The Art Of Pitching Your Company To Investors

As a startup, one of the most important things you can do is pitch your company to investors. But how do you craft the perfect pitch? Here are some tips on pitching your B2B startup to investors.

Research & select only investment firms interested in your market vertical.

It is critical that you research and select only investment firms who are specifically interested in investing in your market vertical. This avoids appearing like you are throwing darts in the dark and wasting everyone’s time. Start by creating a shortlist of potential investors. Look into the history of their investments, what type of start-up they invest in, their capacities, track record and reputation. Doing proper due diligence will ensure that you select an investor who can fulfil your funding needs and add value to your venture beyond just investment.

Research the background of the investment partner you will meet with and create a personal connection in your meeting.

It is important to do your research before meeting with an investment partner. Knowing experiences, past and current investments, and hobbies provides insights into the individual. This can help foster a personal connection. In this way, you show you care enough to put in the effort to create a strong relationship. Understanding their background can also provide confidence when introducing yourself, putting them at ease and helping pave the way for a successful encounter.

In the meeting, demonstrate why you want this investment firm to be a part of your round of investment funding.

Making this investment firm a part of your funding round must show exciting potential for the company, not only in the monetary aspect but also in the relationships and resources the company can gain from partnering with them. With their wealth of experience and knowledge in the investment sector, you must believe they could offer valuable insight into helping you to make the right calls on various aspects of growth. Their extensive network can expand your access to other beneficial investments (past and present), as well as essential advice and information. Together, the collaboration can provide benefits beyond money that would affect the progress of the company.

Avoid too much technical information, concentrate on the market value, need, and going to market strategy.

When presenting any product, service, or venture to an investor for potential backing, it is essential to convince them based on market merits and execution and not on technical features. By focusing on the market value, need and a strategic plan for bringing the concept to market, it will be possible to convince investors of the soundness of the idea. Explaining this in terms that are easy for anyone to understand will help create a clear picture of what aligning with the right investor can achieve.

Have a well-substantiated ask in mind and how you will use the investment.

When formulating your Ask, be sure to have a detailed breakdown of what your request-for-funds are covering. Consider building some extra runway (things always take longer and are more difficult than you expect). Doing this due diligence not only shows you are a prudent manager of resources, but that you understand the flight risks associated with launching a business and are addressing them. Your willingness to buckle down and plan for the worst-case scenarios marks you as someone who can anticipate potential issues—and then remedy them. It is equally important to show which milestone(s) are being achieved with this investment round and when you expect the next investment round.

Demonstrate that you have thought about your Exit-Strategy

It is imperative that you take the time to research and analyze potential target companies if you think that your most likely Exit will be an M&A strategy. Be sure to identify their strengths and weaknesses relative to your organization so that you can understand why they may be a viable candidate. M&A is a much more likely Exit-Strategy versus growing the company and going public. Avoid growth hyperbola because good VCs know you will not be a $200M company in two years. Trust me - this never happens.

If you have specific M&A target in mind (or multiple), then develop an early strategy to have joint business initiatives. Have detailed plans in place for aligning each target’s existing infrastructure and policies into your own. If done correctly and M&A exit - should it happen - will be a much easier sell.

Summary

When you are looking for investment firms, it is important to only look at those who have already invested in companies like yours. This will give you the best chance of getting funded as they will already be interested in your market vertical. You should also research the background of the investment partner you will meet with and try to find a personal connection. In the meeting, demonstrate why you want this investment firm to be a part of your round of investment funding. Avoid too much technical information, concentrate on the market value, need, and going to market strategy. Have a well-substantiated ask in mind and how you will use the investment. Demonstrate that you have thought about your exit strategy. If these sound confusing, I offer pitch coaching services where we can work together on The Art Of Pitching Your Company To Investors

Visit https://www.Alpha-Consult.com/our-solutions to learn more today.