How to pitch your startup to an investor

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how to pitch investors

Looking to fund your business is not as easy as people may think when looking for seed capital. It definitely requires creative thinking, but your ability to pitch to your potential investor is more important than having a wonderful idea. Many times, people conceive impressive ideas but lack effective pitching skills to build their dream. It is true that among the 100 investors, you talk to, 2 will show interest in growing your business. Don’t loose hope. The way you pitch should have a direct impact on value creation.

Below are some ideas for crafting an effective business pitch to impress potential investors.

Storytelling:

Since the beginning of times storytelling has been a charismatic approach in creating and holding the interest of your audience. Your story, better yet, how you tell it, will definitely get you a step forward in front of investors. The words you say to narrate a story are enough to turn the heads and attract investors to your startup. Don’t only show passion, transmit it too.

Target the right investors:

Time is very precious. So, be wise to pick out the correct audience to get funds for your business. Even if your pitch is impressive, it will fail to attract an investment if you pitch to the wrong person. Angel investors, who are looking for novel ideas to fund may be a great choice but analyze well their intentions. Are they in for the passive returns or are they actively looking to work alongside you?

Use simple language:

It is often a misleading belief that if we use highly complicated language, that it will impress potential investors. You have to keep the pitch simple and understandable. While preparing a presentation you should not forget to add all the relevant information to gain the trust of the investors. If your presentation is too long, it will do no good to your business. Keep it lean, direct and clean.

The go-to market:

Do you have a persona? An idea of your early adopters? Make sure when pitching your business to investors, you have a clear idea of who your target audience is and how are you going to take your product to the next level. They are not looking for too much technical information, rather a lean logical procedure when scaling your idea to an active business.

Financial forecasts:

Your forecasts show negative numbers in the first year? Second? Don’t worry too much. Most businesses don’t see the green color till their 5th year of operations. By stating negative numbers you are sending a clear transparent message to the investors on what’s your future predictions. This will also take off the list investors who are in for a short ride. Present it clean and simple. It shouldn’t be more than two slides.

In short, pitching a product through simple words, including all the relevant information about the product you are going to sell and the future figures you plan to earn will allow you to gain a competitive advantage with investors. It should not force them to invest. It should create a positive image of your product that would really compel them to invest in your new business. A great way to turn the cards in your favor is via networking. Expand your contact reach and you will be able to get referred by someone you met.

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