There is no one thing (aside from integrity) that is an absolute, and what you need to have when fundraising for a startup will depend to some extent on how you are managing your funding process. A good list of just about everything you could possibly want to have in your arsenal is listed in the answer to What materials or software should I use to pitch a VC?
If you are going around personally to talk to potential high net worth investor to whom you have an introduction, you probably don’t need a video. On the other hand, if your initial contact with a potential investor is online, then (at least in the US, although I assume elsewhere as well) a video can be very helpful. In the context of an organized group of angel investors, it is even more important.
The reason for this is that despite all protestations to the contrary, angel investors to a large extent react on a somewhat intuitive basis, with their faith in the entrepreneur personally being one of the most important factors in their decision process. And whether it is true or not, most people will tell you that they believe they can tell much more about a person from watching them face to face, than they can purely from their writing.
So when reviewing 20, 50 or 100 submissions for funding during the screening process, I have found that it is incredibly helpful to be able to watch a quick (2-3 minute) video elevator pitch so that I can get an instant gut feel for the entrepreneur and the company. I’ll be looking for all those same clues that I’d be watching for during an in-person meeting.
*original post can be found on Quora @ : http://www.quora.com/David-S-Rose/answers *