What do you do if your startup is struggling to attract investors?

Your pitch is how you sell your idea to investors. If it's not rock-solid, you're not going to snag their attention. It needs to be clear, concise, and seriously compelling. Investors are busy, so get to the point quickly. What problem does your startup solve, and why should they care? If you can't nail that, it's time for a do-over.

Advising and running startup accelerators across 23 countries, I come across many founders that struggle to attract investors. And their first thought they often what to say in a better way and how to make the deck look better. This is a counter-intuitive way of thinking. These things have nothing to do with ‘attracting investors’. The first things to think about when refining any pitch is to ‘show’ more of the key proof-points an investor needs to see, and to de-risk all the risks they see. Ultimately, you need to understand why the types of investors you are aiming to attract invest in the startups they do, what they look for and how you can create a narrative with all the right proof points and minimise as many risks as possible.

Finding an investor is in many ways a matter of luck and perseverance. Many pieces need to come together: the right investor, product or service, timing, pitch, industry, overall macro state of affairs in the world. Network. Learn. Listen. Iterate. PROGRESS. ONE STEP AT A TIME

Keep in mind you are in control of it, you are the expert in your field and the only thing you need to do is to let an investor understand what you do in clear and concise way. Yes, you need to adapt it to your audience and research it beforehand but this you need to keep in mind.

Showcase a unique value proposition and thoroughly outline your target market's size. Clearly articulate a well-defined path to profitability, instilling confidence in investors about your business acumen. Infuse passion into your presentation, allowing investors to connect emotionally with your vision. Regularly refine your pitch based on feedback, ensuring it remains compelling and aligned with evolving business dynamics.

Business model is how you make money and will let investors understand the size of the market you can obtain. They would expect fast growth so you may want to keep your BM light like subscription plans or transaction fee etc

Clearly communicate how your model ensures scalability and maintains a competitive edge in the market. Consider strategic partnerships or collaborations that can strengthen your business model and attract investor interest. Regularly update and refine your model to align with market trends and investor expectations, showcasing adaptability and foresight.

Leverage LinkedIn, Twitter, and other relevant platforms to build a strong online presence. Engage with industry influencers, share insightful content, and participate in relevant discussions to enhance visibility and credibility. This proactive approach can organically attract investors who resonate with your startup's goals and values.

If your StartUp is failing to attract Investors you need to assess if your Business is Scalable and has a proper GTM Strategy. If you have both these points and are able to self finance or finance through Friends and Family you may still be ok. But do keep a strong eye on the finances. This will also decide your next steps for the StartUp

se gathered insights not just for adjustments but to showcase adaptability in your business plan. Extend engagement beyond mentors and industry experts by tapping into networking events or online forums. Leverage success stories from fellow entrepreneurs who secured funding, incorporating proven strategies into your approach.

Enhance investor trust by not just improving transparency but showcasing a proactive approach to challenges. Develop a concise, visual representation of financials for clarity. Demonstrate adaptability by outlining contingency plans, instilling confidence in your risk management strategies. Leverage storytelling to humanize challenges, making your startup's journey relatable.

Offering incentives can be a dangerous game, yet it has shown promising results utilized the right way. According to DCR Strategies, companies utilizing incentives reported a 79% success rate in achieving their goals when the correct reward was offered. High fail rate is often due to misinterpreting market demand. The right incentives create differentiation and appeal more to investors. It's not just about having an innovative idea; it's about presenting it in a way that resonates with those holding the purse strings. It's always good to craft unique incentives that align with investor interests. Having an open discussion when the conversation is stuck is not the worst idea. Often it will be interpreted as "I want you, help me get you".

Craft Compelling Stories: As a startup growth consultant, I advise refining your narrative to captivate investors emotionally. Highlight your unique value proposition, addressing pain points and showcasing potential. Tailor your pitch to resonate with diverse investors, emphasizing scalability and market opportunities. Crafting compelling stories not only attracts investors but also instills confidence in your vision, increasing your chances of securing funding.

If a startup is unable to attract investors, then first of all the founders need to focus on attracting more paying customers Investors are drawn to startups that can demonstrate a clear path to revenue and profitability. Second, see if it is required to redefine the products or services that customers really want at any cost for that you must spend time in the ground market to understand customer behaviour because of a mismatch between the product or service offered and the market's needs. Focus not only enhances the startup’s appeal to investors but also strengthens its foundation for long-term success.

There are Growth Advisory companies that can help you reach your goals much quicker. They help you find and solve common issues such as GTM strategies, Fractional CTO, CIO, and CFO executives that have already successfully navigated the road you find yourself on. As a founder, you need to spend your cash wisely; these companies can help you reach your goals quickly using the most efficient approach. This translates to huge potential cost savings for you in the long run.

Unless you already have one or more successful exits and a strong network of investors, you're basically starting from zero. In this case, the 2 most important things you can do (in parallel) to attract investors are: 1) Build your product and business! Traction, revenue, and progress are everything for a startup. If your business is growing, your need for investment will go down as the interest from investors goes up. 2) Build your investor network. Tap your network and ask for introductions. Be active on Linkedin. Go to startup events. Always be networking. Investor relationships are built over time. Be patient while you grow your business.