Simple Tips for Practicing Your investor Pitch Ahead of Big Meeting
So you have a startup and are trying to expand it to new territories and now you need investors to make your dream into reality. So, now you have landed yourself a spot to sit down with an investor and pitch them your startup idea. Congrats! Now comes the hard part of figuring out what the heck to say.
Investors meet thousands of startup founders each year and only sign a few deals which impress them. Don’t get me wrong I am not discouraging you at all, but what I am trying to convey is that your pitch is crucial to obtain funding from investors and mostly your startup is going to get rejected a lot of time before it is accepted by the investors.
Realizing the fact that investors invest their money where it seems worthy will help you approach pitching investors as a learning process rather than an all-on-the-line, win-or-lose kind of situation.
Keep reading these articles to know how to pitch to an investor, so you can put your best foot forward in these meetings.
Pitching to Investors’ Tips
There are a few tips that you can follow to prepare and pitch investors about your startup that will help you out when you are actually in the room.
1. Preparation is the key.
You only have a short window of opportunity to dazzle and make a lasting impression because the majority of investors have busy schedules and schedule meetings at specific times.
Most pitch meetings last between 10 and 20 minutes, but if the startup is compelling and successful, it might take more time to fully comprehend your operation.
Suppose let’s say if you have only 10 minutes, your pitch will be completely different than the one in which you have 30 minutes.
Don’t forget to get ready for the question and answer period, which is usually allotted, since pitching your startup idea to investors means they will have questions at the end. You might, for instance, schedule a 30-minute meeting with the investors, during which you would have 10 minutes for questions and 20 minutes to present your business.
2. Know Your Investors
Don’t assume that your investors will appreciate the startup company you built with blood, sweat, and tears. Emotions have no place in business because you are selling your shares to expand your business, while the investors are investing their hard-earned cash to support you and become even richer.
Don’t make the mistake of assuming every investor is interested in the same details. Do your research on each investor you are about to meet and try to know details such as startups they have invested in the past, patterns around what makes them say yes about a business, and the types of questions they might ask you.
You can find all the information about the investors and the type of questions they might ask you simply by searching on Google, but I recommend you make a couple of phone calls to founders who have dealt with investors before.
3. Never Start With Your Ideal Investors
I will be honest with you, when you invest your idea to the investors it won’t be like a Shark tank where the investors will be falling to give you money.
It’s a pretty rare occurrence to completely nail your first pitch and secure a deal right then and there. It is more likely that before you finally receive funding, several investors will say “no.”
When you pitch to investors, you must have a growth mindset, and you must take every rejection as an opportunity to learn and improve. With every rejection, you will learn something about how to pitch your company, how to answer common questions, and the kinds of information investors expect from you.
4. Avoid using Industry specific Jargons
You may be an expert in your field, but the investor may not be. Avoid using too many industry-specific terms or acronyms that may inadvertently confuse your audience and create unnecessary questions that throw the pitch off the pace. This is one of the key tips for pitching to investors that most startup founders forget.
Closing Thoughts
Learning how to pitch to investors, create a banner for a company or solve a complex problem, anything you want to learn will require time and patience.
If you found the tips for pitching to investors helpful, make sure to visit the website again as we will be updating and writing new articles on investments and entrepreneurship.