Startups do not have a host of funding options. Finance is one of the many touchstones that can make or mar your startup. While potential investors welcome crowd funding and financial assistance from family members, more often than not, they rely on angel investors and venture capitalists. Angel investors and venture capitalists receive a lot of business pitches. Not all business pitches are approved by them. When it comes to separating wheat from chaff, angel investors are accomplished virtuosos. Thus, it becomes imperative to incorporate key things investors look for in a startup pitch and these help you win the heart of venture capitalists as well.
Here are a few key things investors look for in a startup pitch:
- Unique Selling Proposition:
Your company’s products and range of services should be unique and promising. Substantiate your USP claims in the pitch by furnishing concrete evidence. Make your startup pitch worthwhile by eloquently elucidating the competitive advantage. In addition, make sure to include all the proprietary features, exclusive licenses and intellectual property protection.
- Marketing Strategy and Market Size :
Include a range of viable marketing strategies. Use your discretion to include market size. Do not forget to mention your core customer group. Showcase your business acumen by coming up with a few mathematical figures. Project your expected market share and envision your market penetration. Describe your STP- Segmentation, Targeting and Positioning strategy.
- Relevant Domain Experience:
Your team members, founders and co-founders should have expertise and business experience in their relevant domains. Their credentials matter a lot. Passion, dedication and commitment levels will be assessed. Many a time, investors back startups that have experienced personnel. They often delve deep into the details of founders and co-founders. In addition, they probe into the details of advisors and management panel.
- Business Plan:
Your business plan should look convincing, promising and monetizing. It should include a Plan-B too. To all intents and purposes, a viable exit plan requires a special mention. Your business plan reflects your research oriented and analytical mindset. Include your short term objectives and long term goals. Complement it with a business model.
Let me quote a witty saying of John C. Maxwell, “A leader is one who knows the way, goes the way, and shows the way.” According to E.M. Kelly, “Remember the difference between a boss and a leader- Boss say, ‘Go!’ while leader says, ‘Let’s Go!’” Remember, angel investors always nod in the affirmative if your dream team leader is business savvy and proficient.