Mastering Your Investor Pitch: Key Questions in Business Model & Market

When you step into an investor meeting, you have a small window to make a big impression.

Beyond passion and vision, investors are looking for proof that your business is well thought-out, scalable, and rooted in market realities.

One of the most crucial segments of your pitch — the Business Model & Market section — can make or break their decision.

Here are five questions you must be prepared to answer with confidence and data.

1. How Do You Handle Market Competition?

Investors know competition is inevitable — what matters is how you position yourself.

They want to see:

• Clear differentiation (features, pricing, brand, service quality).
• Evidence of competitive advantages (patents, exclusive partnerships, network effects).
• A plan to respond to market changes or competitor moves.

Pro tip: Use a competitive matrix to visually show where you stand versus others.

2. What Is Your Total Addressable Market (TAM)?

The TAM defines the full revenue potential of your business if you captured 100% of your target market.

A large, growing TAM tells investors there's room to scale.

Break your market sizing into:

• TAM – the big picture opportunity.
• SAM (Serviceable Available Market) – the segment you can actually serve.
• SOM (Serviceable Obtainable Market) – the portion you can realistically capture soon.

Example:

If you sell plant-based protein bars:

• TAM: Global health snack market ($100B+).
• SAM: Plant-based snack segment in North America ($10B).
• SOM: Targeted online direct-to-consumer sales ($50M).

3. What Is Your Current Market Penetration Rate?

This shows how much traction you've already achieved.

Investors love seeing proof that customers want your product.

Ways to measure:

• Share of total industry sales.
• Number of active users compared to the market size.
• Growth rate in penetration over time.

Tip: Combine numbers with customer testimonials or case studies to make it real.

4. What Are Your Market Research Insights?

Market research separates a guess from a validated business idea.

You should know:

• Customer demographics and behaviors.
• Market trends and emerging opportunities.
• Pain points and unmet needs.
• Competitor weaknesses you can exploit.

Pro tip: Back your claims with data from credible sources, not just personal experience.

5. What Is Your Current Customer Acquisition Cost (CAC)?

CAC tells investors how much it costs to get a paying customer.

It's a critical metric for understanding profitability and scalability.

Formula: CAC = Total marketing & sales spend ÷ Number of customers acquired

Why it matters:

• Low CAC means you can grow more efficiently.
• High CAC needs to be justified with high customer lifetime value (LTV).

Example:

If it costs $20 to acquire a customer who spends$200 over their lifetime, that's attractive. If CAC is $150, that's a red flag unless your margins are huge.

Final Thoughts

When pitching to investors, confidence without data is risky, but data without a story is dull.

Frame these five key questions with numbers, insights, and narratives that prove your business is not only viable but primed for growth.

If you master your Business Model & Market answers, you're already halfway to securing that investment.