Pitching to potential investors for the first time can be one of the most terrifying and nerve-wracking experiences any new entrepreneur will ever go through. However, it may not be your first time, not if you thinking about it abstractly. The reason for this is, trying to get people to invest in your startup has a lot in common with trying to get a beautiful person at the bar to go on a date with you.
How? Well, the nerves will be the same, the possibility of you mincing your words can be high, there is bound to be a lot of competition swirling, and this competition may have ‘more’ to offer than you do. Perhaps they have a more detailed business plan or a more experienced board of advisors, or maybe they just have luck on their side and have exactly what that specific investor is looking for. Luckily for you, all this is irrelevant—the competition is irrelevant—and that is because all you need to focus on is you, and matching with the right investor.
That is where research comes in. Chances are you have a long list of potential investors, so now it time to narrow this list down, or put them in preferential order. This does not mean putting the biggest name at the top. The reason for this is, you are new to business and entrepreneurship, and that means money is not your only focus; experience and advice are. So make sure you align your needs with your investor’s skills and history.
Once you know who you are going to pitch to, it is just about doing it right:
We Live In An Age Of Simple + Disruptive Ideas
Uber, Airbnb, LendingClub; these are simple and yet genius ideas, and it has set a trend of what investors want to see in a pitch made to them. As such, you need to ensure both your idea and your presentation is slick and quick, and of course great. But having a great idea is not enough, you need to be able to present it correctly too, and this starts off with the way it looks and feels, so why not have a look at free presentation themes to see which one suits your needs best. Once you have done this, your pitch is all about the way it flows. That means cut out the technical jargon in favor of simplicity. There is nothing worse for an investor than to feel like you are condescending or overly complicated. They are meant to be the experts, so to feel uneducated will hurt their egos. You need and want the investors in front of you to understand what your proposed business is about, and to understand what opportunities there are for growth, and you need to do this without giving away too much before they sign on the dotted line.
We All React Better To Storytellers
The role of an investor is to listen to pitches, which means they listen to dozens and dozens a week. Chances are, these pitches roll into one big blur. That is the nature of it. That is why it is so important that you make yours memorable, and the most exciting and effective way of doing this is to make a story out of it. Stories are a universal attraction, they have an innate way of commanding attention and making people want to listen, and listen well. Investors try and scrutinize every pitch and determine the details, but with stories, they will simply enjoy your journey as an entrepreneur and a business. The trick is to make sure the story is relatable, memorable and not too convoluted. Investors get bored easily, and investors can smell bullshit. So make sure your journey is interesting, and make sure you come out likable. Both of these are going to have a huge impact on the outcome of your pitch.
The Millennial Way Of Thinking Is Taking Over
Ask any millennial worker about what they want from a career and they will say they want a reason. It is part of being a millennial; it is ingrained into their way of being. They care about the world, the state it is left and the positive impact we have on it. Say what you want, this way of thinking has a bigger pull than you may think. As such, include a philanthropic bonus into your pitch. Investors are prone to be attracted to the charitable angle of business, whether this is due to goodness or tax breaks. Investing in a business that is charitable is going to make them feel good, and it is going to make them look good, and both of these reasons are important to people. What’s more, having a cause that aids a specific demographic will help you align yourself with the right investor.
Confidence Is The Most Attractive Thing You Can Wear
It is, once again, a similarity that can be made with trying to win a date with that gorgeous person at the bar. Confidence is what is going to be the determining factor because someone who is confident in themselves is going to provoke that same emotion. It is so infectious. After all, if you aren’t confident in yourself—or in your business—how can you expect anyone else to be? But it isn’t just about confidence in you. It is about a balance. To confident can seem arrogant, and too desperate can be harmful, as can a confidence that seems uninterested. Let us put this clearly; if you are not interested in what the investors have to say then they are not going to be interested in giving you money. Of course, confidence is easier said than done, and so it could be that it takes you several pitches before you find that confidence you were hoping to embody. Nerves happen, it is fine, just work your way up to where you want to be step-by-step. The more confidence you learn to have the more esteemed the investor you can hope to land. Simple.
Mia Guerra
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