Council Post: 15 Effective Ways To Prepare To Pitch To VC Investors
Having a full understanding of what investors are looking for and how to best sell your vision has never been more important.
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Entrepreneurs face a major challenge in raising capital. In today's highly competitive market, it can be even more challenging to secure funding. Our members share their top tips for increasing your chances of landing an investment deal. To create a minimum viable product (MVP), you should use your own, partner, or family funds to start making some revenue. Good terms with no revenue are long gone. While flashy pitch decks can be great, in a tight funding market entrepreneurs must focus on the two most important components of their business: value and solution. What market problem does your company solve and what added value does it provide to the marketplace? Investors look for businesses with a clear value proposition, strong potential for growth, and profitability. -
Glenn Hopper
,
Sandline Global
Highlight what makes your business unique
Your technology, expertise, and/or product will make you stand out. Copycat companies are no longer a viable option for funding. Be unique and realistic about your spending expectations. Unprofitable companies are a red flag to investors. Consider the long-term vision for the business and the impact it will have on the target market. Also, consider the most important thing VC investors want: profits during liquidity events. If founders present a compelling exit plan during their pitch, it increases their chances of getting investment capital. -
Thomas H. Ruggie
,
Destiny Family Office
- Develop Your Survival Strategy
Startups have found it extremely difficult to raise capital due to tightening economic conditions. If founders want to increase their chances of raising capital, they should be able explain clearly their strategy to survive the next few years. Nish Patel
,
Inertia Ventures
Make a compelling business plan
Entrepreneurs can improve their chances of landing investment dollars by focusing on creating a compelling business strategy. It should contain a description of the product/service, a market analysis, competitor analysis, and a financial forecasting model. The Funded Trader
Prepare to Execute Your Business Plan
You must have your pitch deck ready, the team formed, and projections, as well as proforma, prepared. Your ability to execute your business plan is essential. Investors look for areas with high growth potential and innovative ideas. It helps to show that you are patent- and technology-savvy. Investors want to see that business owners are invested in their success. -
Joseph Lustberg
,
Upwise Capital
- Establish Clear Objectives And Your Value Proposition
You will not fail if you establish clear goals and a compelling value proposition. Many entrepreneurs fail to properly communicate to investors the long-term goals and benefits of their products. You should highlight the product's value compared to other products. Also, you need to ask yourself what your growth goals are. It is important to have a compelling value proposition and realistic goals in order to succeed. -
Anthony Georgiades
,
Pastel Network
For early success, build an MVP
Begin with a technical team who can develop an MVP at a low cost. Jaclyn Foroughi
,
Brazen Impact
Get Profitable Fast!
Your chances of getting investment are directly related to your ability to show profitability and a strong economy. Although "growth at all costs" can sometimes be funded in some cases, it is no longer an easy task. Show that you are a good steward for the investor's capital to get to profitability quickly. -
Aaron Spool
,
Eventus Advisory Group, LLC
All Things Can Be Measured and Tracked
Investors need to be able to provide compelling and accurate statistics. United Capital Source Inc.
Get your documents organized, updated, and ready
Organization is key to success. You will always be ready to make the first steps towards securing capital by having all necessary documentation at your fingertips. Backd business funding
Show Demand for Your Product
When you meet with VCs, make sure that you are able to prove product-market fit and have a plan for achieving it. You must ensure that there is demand for your idea, and that people will pay for it. Investors will need evidence that your product fulfills a demand, meets demand, and generates profits that are equal or better than those of your competitors. -
David Whyte
,
Irwin
Take into account the point of view of an investor
Before you approach capital providers whether they are banks, equity partners, or non-bank lenders, make sure you have everything in order. You need a clear, coherent vision for your business's future and current state, along with the data and logic to support it. Capital Ideas Inc.
Make sure your concept is scaleable
Every investor views an investment in a different way. It is important to determine if your idea is feasible. No amount of networking or marketing will get you funds if it's not. Your idea will not be profitable unless you find ways to make it money. An investor pitch will be easier if you understand the scalability of your idea. Investors want to make money. Plan for scaling. -
David Abreu
,
Pacific United Financial Group