A recent article published in Alley Watch magazine discusses 8 tips recommended by successful business persons for successfully pitching investors.
1. Share Your Big Vision, Not a Product Tour
Doreen Bloch, CEO/Founder of Poshly Inc said that investors are usually more interested in the big picture, which is your vision for your business, why they will be a good match, and how your company will return their money handsomely. Therefore, spend less time on the nitty-gritty upfront; rather, capture the investor’s interest with your passion for the bigger picture.
2. Find the True Believers
Derek Flanzraich, CEO and Founder of Greatist said that contrary to what many entrepreneurs may think, it’s not your job to convince investors why they’re wrong but, instead, to find investors that think you are right. Spending time speaking with investors who aren’t convinced can be a huge waste. Instead you should search for true believers and advocates.
3. Win the Battle at the Beginning
Raoul Davis, CEO of Ascendant Group said that doing PR and branding work for your company in advance is important. Make sure you have built a relationship with one of the partners at the firm. The deal should already be close to being done before you pitch. You should be able to inform an investor exactly how you plan to produce the projected revenue concisely and clearly for the deal to get done.
4. Know What an Investor Fears
Corbett Barr, Founder of Insanely Useful Media said an investor’s biggest concern is missing out on something big. The surest way to land an investor is to convince her that your project is a big opportunity not to be missed out on. Have other respected investors on board for social proof, which is the best proof of your opportunity.
5. Be Cocky to Seal the Deal
Jun Loayza, President of Ecommerce Rules said that you should maintain a balanced approach while meeting investors. Rather than being over friendly and nice, act little cocky as if you are the prize and that the investor needs to impress you in order to take the money.
6. Communicate Your Milestones to Build Confidence
David Ehrenberg, Founder and CEO of Early Growth Financial Services said that you should instill your would-be investors with confidence by clearly connecting the dots between their investment and your business goals. Create a compelling narrative that shows that you will be able to accomplish your goals with their money which will most certainly guarantee future investments.
7. Do All Your Homework
John Harthorne, Founder and CEO of MassChallenge said that there are two things that you absolutely need to know: which industries they invest in and what prior investments they have made. Also, it will help if you know a bit about their personal and professional background. You need to show that you are a capable and reliable recipient of their money.
8. Do Not Talk Valuation
Carmen Benitez, Co-Founder and Managing Director of Fetch Plus said talking valuation during a pitch is shortsighted for an early-stage investor pitch. Instead, focus on the team and the technology. Clearly explain the stages of your startup and the reasons why you are requesting a certain dollar figure.
Read more details in Alley Watch magazine
How will you implement these 8 tips while pitching investors? Tell us in the comments below.