How to Pitch to an Impact Investor ?
Mohamed Reda
Co-Founder & CEO | Event Management Expert | Ecosystem Builder | Partnerships, Strategy & Advisory in Education & Ed-Tech | TVET Expert | Creator of Opportunities | Driving Innovation and Growth Across MEA & Africa
Making the Pitch
Entrepreneurs can best position themselves and their businesses for capital by following these tips:
1. Don’t over-invest in your PowerPoint.
PowerPoints and models are nice to have, but invest more time proving you can run an enterprise soundly. Showing you’re aware of your competition (both current and future) is key.
2. Build the investor’s confidence in you and your management team
Impact investors are in the people business; they want to understand who the entrepreneur is and see emotional intelligence, passion and integrity.
3. Don’t overestimate your growth
Be prepared to hit 40% growth instead of 80%, and sensitize your projections accordingly. Panelists resoundingly agree projections never come close to reality. Hearing “Everything’s great- look at how fast I’m going to grow,” is an automatic put-off says Harold.
4. Demonstrate you can deal with problem cases
Inevitable pitfalls will arise; show you have the flexibility to adjust and will react wisely to stress and business threats. (Consider how you’ll react if your original concept doesn’t play out or if it’s uncertain you’ll make payroll.)
5. Show you are coachable
Loans are risky and investors seek people who are coachable and listen to counsel. Successful entrepreneurs admit when they don’t know what to do and seek expertise and advice.
6. If you only produce one return, make it social
“Even if your venture isn’t as profitable as expected, make sure you can break even with a strong social impact,” advises Rob.
7. Have a sustainable exit strategy
As this is rare, having one will distinguish you from your peers.
Cofounder @ Zomra | Community Builder | Product Manager @ Jisr
9 年Khloud Qasem