What A Startup Founder Should Know Before Pitching An Investor
An investor’s role is significant for realizing the million-dollar idea of a startup founder. Preparing well for the fundraising process is essential.
Here are some valuable tips while you attend your first investor meeting:
Pitch desk
Significantly, the pitch desk has to talk about the significant aspects of the business products and services. Providing a reference as a document would be interesting while you communicate. Such documents create a good impression of your efforts and commitment to the work. The initial slides build the impression. So, ensure to make them interestingly.
The key elements of the pitch desk include the following:
- Talk about your problem
- Your strategic solutions
- Inputs and outputs of product development
- Who will be your targeted audience
- Your financial plan
- Exit strategy
The pitch desk should talk about the team, plans and finance, and your ideas. If you clearly express your details frequently, investors will choose you. Investors should feel assured that a plan exists to make money.
Talk about a story
Humans usually find stories interesting. If you talk about your aspirations to investors as a story, investors get immediately connected to the business ideas. Your narration style depicts your passion. The startup founders are not established. So, they have to optimize all the potential paths helping to prove themselves and create a good impression.
Talk about your journey. Your inspiration to start your journey, the setbacks you have experienced, and where you are now. Such talk will keep the investors interested and engaged.
Staff
Investors show excitement about the team apart from their business idea. So, share the team profiles with the investors. Talk about their experience, skill set, and educational background to convince the investors about their investment worth.
Investors look at the unity of the founder team. A good rapport among the founder members will build trust. Don’t stand behind to prove your achievements. If you express them, investors will act in your favor. The intent is to showcase your desire, and the result you gain is money.
Prove your uniqueness
Undoubtedly, a startup has heavy competition to experience. So, come up with a presentation about your competitors and how you stand unique among them. Also, discuss your ideas and initiatives to stand out from the competition.
Develop a finance model
Investors are ready to invest only If the investor believes that the business idea can make money. You need to forecast the finance model for the next year to 5 years. Also, prepare a financial plan for the initial months to present your finances.
Significantly, present the money-making strategy to the investors and show them how their investment in your business can help them.
Study the investors
Study the investors‘ background before you talk about your ideas. Study their lifestyle, the organizations they invested in, success, and the failure rate. Find only the relevant contacts whom you can connect with. Be transparent and honest with your investors, as they are more likely to judge your integrity.
Choose the right investor
Not all investors would be ready to invest in your business. Your business idea may not sync with their thought process. So, how to choose the right investor? Study every possible detail about them, including their career information, interests, availability, network, and nature. Furthermore, forecast how the investors resonate with your business. Be clear about partnering with them.
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Q& A Session
Be prepared for a Q& A session. Anticipate the questions beforehand and get prepared with the right questions. Observe your presentation. If you think you have not expressed something, make a note of it and try to address it during the Q&A session.