6 Ways To Win Investor For Your Startup
Whenever a company goes for raising capital, there resumes and track records do matter. Investors look for those entrepreneurs who have a track record of working with big brands and has been mentored by great leaders.
Even if you have an idea as big as Elon Musk or Steve Jobs, Investors will still look for a guarantee that you will pay back the investment they are making.
Here are 6 Ways that will help you win investor for your startup.
1. Skip the whole “Extra” thing.
Small talks are exactly that — small. Level up your conversation from rest of the world out there. Investors don’t care about what you eat or how you came down there. All they care about is how great your product is and how it will help everyone investing with you make money. So always set the priority to educating investors about your product and your vision on number 1.
2. Understand the market opportunity:
The most common mistake which an entrepreneur makes is that they don’t know how big market opportunity does their product have. So always remember the more tempting you can explain your market size is the more persuasive your pitch will appear. Always focus on the Big Ideas, not just the Business Lifestyle.
Let’s say If your vision is to launch a product that will help the base jumpers to auto-deploy their parachutes as per the height. The product could be really great, but there are not a big number of base jumpers out there. So instead if you will launch a product that helps athletes to track down there exercise routine you will definitely have a big user base and that idea will also have a much bigger market opportunity.
3. Stay Authentic.:
If you don’t know the answer to some question never ever reply with anything other than “I don’t know about this but will definitely look into this.” This is a fine answer and will also help you in building up your credibility
But it doesn’t mean that you can revert every question with that answer, you’d better know the basics of the business you are in. Let’s say the investor asks how much revenue you generated in the last financial year and you reply with “I don’t know about that but will get back to you with that”. Your meeting would end at that point only.
4. Shout out your intro to the investor, not just cold email.
If you are a first time entrepreneur, journey won’t be as easy as you read. So be creative with your approach and find a way to network with the investor and get introduced. Always do homework before visiting your investors. Find out how they are playing in the field. Find their pin buttons and make sure you pitch your business around that area for more chance of success.
5. Don’t overdo.
When you to a Porsche showroom for buying your brand new 911, you will only ask about the colors and accessories not what’s the maximum torque that car gives or how good the suspension system works. Similarly stay on the executive level points when you try to pitch only go to the technical level if they bring you to that.
The investors you are going to hit only wants to know how much ROI they will be getting not what framework you are using or are using MVC or not.
6. Sharpen up your figures.
One more thing that entrepreneurs don’t understand are investors are people who are playing in money all day long. So, when you talk with them in rounded terms like, “we did around $5 million in sales or we raised close to $4M in the last session”. It can make the investor believe that you don’t have accurate knowledge about your business. So always speak with the precision and accurate amount as much as you can. Always go for exact figures Like. “We did $4.7 million in sales last year”