The Art of the Pitch: Selling Your Startup to Investors
Pitching a new venture to potential investors is one of the most daunting tasks a startup founder or entrepreneur will ever face. The mere thought of standing in front of a sea of investors representing potentially millions of dollars, ready to evaluate and determine the future of your dream can be a nerve-wracking experience. At the same time, those same fears can be conquered, and the courage to face potential investors can bring you closer to the big payday you seek.
Whether you are trying to find potential investors for your brand new venture, or if you have already established a customer base, the same skills and strategies are important to successfully pitch your startup to investors.
The goal of this article is to help you learn the art of the pitch, so you will be able to communicate your passion, as well as all the other aspects of your business that make your venture especially appealing.
Getting Ready to Pitch
There are a few simple steps you can take to get ready for a successful pitch to potential investors:
- Research Potential Investors
Before sitting down to craft your pitch, do your homework and research potential investors. Find out what type of investments they are most interested in, and target your agenda to meet those specifications.
- Practice
Practice, practice and practice some more. Make sure you have a good grasp of the facts, figures, and everything else you need to be able to explain your venture confidently.
- Ask Questions
Find out what questions potential investors typically ask. This will enable you to think through potential objections and have convincing answers ready.
- Set Measureable Goals
Set measurable goals (e.g. return on investment, financial projections, etc.) that you can realistically achieve. This will provide investors with a clear understanding of your business model.
- Have a Clear Agenda
Even when you get your first meeting with potential investors, you should have a much bigger plan in mind. Showcase your big-picture ideas of the venture but make sure you have a clear roadmap of how to move ahead.
Strategies for Crafting a Successful Pitch
- Know Your Audience
Keep in mind that a good pitch needs to be tailored according to the audience. Make sure to keep your pitch tailored to the interests of investors.
- Make it Easy to Understand
Make sure your pitch is clear, concise and easy to understand. If a potential investor can quickly understand what your venture is about, they are far more likely to invest in your venture.
- Showcase Your Successes
Be proud of your accomplishments. Bring up successes and any other awards or recognitions you may have received. This will create an incredible sense of confidence in the potential investor.
- Have Relevant Supporting Materials
Make sure to have a few relevant supporting materials ready that accurately show the potential of your venture. Bring along a slideshow, a proposal, a demo, a fact sheet or anything else that makes sense to the potential investor.
- Anticipate and Address Objections
No matter how well you present your idea, there will always be some objections that come up during the pitch. Prepare for this eventuality by anticipating potential objections, and think up ways to counter them.
Effective Ways to Close a Pitch
- Ask for the Investment
This may seem obvious, but it still needs to be said. Be confident in your vision and your team and ask potential investors to put in the money they are considering.
- Leave Room for Questions
Be sure to leave the potential investor with plenty of time to ask any questions they may have. Even if no questions are asked, makes sure you offer an opportunity for them to ask.
- Follow Up
Always follow up with potential investors. Even if the initial meeting goes poorly, a bit of persistence can work wonders.
- Find Alternatives
If you hit a wall, or feel like it’s not the right time for the investor to make a decision, look for alternatives. You may be able to find other sources of funding or collaborate with other stakeholders.
Pitching a startup to potential investors can be a daunting task, but if you take the time to properly prepare, the fear and apprehension can be dealt with and conquered. Utilizing a few simple strategies such as doing the necessary research, being prepared with materials, and close persuasively, will enable you to effectively communicate with investors and put you in the best possible position to receive the funds your venture needs.
