Pitch Perfect-How to Be Irresistible to Investors

Having a wonderful business idea is just the start of the exciting entrepreneurial journey. As you grow you will want to start raising funds for your business in order to help it to grow. In this blog I am going to share with you some tips to  help make your business irresistible to investors and get you funded.

Above everything else you want to make sure you are in the right room with investors who have money and are interested in what you are doing. If an investor does not have money how are they going to be able to invest in your idea. If they are not interested in being a part of your industry, they will lack the motivation to want to be a part of your company. 

The best way to reach your ideal investor is through a warm introduction from someone they know. As said by John Livesay, “If you can’t figure out a way to get a warm introduction, you probably can’t figure out how to get to your customer either.” Once you receive a warm introduction, follow up immediately by email outlining your business idea and then ask for a meeting. Keep following up until you receive either a yes or no. If you receive a no, ask for feedback, thank the investor and ask, “Who else do you know that I should talk to?” Investors tend to know other investors, and that investor may just be the one to fund your business. You will eventually reach an investor to agree to a meeting if you stay persistent.

 Once you get a meeting with an investor, you will want to learn as much as possible about them. Research what deals they’ve done and the size, the deal points they seem to favor (e.g., particular equity or debt arrangement, seats on your board) and so on. If you really want to build rapport with the investors, research what gets them excited outside of work and activities they enjoy. See if there is a connection between the activities, you, or your business. For example if you find out an investor likes rock climbing and you have an app that helps people find and arrange their perfect vacation, you  might want to emphasize how the “outdoor travel” segment of your market uses your app to plan trips to places like Yosemite.  Research your investors the way you do your customers. Customizing your presentation to appeal to their interests can get you closer to a yes.

Remember the whole purpose of a pitch is to get the “second date”-that is, a follow-up meeting, where your business will be discussed in greater detail. Your goal is to get the investors interested in your business and thirsty to know more. 

A great pitch answers two questions

1. Why you? What makes you and your team uniquely qualified to execute this idea? Investors care to know why you and your team are passionate about this idea. 
2. Why now? Timing is important. For example if so many people did not own smartphones by 2009, Uber would not have worked. Explain the reason why now is the perfect time for your idea.

While these questions are very important it is not enough to get funded.. There are three unspoken questions that need to be answered, not by the data of your presentation, but by the investor’s perceptions of you and your idea. 

1. Unspoken Question 1# “Do I think this will work for me?”  This is a head thing. Your startup needs to fit within their current portfolio of companies. They need to know they can bring value beyond just money. As stated earlier, it is important to choose investors who have an interest in your particular industry. Also, if they are invested in another company that could be a competitor they may not invest.
2. Unspoken Question 2# “Do I like you?” This is a heart thing. When investors invest they are potentially entering into a three-to-five-year (or more) relationship with you and your company. They want to make sure they will like spending time with you. When you can show a connection with your customer’s problems, investors are more inclined to believe in your solution. 
3. Unspoken Question #3. “Do I trust you?” This is a gut thing. During your pitch it is important to be honest and truthful. Investors are taking a huge risk by investing in you, because there are few startups that produce a significant ROI. 

To answer all these questions successfully and get to the “second date,” your pitch needs to be a combination of (1) a clear business plan as outlined in your pitch deck, wrapped in (2) a compelling presentation filled with interesting stories instead of dry facts, (3) delivered by you with confidence, passion, clarity-and brevity. 

At Slide Navigator, we would love to help you with crafting your pitch deck. We will help make sure your presentation includes all these key elements and design a polished presentation that makes you stand out from the pack and get you funded. You can check out our pitch deck services here. Click here to schedule a free consultation for our pitch deck creation services.

Reference

Robinett, Judy. “Secrets of Creating and Delivering a Compelling Pitch.” Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup, HaperCollins Leadership, Nashville, TN, 2019, pp. 128–130.