Pitching investors is part of being an entrepreneur. However, it is not something so easy to complete. Many beginner have failed to do it successfully. Most of the problems is that they make unnecessary mistakes. It is called unnecessary because it can be avoided. To pitch investors, it is important to improve their interest. Hence, the likelihood for finance is increased.
How to pitch investors successfully for your business
Running a business brings its own many challenges and one of them is when you have to pitch investors. It is integral part especially if your business relies a lot on investors. Most entrepreneurs plan their strategies in advance before facing investors. And it is the right thing to do. However, it doesn’t stop there. There are more things to do to do it successfully. Here are some tips you can follow:
It is highly recommended to not send unsolicited emails because your investors might already received such emails and they don’t have time to check them one by one. The chance of you getting noticed is small. Hence, it is recommended to use referral, especially from someone your investors know in their network. You can ask your advisor to see if they have recommendations on investors referrals. It is even better if you get any direct instruction. The chance of you getting noticed by investors is higher this way.
When you send email to your investors, try to make impressive and concise introduction. It doesn’t have to be in a long paragraph. You can just write four to five sentence email introduction. Try to use thoughtful words instead of technical ones. Make sure that the content is interesting so the investors will consider it as exciting investment.
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Find more information to make sure that what you have and offer are aligned with your investor’s objectives and interests. There are many ways you can gather necessary information about your investors. For example, you can check out their website. You will find information about the exact stage, sector, as well as location they invest in. Find everything you need to know about the firm and individual from the person who made the referral if you are introduced to the investor.
It is also highly recommended to not ask investors to sign NDA in advance. You see, they have a policy to not sign non-disclosure agreement. If you have information you consider confidential, just don’t share them with the investors. Asking them to sign NDA before sharing information only extend the bridge between you and them. Provide information that will help generate interest between investors and your business.
During the pitch, make sure to make the slides brief but clear. Do not overload your investors with too many slides. It is better to make crisp presentation containing clear information needed by investors as well as highlight your team’s credentials and experience. You can provide more information later if your investor is interested and ask for it.