The world of investing is one that most people know nothing about. You might be inclined to think that if you’re an entrepreneur or CEO, then this doesn’t apply; however, without knowledge of how things work, investors will likely pass on your idea because they don’t want any part of it!

But here we are with some good news for all those entrepreneurs out there who are looking at raising money from individuals as opposed to institutions like banks and other finance companies – pitching them successfully isn’t nearly impossible when armed with the right information (and maybe even a little trial-and-error). 

Understand what investors are looking for.

What they want to see: how you plan on acquiring and maintaining clients (if it’s a business or product), an analysis of the competition, what strategies you will use for marketing purposes; everything that can help them understand if this investment is worth their time.

And finally…they are looking to see if YOU as the CEO, entrepreneur or business owner will be around for a long time. If you’ve already failed with other ideas and companies, then this is going to stick out like a sore thumb. 

They’ll likely pass on investing in your company because it would just be too much of a risk (and we know first-hand that most investors are looking for the safest possible place to put their money).

Create a pitch deck that is clear and concise

Your pitch deck should be clear and concise, with an attention-grabbing elevator speech that can convince potential clients.

The first thing you need is a great idea for your product or service – this will set expectations of both quality and price range in the minds of those listening to hear more about what you have got going on! 

Next up: The visuals… think big; use colour schemes whether they suit the design aesthetic better than black text over white imagery etc. Finally, don’t forget about including some numbers – this will show that you have done your homework.

If you’re presenting to more than one person, limit yourself only to the most important points! For example: “The benefits of joining our company are too long to list”.

Research the investor 

Find out their interests and where they’re from because this will help determine how best to approach them about the available investment opportunity. .

If an investor seems hesitant to invest, then it is probably not a good idea to keep pushing them towards this decision – it’s important to pick up on these things early so don’t lose hope if someone isn’t quick to jump. Onboard! Remember, they are in the business of making money, and sometimes that means not taking a risk.

It’s important to research investors before you reach out to them and conclude whether or not it is worth reaching out at all. For example: if an investor only works with companies focused on video games, then your company should not waste their time or yours.

Send your pitch to potential investors 

Once you’ve done your research and got to the point where you are happy with what is being said in your pitch deck, it’s time to send out those emails! You should contact people who have invested in things similar to whatever industry or product/service you are pitching. 

Send them an email introducing yourself along with a summary of what you are offering and why they should be interested. It’s important to remember that investors get a lot of pitches, so don’t expect them to respond right away! If you have a great idea, it’s time to get out there and make your pitch. Send the perfect email introducing how investing will benefit from this opportunity for years into the future!

Conclusion:

To sum up, everything we’ve covered, you want to make sure that when pitching your product/service – the information is concise and understandable while giving enough detail for someone to get excited about what it does or how it works without overwhelming them with too many technical words etc. Remember that many, many factors go into making a successful pitch – but through following the golden rule—practice makes perfect!

Who are venture capitalists? 

And what do they want from startups?

The first question is easy – venture capitalists are investors who invest in private companies. They take a percentage of ownership in the company and help it grow by providing money, experience, and resources needed by growing startups.

Most early-stage investments are made through funds run by professional VCs. These people usually have at least ten years of experience working with startups, so when you’re talking to one of them (in the context of funding round), remember that you’re talking to someone who has a decade or two worth of advice they can share with you about how to succeed as a startup.

That should be motivating enough to impress VCs – if any of this sounds like “a challenge,” remember that VCs see thousands of startups a year, and they’re not just going to throw money at everyone.

If you impress them enough with your team, product, traction, and overall potential, it should be obvious why they would want to support your business. 

What Are The Things Venture Capitalists Look For In Startups?

Here are the most common points they consider:

1) Market Size and Growth Potential 

Venture capitalists want to invest in your idea only if they know there will be many people using the product. They need to see how much potential for growth you have and its size as well.

2) Business Model 

When starting a business, there are two types of models you can work with. You could start an online or offline business, and the choice is up to personal preference! However, investors might ask what you plan to do with their money once they provide funding for your company.

3) Team 

Having a good team is the most important thing for VCs. Teams that can execute what they intend to do are attractive to them, and those who can’t will have difficulty raising funds with their business plans. 

A track record of past successes is also an attractive factor for venture capitalists, but it doesn’t mean that you cannot get investments from VCs if you don’t have any success in your background. 

Rather, some investors take great interest in startups led by experienced entrepreneurs because they already have ideas about building a startup into a great company even without prior success records.

4) Competitive Advantage 

What makes your product different from others? Competitive advantage could be identified in various aspects such as business model, technology, or market factors.

5) Investor Track Record 

Investors with a good track record in the past are more attractive to VCs than new ones without any portfolio successes. New investors can still raise funds, but it is much more difficult because they don’t have an established reputation or know what makes these companies successful.

Last Thoughts

You should not be intimidated by the idea of competition because it is good for you. Investors will ultimately give more attention to companies with competitors, and if there are more startups, they’ll have higher valuations on average.

Therefore, do not spend too much time worrying about other startups because you will not delay the inevitable. Instead, build something great, focus on your product and show it to investors. 

Venture Capitalists are looking for opportunities to have that “big idea” breakthrough; however, it is sometimes better to solve a smaller problem with wider appeal. Chances of success might be slim, but the reward can also be great – and more likely than not, you’ll make your investors happy in return!.