10 Tips to Pitch Investors are:
#1 write a good and solid business plan
Some businessmen have a fear that their business plan will be stolen if they give it to their investors.
But, they will not do so because:
• Investors always focus on making money by investing in your business and not running a business on their own.
• Some businessmen also invest in other businesses to share their risk only. For example, Ds Group, which makes toffees and pan masala, invests in startups and small companies to diversify their risks.
In a business plan, investors check:
• How revenue will increase?
• How risk will be reduced?
Traction means sales and growth.
• If you have a saree shop, then your traction is how many sarees you are selling weekly or per hour whether you are selling it online or offline.
Traction gives a clear signal to investors that you are a solid founder and you can build traction.
#3 Have a clear financial projection plan
Financial projections depict that your revenue streams are clear, your business and team are solid and you can think of the future. It means that you will make money in the future.
#4 Research about the investor that you are reaching out to
• Some founders take out a list of investors and send them a cold email, i.e. same email to everyone like mentioning about yourselt, your business, and your requirement of funds.
• If you do so, then you will get nothing; not even a reply. This is because you may be pitching to an investor whose focus area is different.
• So, you need to first research which investors invest in your industry or the investors who invest in ventures like yours, in India and abroad.
• You should pitch to only these investors.
• While researching about the investors, check then portfolio whether 1hey have currently invested in a venture like yours. If this Is so, do not pitch them because they generally don’t invest in the same type of business. However, some investors will invest in a similar business with a point of view that if one company grows bigger than the other, then the big company can acquire the small one.
#5 Create an Investor Relations Page on your website
• Supposeyour website name is xyz.com, then make an investor page with the name
• If you go to the website of any public
company or a listed company, then you can find an investor relation page in it.
• On this page, they mention their annual results, CEO communication, Brand communication, limited information about investors and their investment, etc,
• This page shows maturity and that you are ready for raising funds.
• whether you are a small company of only 6 people and you don’t need funds now, but you should make an investor page as it creates value and investors know 1hat you are a mature company and can raise funds.
#6 Warm introduction from an existing founder
• Nobody willgive you money in the first or second meeting because they don’t know you.
• However, if you want to raise funds in the first or second meeting, then you should ask an existing founder (in which the investor has already invested money) to introduce you to the investor through an email and recommend you. It is called a warm introduction.
#7 Be clear about what you want
• You should have clarity about the amount of money you want to raise from the investors.
• In your financial projections, you should mention the amount of money you want to raise.
• If you want to raise Rs. 2 crores, then do not ask the investor to give you Rs. 5 lakhs today.
• You should not do this as it will decrease your value in front of the investors because investors will think that the founder will be busy only raising the funds and will not be able to grow the company.
#8 Be prepared for a “No”
• if you think that you will get funds from the investors In the first attempt, then Ittls not possible.
• Even the big and billion dollars companies like Facebook have to pitch their business plan 100 times to the investors and then they accept to give funds.
• So, ready yourself to hear a “No” , tips to pitch investors
• Also, it an investor says no to you, it doesn’t mean that he/she will not invest in your business. They generally do a dip test to check how strong you are. He/she may reach out to you after six months or after a year.
#9 Show Financial Maturity
• Investor will ask you one question, i.e. where will you invest and spend his/her money?
• when you are hiring, it is an investment.
• when you do marketing, then it can be an investment or expense.
• So, you should have clarity so that you can tell investors where will you invest and where will you spend and what do the investment and expenses mean and how will it increase the value, solidity, customer, top-line, and bottom-line of the company.
#10 Create a strong elevator pitch
Elevator pitch is a 30sec to 60-sec pitch in which you tell the investor about everything including your business, products, traction, financial projections, amount of funds you want to raise, etc.
You will get a detailed video on the elevator pitch that will include frameworks, examples, etc.
What Do investors look for in a Pitch?
Professional pitch deck, USP, Show your dedication and determination, Demonstrate knowledge of your product and industry.
Where can I pitch startup idea?
You may also contact an angel investor, investment network, or angel investor group directly to pitch them your idea.