By Fernando Berrocal

‍

As a startup entrepreneur, there are several tasks that can induce anxiety along your entrepreneurial journey–it's up to you to overcome them appropriately. One of them–and it's the one that the majority of entrepreneurs agree causes the most worry–is pitching to startup investors. This is a particularly stressful scenario, whether you're raising your first angel round, or are seeking venture financing as a seasoned pro. 

‍

‍

In this part of your journey, you will expose yourself (and your business) to a group of intimidating people for approximately 45 minutes.  Why?  So they can examine you, your startup team (if you have assembled one), and your business from every viewpoint imaginable.  In other words, you’re going to be evaluated financially. Those last three-quarters of an hour can make the difference between having a startup launch that succeeds, and one that will eventually fail into obscurity.

‍

It's critical for founders to polish their investor pitch, since there is so much at stake.  In the startup world, a single decision can mean the difference between accomplishing an objective or giving up. So, in this blog post, we have listed a set of suggestions that you may plan, get ready for, and give the ideal pitch.

‍

Finding the ideal investor for your small business should come first of all, and this may seem relatively apparent at the beginning of planning a startup. Many small business owners believe that a pitch begins when you shake hands with an investor–and launch into your 15-slide pitch deck. However, the harsh reality is that you may make or break an investment even before you enter the workplace. When you choose an investment, the result is frequently predetermined.

‍

‍

What gives, though? It's just business and personal chemistry. Do not take it very seriously since, like in love, sometimes a person thinks he/she has chosen the right alternative (when that's far from the truth).  Not every investor will be eager to support your business. You might be the next startup unicorn in the marketplace, but if the person or people you're pitching your business concept to don't connect with it, they won't give you any money regardless of your attempts.

‍

How can you be certain that you are presenting to the correct investor then? It’s simple: do your homework before setting up the meeting or even choosing to contact out. Dig deep and find out as much as you can about potential investors, such as their business background, their interests, their professional network, and their temperament. And as you do, try to forecast as accurately as possible. Think about whether or not they’ll resonate with your business idea and model. Decide whether you’re more likely to click or clash on vision and timeline, and learn what you can about their response to setbacks. Along the way, be honest with yourself about whether or not you want them as a partner.

‍

Get Your Pitch Deck Ready: It's time to get ready if you've located the ideal investor along the way. The ideal approach to achieve this is to draft a 20-slide pitch deck in which you must describe the issue you're trying to address:

‍

• Your suggested remedy, and a detailed description of your offering.
• Your intended market and company plan.
• Your budget and exit strategy.

‍

‍

It takes more than merely pasting data onto a PowerPoint slide with a few eye-catching images and financial graphs to create an outstanding pitch deck. It necessitates strategic business planning, deliberate word selection, and intentional design. Your pitch deck, when used appropriately, can serve as a fantastic visual accompaniment to your business presentation. It can aid the investor in understanding your business concept, visualizing your market data, and connecting with you personally during your business pitch.

‍

Tell Your Narrative to the Public: Inspiration and excitement should be the goal of your pitch. However, it can be pretty stressful and challenging, at the same time, to achieve that when a pitch is so heavily reliant on statistical information, market trends, and business projections. Due to this, it's crucial to occasionally take a break from the statistics and concentrate on the wider narrative you're attempting to convey.

‍

Consider your entrepreneurial journey in this case. What kind of issues motivated you to start your company in the first place? Which achievements have you accomplished since then? What failures have shaped or transformed your business? What matters most is where you are heading right now.

‍

These are the items you should mention in your pitch and display in your pitch deck. It will not only catch your investor's attention and keep them attentive throughout your presentation, but it will also establish a logical flow for the pitch itself.

‍

Focus Your Attention on the Specifics:  When discussing your business strategy, your startup team, your financials, and your future projections is arguably the most crucial thing you can do during a pitch meeting. Investors don't just give money away for outstanding ideas; they require preparation and structure. They want to be sure that there is a solid strategy in place to generate revenue for them or their groups.

So it stands to reason that the data should support your argument. It should be clearly discussed throughout your presentation, and your pitch deck should visually illustrate it. It ought to be brought up in Quality Assurance (QA) meetings and brought up in upcoming discussions. The investor will be more confident to collaborate with your business and provide funding for its operations the more frequently and clearly, you can present this data.

‍

Describe Your Investment Needs in Detail:  One common error founders frequently commit is being evasive when discussing their finances. Undoubtedly, asking for a certain sum of money might be quite scary since there's always a possibility that the investment won't pay off. However, it's crucial to be assured and specific in your request. 

‍

Investors want to see that you have considered your financial demands in addition to knowing exactly how their investment will appear. At the same time, it's crucial to demonstrate to them where you plan to be after using their funds because doing so fosters confidence. Although funding may not be guaranteed at this level of specificity, it will allay fears and inspire more faith in your business model and fundraising tactics.

‍

Get Ready for a Q&A: No matter what, your investors will have questions. A chance to address concerns before you leave will be provided if you anticipate those inquiries and have clear responses. How do you prepare for that question? There are several options. Consider your pitch presentation first. Is there anything that could require more explanation? Consider your pitch from the perspective of your investor. Do they have any particular worries about your market? Do you think they'll have any problems with your business plan? Make a note of any prospective queries and worries, and consider how to effectively respond to them.

‍

In the end, making a pitch to investors is a crucial phase in the development of every firm. However, what distinguishes successful firms from others is knowing how to do it properly. The secret is to carefully select your investors, then plan your pitch and deliver it.

‍

Ready to bring your startup to the next level? Apply to MassLight’s next batch. MassLight supplies capital and a dedicated tech team. We take equity in return. Have questions? Refer to our FAQ page.