It is a common situation that investors reject startups, but do not let this information discourage you. Take a look at the tips to help you present yourself to investors in the best possible light.
1. Choice an investor
You need to know who you are talking to. It is not a point to go from investor to investor and wait for someone to accept. Here’s what to look for when selecting:
- Does your idea fit into what the investor supports?
- What is his reputation?
- Can he lead you to other investors?
- How do the founders of companies in which he has already invested work?
- What is the success of previous investments?
The answers to these questions will help you understand whether this is the investor that suits you. Keep in mind that others will look at you through your choices, as you will when choosing.
It would be good to have several of them, from different areas. That will ensure that you have the necessary cash flow at every stage of the business.
Under no circumstances should you send your presentation unannounced. That way, you will only get a counter-effect.
Ideally, it would be good to have someone – to connect you with a member of the investment team. LinkedIn can help you a lot here. On the mentioned platform, you can build quality connections with relevant people. In addition, you try to attend various conferences or seminars where targeted investors give speeches.
Prepare a list of investors you would like to meet. It is rare for an investor to contact the company himself. You have to ask to get it. Just do not be intrusive.
Investors divide into five groups, and they can be:
– Bank – where you can take out a loan, but it is not a source of investment. It is often used by companies that have already developed their business.
– Personal investor – is someone from the environment ready to help in the beginning.
– Angel investor – is an individual with a large income. It is ideal for the transitional phases of business.
– Venture Capital – who invests millions of dollars. It is used when work starts to show high revenues.
3. Your presentation to investors
When you get the answer, have everything ready. Optimize your website, write blog posts regularly, be active on social media. You can also prepare a brochure – in which you will describe what you are doing and what benefits the investor who wants to support you has.
Prepare everything on time so that you have everything ready at all times.
We have already mentioned LinkedIn. They will look for you here as well. Try to regularly publish the achieved successes and the goals for which you are striving.
4. Customize your idea
Your idea may sound great, but it is often the case that it sounds good only to you. Ask yourself if it solves a real problem. How much can it help others? Is the market big enough, and what is the competition?
Tailor the idea to the needs of the clients.
You try to do that, if you start a startup, because you contribute with a passion to finding an idea and its development, and not to be an entrepreneur and make money from it.
5. You have to invest, too
If at the beginning you are ready to invest in your own idea, when no one has heard of it yet – that tells investors you guarantee for that product.
By doing so, you show that you are committed and that you will not easily give up on your goal.
Take a risk. If you are not ready to take the risk yourself, how can you expect someone else to take it because of you?
Need more information? Read also What does it take to start a startup.