How To Pitch Investors

?? Hey, Alejandro here! Welcome to a ?? weekly free edition ?? of my newsletter. I focus on stories concerning entrepreneurs and venture capital.

Pitching investors is hot on the forefront of most entrepreneurs’ minds today. How do you get started, get it right, and ace the process of landing the funding you need for your startup?

Having raised money for startups, exited them, and after interviewing many of the most successful founders and angel investors on the DealMakers Podcast, I’ve got to experience both the struggles and wins in this area of startup life. Check out the steps below to begin pitching investors well, the additional resources provided, and always have a mind to learn how others are doing it well.

1. Know Your Why

Why are you seeking to raise money for your startup? What will it do for you? What will it mean for your venture?

2. Have Some Guidelines

While those with the money are mostly in control, it’s smart to start the process with some boundaries. Just like it is way better to know what you really need and have a budget before holiday shopping, so you don’t come home with way too much and end up having a heart attack when you look at your credit card bill and what it cost you.

So, what are you willing to give up to get this funding? How much do you really need and not? How much ownership are you willing to give up? How much control are you willing to give up? What will make it worth it? Where will you draw the line and walk away?

3. Who are the Available Investors?

Who is out there with the capital to potentially fund your startup? Look at friends and family, the angel investors, VC firms, accelerators and incubators, and even banks. Who has the money? Who is able to fund? Which appear to be actively funding and looking for new investments? Make a short list.

4. Pick Your Top Targets

Filter your list down again by weeding out those who may be not a good fit for this startup, current stage and amount needed. Which of those left on your list will bring the most value in addition to the money? Who do you think you would most enjoy working with on a daily basis as a partner in your company? Which of these do you think you can add the most value to as an investment in their portfolio?

5. Preparing to Pitch Investors

You’ve got to be prepared. You don’t want to tee up these great opportunities and then completely blow them. Don’t be intimidated. Don’t procrastinate. Do have the confidence that you’ve done your homework, are equipped for the task. If you haven’t made the effort to invest the little time it requires to do this, why on earth would they consider making such an investment in you?

6. Ask for Introductions

If you don’t personally know these investors or their representatives, then the easiest path forward is to get introductions to them from your current network. Who do you know that can make a warm introduction? Who is on your list that could introduce you by email or via LinkedIn?

A consultant, advisory board member, and other investors and founders you meet at networking events can all be gateways to these contacts too.

7. Start Pitching

Whether you’ve got the introductions or not, it’s time to get busy pitching. Don’t let time just slip by. Give yourself some deadlines and quotas.

If you have to cold pitch, then Twitter, LinkedIn and email can all be viable channels. As well as going through the front door application process for those who are accepting pitches.

Don’t get discouraged. Ou may strike gold right away. It may take a little while. If you keep learning, it will be easier and faster next time.

8. The Art of the Pitch

Everyone has their own style. Yet, there are some basic strategies and best practices that can help you nail this.?

• Be sure to show the benefit to the investor
• Be clear on why you are the one to invest in
• Make sure you’ve got your numbers right
• Show that you are coachable and flexible
• Project realistic, but bold outcomes and milestones
• Don’t come across as being needy

If you can go in with confidence and an auction mindset you can have better control of the conversation and make the round more competitive. Act as it is is a sure thing you will get funded, be humble in admitting you would like this investor to participate, but don’t need them or the money to make this venture a success.

9 Follow Up, Follow Up, Follow Up

Ideally entrepreneurs will begin planting the seeds of the pitch by updating investors far before they need to raise money or close on a round. That gives time to build trust and the relationship. Even if you aren’t getting the response you hoped for or expected, keep following up with updates if you really want those investors in. Some may not get in this round, but they may seek you out in the near future.

PS. check out ?? for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://alejandrocremades.com/silicon-valley-legend-creates-pitch-deck-template-for-entrepreneurs/