By Tian DuBelko
Investors are busy individuals who can hear up to dozens of startup pitches every day. That means if your pitch underwhelms and fails to leave an impression, you won’t be getting the vital capital that your business needs. In the tech world, companies come in all shapes and sizes. However, no matter what tech industry you’re in, there are some effective pitching strategies that anyone can use to impress investors and secure funding.
Here are the 8 keys to keep in mind when preparing your pitch:
Establish your credibility early
Experience is hard to come by in the startup world, so if you have any, make it absolutely clear to potential investors at the get go. This is a great opportunity for you to highlight your industry experience and showcase any business experience you have. Bring up any relevant past experience early on to establish your credibility. This way, investors will be more likely to hear out what you have to say. If you can present yourself as an experienced professional, it’ll go a long way towards inspiring confidence in potential investors.
Recommended: How Founders Can Fund Their Tech Startups
Showcase your team and be honest
It takes more than just a great idea to get a company up and running. You also need a team to execute that idea. Be sure to mention your team’s strengths, but also be ready to share any underrepresented skill-sets your team may be missing. Startup teams are often budget constrained and may need help in key divisions- whether it’s in programming, sales, marketing, etc. Be honest with investors about your team’s strengths and weaknesses. They’ll take notice.
Know your target customers
Before you try to sell your company to investors, you need to know who your target audience is. Sometimes determining this can be as simple as looking at who your competition is marketing to. Other times you may need to do deeper market research and conduct beta testing to see who responds to your product and how. Most investors will ask you who your intended customers are, and if you’ve done your homework here, it’ll ease their fears about backing an unviable product.
Recommended: How to Attract VC Investors as a Tech Startup
Believe in what you’re selling
A confident salesman is a good salesman. You can’t expect investors to pour millions of dollars into your product or service if you don’t believe in it yourself. That’s why you have to intimately know what you’re selling, inside and out. Investors want to believe that they are investing in the next Apple or Google. Give them a reason to.
Research your competitors
Make sure you know how your product/service stacks up against your competitors before meeting with potential investors. Otherwise, you’ll come off as ignorant, or worse, negligent about your own business. Be prepared to answer questions about your industry and similar companies. Also be prepared to explain why your product or service trumps your competitors’.
Know how you will use the funding
Investors are going to simply give you a lump sum of money to use as you please. They want to see a documented plan for how their money will be spent on building your business. Investors will want to see your expected expenses, as well as your projected revenue, typically for at least the first five years. Having a documented plan will also help you stay on track in expanding your business at a steady rate.
Be organized financially
Financial stability is an important quality that lenders, angels, and venture capitalists look for in growing companies and businesses. If you can provide bank statements, budgets, revenue projections and a projected growth plan, investors notice your transparency and your goal to continuously grow your business.
Recommended: 4 Tips For Venture Funding Success
Have an exit strategy prepared
For businesses seeking large investment sums, your investors will likely question you about your exit strategy. Do you plan on going public, getting acquired, or maybe another option? You have your end goal worked out before you meet with investors. Having exit strategies 3, 5, and 10 years down the road shows that you’ve done your due diligence and have thought about your business long-term.
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