6 Things Entrepreneurs Should Know When Pitching To Investors

Every day, I meet a good number of people who come into the Hub to find out how they can benefit from our community. And so naturally, I have developed a sixth sense what their inquiries is going to be on regardless, of race, gender, countenance or finesse. The persons who stood out for me were those who came in prepared with a specific inquiry, and knew how to go about finding answers to their challenge. I realized that these people understood an important sales principle: always be closing.

Time is money.

This is an important principle to employ when you are pitching your product to a Venture Capitalist or an investor. To successfully deliver your pitch, you want to consider the following:

1. Craft a Summarised and Compelling Business Summary: Especially with your business summary, keeping in brief and compelling is a craft you need to hone. This is your opportunity to create a coherent and persuasive detailed executive summary showcasing your Value proposition, revenue model, User, customer acquisition models, your marketing strategies etc. Before you begin your pitch, you have to understand that investors and Venture Capitalists (VCs)are in the room ultimately to invest in a business that will yield returns within a time frame. So, as you come in to meet with them, ensure you have thoroughly covered this by doing your homework.

2.First Impression Matters: In addition to making an impression with your business summary, you want to make an impression with your PowerPoint presentation. Your presentation should engage and be kept concise.This means that you should leave a lasting effect within the allotted time to connect with your potential investor. This requires a great deal of practice on your communication and interpersonal skills. Use humour where necessary and ensure that your visuals clearly communicate what your product or service does.

3.Come Bearing Facts: It is true that you have a unique product which you presume will be unanimously adopted by 160 million Nigerians because it is solving a pressing problem. However, note that both investors and VCs come with experience and know better that this may not be completely true. To avoid failing the pitch even before it’s started, get your facts together and get them right.

4. Embrace Risks: Be open with potential investors. No serious investor will be willing to sign agreements for a proposal he/she will most likely see elsewhere. Asking that he/she signs a non-disclosure agreement to be signed or be discrete about your strategy is a huge turn off as no serious investor would be willing to deal with unnecessary lawsuits either from your startup or from any other startup they are likely to meet in the future.

5.Show Them The Exit: During your pitch, answer the unspoken question on the mind of any investor. ‘How will I make money within said time frame? You want to come ready to explain your revenue model and how you intend to apply it.

6. Listen: As you make your pitch, there will be questions on your idea, your business model around it and strategy to be implemented. All of these are to justify their investment. So, do not take the defensive stance. Instead, keep an open channel, listen and respond accordingly. You do not have to have all the answers right away but you must listen.