This post originally appeared on Entrepreneur.com - #StartingABusiness
The green episode of our weekly pitch show features businesses in the cannabis industry.
3 min read
Entrepreneur Elevator Pitch invites ambitious entrepreneurs to step into the Entrepreneur Elevator, then gives them just 60 seconds to pique the interest of a group of judges. It’s a high-pressure, fast-paced environment in which startup founders need to race against the clock while maintaining their composure to make a clear, deliberate pitch that covers at least three essential components:
- Defining the company
- Making the request
- Specifying what the investment money will be used for
The investors watch the pitch via a video livestream while the elevator ascends to the boardroom floor. Once the 60 seconds are up, the judges vote on whether to open the doors or send the founder back down and pass on investing.
The fifth season of Entrepreneur Elevator Pitch offers a dynamic change in the show’s format. Before, our four judges needed unanimous agreement to make an offer to the pitching entrepreneurs — including three out of four “yes” votes just to open the elevator doors. Now, it only takes one investor to open the doors and one judge to make an offer. The panel of four can then choose whether they want to collaborate or compete against one another.
This is Season 5’s Green Entrepreneur episode, featuring startups exclusively in the cannabis industry. It starts with a Washington-based pre-rolleds business and a big ask: $1 million, in exchange for 10 percent of the company. This massive investment request is particularly notable because of the person asking, which is not a president, a CEO or a co-founder, but instead a creative marketing director.
“Are you even authorized to be able to cut a deal?” asks investor Peter Goldberg.
“Yes, I am,” she answers. But can she actually make one with our judges.
The next pitch goes even bigger, as the leaders of a cannabis supplement company ask for a whopping $15 million in exchange for 30 percent of their business. For an investment of that size, the pitch needs to be almost flawless, but the judges note two major missteps.
“They didn’t talk about revenue,” says Randy Garn.
“So you can assume none,” answers Ross O’Brien. “If you have revenues, you’re going to tell me you have revenues, because that’s the most important thing.”
Second? “Their attitude just didn’t present well to me,” says Elizabeth Sarquis. “It wasn’t very authentic.”
“Anyway!” concludes Goldberg. “Time to vote.”
Will anyone give them a second chance inside the boardroom? Watch the full video to find out and see more pitches.