6 Proven Tips to Craft an Effective Startup Pitch for Fund Raising

As a new entrepreneur, your pitch to investors could be the only thing to get your startup to succeed or totally plunge your good idea into the abyss.

As a new entrepreneur, your pitch to investors could be the only thing to get your startup to succeed or totally plunge your good idea into the abyss.

It matters a lot! From statistics available, investors will only fund 1 out of every 10 pitches they listen to.

As we can see, the odds are stacked against new entrepreneurs in this regard.

However, you can beat those odds by crafting a great pitch that could turn heads and get your idea funded. You want to know the right way to pitch?

Six amazing tips to help you craft an effective pitch

1# Your Pitch is Better Delivered as a Story

Storytelling is a proven way to capture the attention of listeners and hold it.

A well-delivered storyline could make your pitch unforgettable. Most investors are easily bored with complex spreadsheets, graphs, numbers, and valuations.

They know how to get such information if they need it.

On the other hand, the pathos and story behind your business idea can only be relayed by you and not by any term sheet. People, even the most data-savvy investors, love a good story.

Tell your story in the right way, capture the attention of your potential investors, and the needed funds will simply follow.

2# Choose the Audience Carefully

It is important to do some findings of an investor’s interest before pitching your idea to him/her. As a new entrepreneur seeking for funds, pitching to unwilling investors is a waste of time.

According to business experts, angel investors should be the prime target of pitches by startups.

3# Prepare a Simple yet Concise Pitch

A presentation is a crucial aspect of your pitching. Unfortunately, many entrepreneurs don’t know how to prepare a quality presentation.

Many even have the misconception that using business jargons can benefit them in terms of catching the attention of potential investors.

Nothing could be further from the truth!! Actually, the main purpose of your pitch is to show the business objectives and then examine how funding could expand it.

As a result, the pitch has to be delivered in simple and understandable language.

It should be prepared in such a way that a layman, who may be your investor, can understand it. Craft a simple and concise pitch. Go straight to the point.

4# Set Realistic Timelines

Businesses work on deadlines. Therefore, it is very important to add timelines to your pitch. Don’t forget to set realisable goals and realistic timelines for these.

This will show investors how passionate you are about getting the necessary support for your startup.

The more passion you exhibit for your business idea, the more enthusiastic potential investors will be to commit funds into your project.

Besides, investors will want to know when to expect returns on their investment. Hence, it is good to set sensible timelines for your business and inform investors about these.

5# Talk About Sales

As a budding entrepreneur who has just started finding his feet and recording sales, speak up about this when pitching to investors. Mention the sales figures and try to explain them within specific time frames.

For example, saying that you made $50,000 within 4 months shows potential investors how you are getting sales and that investing in your startup could benefit them. After mentioning the sales, you should be prepared to answer questions like “how you intend to maintain the sales”, among numerous others.

Your business is bound to expand when investors put money into it. So, your pitch should explain how the startup will further increase the sales after receiving funds.

6# Be Bold

Your pitch should convince investors about how the infusion of funds will help achieve your business goals. You need to be courageous to explain your points step-by-step and answer all questions with patience. Investors will love to know how their investments will yield nice profits.

To deliver an effective pitch, you need to boldly tell potential investors how the financing will shake up the industry and reap bountiful rewards for everybody.

Lest I forget, your pitch must contain such details as: –

  • Your product/service
  • Target market
  • The demographics
  • Business model
  • Marketing strategy
  • Competition
  • Team
  • Required funding and timelines.
  • The Exit for Investors

In addition, consider these useful points as well:

-Your pitch should be concise and appealing. Ten minutes is enough to sell your exciting idea.

-Dress smartly. First impression matters in business.

-Practise your pitch again and again, and master the key points.

-Anticipate questions and prepare your answers very well.

Funding is the purpose of pitching. Therefore, an effective pitch should contain what an investor wants to hear.

Don’t hesitate to use the tips outlined above to craft a simple yet successful pitch.

6 Proven Tips to Craft an Effective Startup Pitch for Fund Raising

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