Attracting Investors 101 for Startups – Part 2

In part 1, we looked at doing the groundwork necessary to make yourself attractive to potential investors. This included knowing your investor…

August 26, 2022

In part 1, we looked at doing the groundwork necessary to make yourself attractive to potential investors. This included knowing your investor, doing your research, and building a solid financial model that will impress any investor. In this part, we will look at what investors are driven by as well as how to make a winning pitch when you are looking for startup funding.

What drives investors is success rather than the idea itself

What draws investors to a particular startup is not the idea itself but the potential it has for success in the marketplace. That is why it is so important to prepare a solid business plan that shows investors exactly how you intend to grow your business and make profits in the future. If you want to attract potential investors, you need to demonstrate a strong competitive advantage over comparable products or services already on the market. If you can demonstrate that you have a clear advantage over your competitors, investors are much more likely to take a closer look at your business opportunity.

Your Business Plan speaks for you

If you are wondering what you should include in your business plan, let’s have a short overview: Include your company name, a brief synopsis of your company and the products you sell or services you provide, your target demographic and your ideal customer base, your sales projections for the first year, a detailed breakdown of expenses, a complete balance sheet, and a profit and loss statement for the first year. You should also provide detailed information about your team’s qualifications and experience as well as a breakdown of all your costs and revenue sources. This will give them a clear picture of how you will manage your business and how much money you will need to get started. It is also important that you clearly outline the goals for your business and how you plan to achieve them. Investors are much more likely to invest in a business with a clear plan in place for growth and future profitability. Finally, it is also advisable to provide a copy of your marketing strategy so investors can see how you plan to promote your business and attract new customers. Try to include testimonials from satisfied customers as well to help convince investors that your business has the potential to succeed.

Pitch the right way

Once you have prepared your business plan and are ready to approach investors for funding, you need to learn how to pitch your business in a way that will get their attention and make them interested in collaborating with you. It is important to remember that when pitching to investors, you are trying to convince them to fund your business and buy a stake in it. This means that your pitch needs to be creative and compelling to grab their attention and get their interest. Here are some tips to help you create a compelling pitch that will impress potential investors and get them excited about collaborating with you:

  • Do your research. Research the business to which you are pitching. Do your homework and read their social media pages to get a better understanding of their business and the industry they operate in.
  • Show that you understand their business and have a plan.
  • Make your presentation as visual as possible by using graphs, charts, and other data to back up your ideas.
  • Practice your pitch until it sounds natural. If you do not show confidence in your business idea, investors will not be swayed.
  • Wear professional clothing and a good suit or dress.
  • Focus on the audience rather than yourself when you make your pitch.
  • Prepare a list of questions that you expect to be asked during your pitch. Be prepared to answer tough questions. It is ideal if you brainstorm potential questions with your team before you pitch to investors.
  • Be confident and make eye contact with your audience. This shows that you are willing to connect on a human level and that you can be trusted.
  • Avoid using clichés and jargon. Investors can detect these and will see them as red flags or as unprofessional on your part. Use plain and unambiguous language.
  • Ask good questions at the end of the presentation.
  • Follow up with a thank you note after the pitch.

Following these tips will ensure that your pitch is successful, and you come away with the funding you need to bring your business to the next level. For more detailed advice, we at can help you with your pitch and how to prepare for it. Contact us today for more information on how we can help you!