Raising money for a new start up is not easy. Although there are a lot of investors who are on the lookout for the next big idea, they are so many standards that need to be met in order for funding to be provided. Well, if you have a great idea and you already have a date with investors, then you must take your chance the best way possible. Writing a killer investor pitch to convince potential investors to put money in your business can make all the difference.
Here are a few tips to help you with this:
Demonstrate the Market Opportunity
When an investor is looking at an idea or a start up, they ask themselves two very important questions. Is the product needed in the market? Is there a big enough market to scale growth? This is simply because an investor makes money if the startup scales or taps into a market opportunity no one else has. As you pitch your idea, the market opportunity has to come out very clearly. Use graphics to make your point. Explain why your product is different from others that have come before and provide an estimate of the total market value you think you are going to tap.
Demonstrate Passion for Your Business
Investors don’t just invest on the startup. They also invest on the entrepreneur. Passion is often a big determinant in this. Your pitch must show that you love what you are doing. Demonstrate the kind of sacrifices you have had to make in order to reach where you are. Explain how you came up with the idea and convince investors that you are ready to give your blood, sweat and tears to see your business succeed. This will be an important factor when investors make the decision of whether to put up the money or not says Petri Maatta at DreamMaker.
Avoid Too Much Jargon
An investment pitch needs to be simple. Whether you are pitching a technical idea or not your message must be easy to understand. Avoid using difficult words or too much jargon in your pitch. Too many financial details about the business and other technical details can be provided later. Besides, a lot of investor pitches are often very short. If you spend too much time on the technical stuff you might not get to the juicy part in time to get the investors interested.
Get Ready To Answer All Questions
Investors really want to see that you know what you doing. They need to understand that you have figured out everything. This gives them confidence that if they put up the money it will be in good hands. Look at your pitch before you get in front of investors and anticipate the kind of question that might come your way.
Getting funded can open the doors of success for any start up. Accessing capital is not always that easy but the tips above can help you give it your best shot.