I get this question often from startups who are in the process of fund raising. If you are on a tight budget, you might be able to hold off the big expense of producing a video.
  1. There are videos and videos. Many of the animated videos you see today on the web (“So, you want to [FILL IN UNMET NEED]”) are presentations in disguise: an animated sequence of static slides. For some products, showing moving footage of the product is really useful. Examples are gadgets and other hardware that you often see on sites such as Kickstarter. If your product does not depend on a live demonstration, a sequence of presentation slides can be as effective.
  2. Unlike consumers, investors are usually perfectly happy to click through a sequence of slides instead of playing a video
  3. Videos are permanent and very hard to edit. Startup stories always evolve and change.
So, the best approach might be to start with an animated series of static slides. You perfect the flow over time and if you really feel you nailed the story flow (and you have the budget), you can make the expensive of creating a pitch video.