17/07/2015
Get Funding:
This is How to Pitch That Business Idea to Investors
Of what use is a great business idea that the world doesn’t get to see come alive? Since businesses do not thrive on ideas only, but also on sufficient funds, it is just important that an entrepreneur needs to master how to pitch to venture capitalist, angels, or any other investor with deep pockets through an effective pitch deck.
These are 5 ways on how to pitch a fantastic idea to investors and get funded.
1. Lay out the problem, and then the solution
Right after giving a short and smooth introduction of yourself, delve right into the problem. Make the investors see how annoying and frustrating the problem can be. Understanding how to pitch to investors involves making them agree with the problem presented. If investors are able to agree with your problem, they will always want to listen to your solution.
Then, present the solution smoothly leaving out the technical details at this point, simplify the solution and let them understand your value propositions.
2. Expound on the product
Like they say, the devil is in the details. Roll up your sleeves and explain the product in details. If you want to pitch ideas to investors successfully, you should talk about your business model, technical information, work strength, marketing and sales plan, competition, financial projections, and other important metrics.
Simply get across to them how they are going to make money or enjoy any other benefit(s) through your product.
3. Water it by revealing traction
If you want to pitch to investors convincingly, you should get a measurable number of customers that indicates a potential for success. Determine, or at least try to predict correctly the size of your target market.
4. Reveal your funding needs
You have been jabbing all the while, it’s time to hook. This is the core of the pitch. State clearly how much is needed to take you to the next level, why you need it, what it will be used for, and how you will manage it. If you want to pitch to investors, it is very important that you also reveal previous investments and ownership percentages, if any.
5. Adopt the 10/20/30 principle
Don’t hang your idea with the noose of PowerPoint. Use the 10/20/30 principle if you want to pitch to investors. The principle states that your presentation should be no more than 10 slides, last no longer than 20 minutes, and include text in font no smaller than 30 point.
Finally, remember that if you want to pitch to investors, you should tell stories that reveal you are really passionate about the product you want them to invest in. Let it glow in your speech and behaviour.
