Entrepreneurs often get stressed when the time to raise capital for their companies comes. It is a very challenging moment, especially when we talk about first-time investment from angel investors or VCs. The competition is tough and the stakes are very high, so it is important the entrepreneurs to be well-prepared, to pay attention to every detail and to make sure they embrace every opportunity when it comes their way.
Networking and pitching events give the chance for the attending startups to meet with prominent investors, to present their businesses and to increase their chances of securing funding. To make the most of the opportunity, make sure that you are prepared well – know your audience, know your numbers, stay focused and you will be successful. But if you want to be even better, follow the next five ways that will help you to attract angels and VCs to your startup.
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Be different
To get the attention of investors, solving a problem with your product or service is not enough. You should be able to bring solutions in more effective way that distinguishes you from the competition. Make your solution cheaper, faster, more reliable and unique and you will bring more value to the customers. Investors target startups that are different and better than the rest.
Craft the perfect pitch
Undoubtedly, if you want to get the attention of the investors, you need to position your business in the right place. To stand out from the crowd at every networking and pitching event, your pitch should be well-crafted – make sure that you include all important information, that you rehearse the presentation well and that present with confidence. Know your audience and be prepared for the Q&A session, because that is the most important moment of the whole pitch.
The Dream Team
Ideas rarely impress the investors as much as the well-crafted action plans and execution strategies do. Investors are interested in startup teams that are built from talented people with different skill sets, who are able to work together well under pressure. The capability of the team to deliver the results that will lead to turning the company’s mission and vision into reality is a good enough reason for the investors to put their trust into the business.
Have an exit strategy
Investors are very interested in the development of the business, but mainly tend to focus on the way and timeframe, in which they will receive back their investment and will make a profit from it. Excite them with your exit strategy and highlight how promising your startup is with your descriptive and informative plan.
Ask questions
Entrepreneurs can easily understand if an investor is interested in their company. If the investors ask a lot of questions, it means that they really want to know more. In most of the cases this is a good sign. But many of the investors expect the same from the entrepreneurs. If an entrepreneur has questions that are truly important, it will prove that they are really serious about their entrepreneurial journey and are well-prepared, willing to take the best decisions for the company.
