Do you know how to pitch your startup idea to investors and convince them you are a safe bet for their money?
You know you have a great idea that will probably revolutionise the world.
But how do you convince others of that? How do you reach into their minds and make them understand that you already foresee the success of your enterprise?
Let’s find out together the main ingredients that make up a great pitch.
9 Ways to Make Investors Fall in Love with your Business
1. Don’t make it a pitch, make it a story
You need to make your pitch unforgettable by capturing your public’s attention via a storytelling experience.
Yes, it is ok to bring support of your business and numbers but they also need to see that you really believe in your startup and you have a certain view of its future.
If investors see and feel that you can talk about your business without always checking the sheets, they will feel you know your business.
2. Who are you talking to?
Do you know the investors that will listen to your pitch?
Have you checked them before so that you may know if they are interested or not in your pitch?
Check the investors’ past investments and see where they put money into, what type of companies they supported and how it worked out for them.
3. Adapt your pitch to suit the audience
Don’t use the same pitch for different types of investors.
As we said at number 2, do some research on the people you’ll be talking to and find out who they are and how they think.
Check their public profiles and read what they shared on social media or in online articles, if there are any.
As soon as you’ve done your homework, adapt your pitch in order to respond to their interests.
In addition, after your pitch presentation is done, don’t forget that you will continue seeing them in the industry in the future so it is a good thing to show that you follow them.
You never know how your paths might intersect again in the years to come.
4. Just tell them directly what your product is
The investors that listen to your pitch were not born yesterday.
They saw many good and bad ideas coming and going, and they also learned from the mistakes they did in the past.
Before you start your pitch, you need to understand that you address people that acquired some degree of knowledge on what makes a product great and they (should) recognise one when they see it.
So, don’t lose the time and just tell them what your product or service is, what makes it a great product and what problems it solves. And then just stop.
If you managed to send the message in a satisfying manner and it is a good product, they’ll want to learn more about it. Then, it’s your turn to listen and reply to their questions.
5. Remain flexible and anticipate their concerns
Don’t go into a defensive stance if you meet resistance.
The investors are there to give you financial support and they want to make sure they will see the money back.
It is normal for them to find and close every loophole they see and clarify all details of your business.
Thus, understand that in this phase the investors are your target audience and they write the check for you.
As in each case, good preparation and training are essential. Imagine yourself holding the pitch and anticipate their questions and your answers.
6. Who are you building your product for?
Do you know who is your target audience? Who will buy your product and why?
How well do you understand the group of people you target and why should they buy your product/ service?
Investors want to hear you responding to these questions in your pitch.
It is very important that you have a clear view of the customers you want to attract because you will have to adapt your marketing efforts accordingly.
7. Marketing magic
Connected to number 6 is the marketing strategy.
You know who your target audience is, but do you know how to “speak” to them? And will they listen?
Nowadays, more than ever, business success is all about marketing and the way you brand your company/ product/ service.
Investors want to hear you displaying your business techniques and the actual methods you’ll use to bring customers into your boat.
So, prepare your marketing strategy (do you have a strong marketing team with you?) and tell them about it. Most likely, the investors already have some marketing experience and they will come forward with some questions. Be ready for them.
8. Show some enthusiasm
Don’t be boring! Please!
Nobody wants to lose time listening to some formal and boring pitch.
Investors need to see that you really believe in your business idea and you already see it flying into the sky.
They look for some enthusiasm because they know that at the end of the day you actually buy into the individual selling the idea to you.
Of course, don’t let your passion overcome other qualities you want to display, such as pragmatism, data-based decision-making skills and business discipline.
9. Where’s my money?
Investors invest in startups because they want to make big money. It’s as simple as that. They are not there for any other reason.
So, preserve your enthusiasm but don’t forget that investors actually want to hear how you’ll bring their money back. They will ask therefore a very “simple” question:
How is your startup going to bring money for me in an amount (2, 3, or 4 years) of time? Do you have an exit strategy, such as an acquisition or an IPO?
How will you answer those questions?
Pitching your business idea is not easy and you need to cover not only the technical elements, but also the human aspects.
Investors don’t put money into an idea, they put money in your ability of growing a startup into a successful business.
Also, pitching is only the beginning of your relationship with the investors and you should remember that you are also the one choosing them for your business.
That’s because, after the investment, they will continue to stay close to you and they will even assist you with valuable (or less valuable) advices along the way. But that’s a topic for another article.
Are you looking to become the next unicorn in the digital space?
If you look for financial support, technical and marketing expertise, plus great mentoring and networking options, our team of professionals is ready to incubate your business. Contact us and let’s talk business.