There are ‘many firsts’ in the journey of an entrepreneur.…
You are extremely familiar with your business model as a startup. In fact, you know it inside out and you are so much in love with it that you cannot stop elaborating on it when you talk to others. However, while talking to an investor, you need to be very careful about what and how much to share. There are some ground rules you must keep in mind when you are asked to pitch to an investor. The fact is that out of every 1000 proposals, only 10 get a chance to pitch to an investor and thus you want to do it right!
Here are five things we feel you should know about pitching:
The time required to pitch
What is the ideal time a pitch should take? You cannot go on and on and bore the investors with your company story, neither can you be so precise that important aspects of your business are left unnoticed. Before you go to pitch, it is important to practice with a timer that which part of your presentation will consume how much time.
What all to disclose and emphasize about the company?
This is directly related to the first point. Since you will have limited time to pitch, you must know how much time to spend on what aspect of your business i.e revenue, product details, target audience etc. It is important to know before hand what would interest the investor.
How much money to raise?
Many times entrepreneurs give high figures to raise capital, but may be this is not a good idea. Asking for more capital is a double edged sword. An investor will always end up buying more of your company if you ask for more money. So think before you quote any amount.
Be a trophy to be won by investors
It is important to be enthusiastic yet pricey while you are pitching. The investor should feel that you will be an asset if he invests in your company. So do not plead and over convince the investor to bet on you, rather make him believe you are the best bet.
How to follow up after a pitch?
You are the one who needs the money and it is the truth that you will end up doing all the chase with the investor. It is essential not to sound desperate and hence we need the right process to do it.