Pitching to investors in a correct manner is an essential for every start-up because that is where the major funding comes from. There is an extensive list of do’s and don’ts to follow while pitching to an investor. One needs to identify the market segment to enter, the kind of target audience they’ll be approaching, the problems the business is likely to face and key revenue streams. However, along with a basic business plan, a start-up also needs to make sure that they are able to convey the passion and confidence in them to the Venture capitalist. These qualities help an entrepreneur to strike a chord with the VC at a higher level.
Personalised data leaves an impression on the VC
Every start-up is ready with a pitch and a plan which consists of statics, market conditions, income channels etc. However, if you want to win the deal, you need to go out and do something different. Try and personalise the data for a particular VC you want. For that create personalised statistics for them such as how much the investor should invest and why? Also, include what they’re getting out of this investment.
This will help you in striking a personal chord with the investors who will be more likely to invest in your company. They’ll believe that since you’ve gone that extra mile to impress them, they are bound to get some benefits out of you. More than just benefits, it’s all about making the VC feel special.
Related post: 8 qualities every entrepreneur requires to be successful
Build narratives around your product
The data provided by every start-up is almost similar in terms of the business plan. As a budding entrepreneur who needs the funding, what you can do is narrate a real life story.
For instance, if your product is sanitary napkins, you can build a character and a story about a woman who is very career-oriented. Despite that, once a month she has to take a break from work for two days since she needs to deal with the heavy flow and hates using tampons. Hence, your sanitary napkin shields her on such days and provides her with comfort and continuity at work.
If there’s a woman in your investing team, she is more likely to relate to the story better than a normal pitch. If your story manages to strike a chord, you are more likely to get a deal.
Try and balance the genders
According to a study by Babson College, 34 per cent of firms with a woman partner are more than three times as likely to invest in companies with women CEOs, compared to just 13 percent without a woman partner.
Women are catching up on the entrepreneurship front and they deserve some recognition. If you’re a start-up with a team, try and get more women in your team as it not only balances out genders but her presence also acts as a great boost to your team.
Continuing with the example of the sanitary napkins, since it is a product developed for women, VCs are more likely to believe in your product if you have a woman who actually approves it.
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