This cannabis-focused episode features maniacs, crazy profit margins and a multimillion-dollar deal. July 10, 2019 2 min read Entrepreneur Elevator Pi
This cannabis-focused episode features maniacs, crazy profit margins and a multimillion-dollar deal.
July 10, 2019 2 min read
Entrepreneur Elevator Pitch invites ambitious entrepreneurs to step into the Entrepreneur Elevator, then gives them 60 seconds to pique the judges’ interest. It’s a high-pressure, fast-paced environment in which startup founders need to race 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 through a video livestream while the elevator ascends to the boardroom floor. Once the 60 seconds are up, the group votes on whether to open the doors or send the founder back down and pass on investing.
This episode starts off with one of the biggest valuations, and asks, in Elevator Pitch history. A founder looking to expand into hemp products asks the judges for $3 million in exchange for just 5 percent of his company — equal to a $60 million valuation. Those big numbers up front have the four investors inside the boardroom laughing, but impressive revenue numbers grab their attention. By the end of the 60 seconds, the judges are split two to two. Are they really willing to consider a $3 million investment?
Likewise, the next founder brings out the judges’ skepticism early on in his pitch by claiming that his company’s profit margins are more than 100 percent. “I think we want sound, serious founders who have something to bring to bear that isn’t snake oil,” says investor Kathleen Griffith, “and that’s what this felt like to me.”
After that, a high-energy pitch leaves the investors calling its founder a “maniac,” even as they open the doors for him, which leads to the line, “Hell yes, Elevator Pitch, LET’S GO!” The only question is whether he can convert that initial interest into dollars and cents for his business.
Click play to see more from these entrepreneurs and watch the final two pitches in this episode.