Middle Market Deals and how to buy, sell and raise capital from $5 to $500 million

Elevator Pitch:  The phrase "elevator pitch" is a reference to the time you have in an elevator to introduce your deal to an unsuspecting investor, especially a venture capitalist.

In reality, entrepreneurs do go out of their way to be in the same room with venture capitalists just to have that quick chance to pitch.  Without an appointment, an entrepreneur better bring it.  Fast.

A good elevator pitch starts with a simple, clear, jargon free statement of what the business is.  For instance, you might say, "MedDevTech Co. is a medical device company that has patented a new technology for the treatment of a specific, common birth defect."

Then, you'd want to go on to identify up to three points about the business that differentiate you from your competitors.  You might say something like, "Our new device both reduces the cost and the pain involved in the treatment of the disease as compared to the market leading technology."

One of your three points should also touch on the size of the market and the quality of the team leading the effort.  Statements like:

"Every year four million people are treated for this disease at a cost of $4,000 each; even at our lower costs, the market size remains over $2 billion."

"Our team is led by Dr. Smith, a leading researcher in the field; we've been working together for two years and have hit all of our key milestones on or ahead of schedule."

You may want to visit the Investopedia definition.

Brad Feld of Mobius Venture Capital recently posted on tips for phone calls with VCs.  Worth a read.