors. If you can’t be excited, how do you expect them to be excited too?

Investors should walk away with a strong understanding of why your product is amazing!


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