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What our members have to say...
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"I am pleased that I already have the first two possible Investors to contact. Thank you once again for a great website and for all your assistance, I will certainly spread the word to all those I know looking for Investors. This is certainly the way to go."
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Lynda Roets - www.iburst.co.za |
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Use this 10-step guide for pitching perfection to investors
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Alexandra Fraser writes on Memeburn that enthusiastic entrepreneurs looking to raise funding must realize that a great business case alone is not enough to guarantee a favorable outcome. Not preparing adequately for a presentation to an angel investor or a venture capital fund is a sure-fire way to guarantee failure. Here are Fraser’s tips on what funders expect from entrepreneurs hoping to make a good impression.
1. Perfect your micro pitch. Your 90-second introduction, or “elevator pitch,” should be sharp, tailored, and deliver your most important information and key messages. Cut to the essence of the market need, your solution, its difference to the competition, and the type or amount of support or funding you’re seeking.
2. Tailor your pitch to your audience. Know the investment mandate of your audience and the type of support they provide, whether a VC fund, angel investor, or an incubator.
3. Stick to your allocated time. It’s not uncommon to be one of many start-ups pitching on the same day. If you’re unable to communicate the crux of your solution within your allocated time, you may be cut short and your proposal overlooked.
4. Practice your pitch. A tight, well-presented pitch leaves a great impression. You want your presentation to flow logically and look professional. Practice by presenting to people not familiar with your industry. If they are left with a clear understanding, it is likely the same will apply with potential investors.
5. Anticipate questions and expect interruptions. Prepare for interruptions and questions and try not get thrown off if your flow is interrupted. The upside is that it shows your audience is listening and engaged. In fact, encourage questions.
6. Avoid sweeping assumptions. Back up your claims and projections with hard facts. While potential funders may not be experts in your industry, they will be informed by the hundreds of other business plans flowing across their desks. If you don’t know the answer to a question, be honest and say so.
7. Be trustworthy. Early-stage investing is a high-risk business, so potential funders look for credible and honest entrepreneurs to back. Establish your credentials — whether in the form of industry-specific experience, other business experience, qualifications, endorsements, or awards.
8. Have a realistic development plan. While driven entrepreneurs with a clear vision are appealing, they need to have a credible plan to grow the business. Dazzle your audience with an understanding of your solution, the market, the amount of money you require, and the plan for putting that funding to work. The development plan must cover all areas of your business.
9. Keep your primary presentation to 10 slides. Less is more, although it is advisable to have additional slides that drill into more detail, if requested. Nothing looks more professional than a fully prepared presenter. Stick to the 10-slide rule for your primary presentation, which should cover:
• Your micro pitch
• The market need
• Your product or solution
• The IP or technology underlying the solution
• The market size
• Your competition
• How you intend generating revenue
• Your team, including biographical detail on the founders and key players
• The financials, projections & milestones
• The deal: what you require
10. Follow the 10:20:30 principle. Renowned Silicon Valley entrepreneur and investor Guy Kawasaki expounds the practice of 10 slides, 20 minutes, 30 point font size as minimum. Use visuals and graphics rather than reams of text to illustrate your point and retain your audience’s attention.
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