A startup can be seen as a pioneer by offering a new perspective. It will take more than just a good idea to convince potential investors to write you checks.
To get attention from investors and accelerate your business, you must perfect your investor pitch.
Investors have heard thousands, if not thousands, of pitches over the years. The following themes are the foundation for a great investor pitch strategy.
Your business model is validated by sales
Because they confirm your demand and produce value, sales is the best type of capital.
It will be a great way to attract new customers if you have a prominent client who has paid for your product, whether it is in beta or as a pilot.
It informs investors about the market demand. Although projections are only indicators of what might be, they are crucial because investors are keen to see the upside potential.
Therefore, it is important to have and present hard sales data that shows increasing demand.
Describe who and how your audience will reach you
You haven’t done enough marketing research if you can’t describe your target audience or how you plan on reaching them.
Without a marketing strategy and plan, sales is impossible. This would indicate that you don’t know how to reach potential customers or that nobody is interested in your product.
Know your numbers to determine the return on investment
A clear business model will help you attract investors to your message. It shows that you are knowledgeable about the financial aspects of your businesses.
It is more than just creating a financial structure. It is also important to be able articulate it. Before releasing funds, investors need to know how your business will make money and what timeframes they will have to achieve that return.
Demonstrate that you are invested and committed to your business
Investors are interested in seeing that you have not only invested time but also money in your business. This shows that you have nothing to lose in the event of a bad outcome.
Investors want to see that your commitment to your business is unwavering. It may be financially and personally sensible to work part-time while your business grows. Investors want to see that you are dedicated to your business.
Expect to receive challenging feedback
Unanswered questions and gaps are bound to exist, no matter how well-prepared an investor pitch. Potential issues will be raised by investors to test your knowledge and ability.
Most successful pitches involve entrepreneurs anticipating questions and having answers.