Chances are, you are passionate about your company and its growth prospects, and you think everyone else should be too. Companies embarking on their first round of pitches to investors go in with this attitude and may be surprised when investors don’t say immediately yes. The roadblock in between winning over investors often lies in the pitch itself. Here are some common pitfalls of investor presentations and what yours should include.
How to Get Funding From Investors
“It’s all about who you know” is true when it comes to seeking funding and learning how to get investor funding. The timeline from putting your company out there for the very first time and actually getting an investor to say yes can take several months—but getting another yes after that first one usually becomes much easier. In the meantime, you’ll need to spend time building your network and letting everyone know what you’re up to and why your company matters.
Doing this effectively requires being able to talk about your company confidently and succinctly (i.e., even if you’re not prone to riding elevators these days you’ll want a compelling elevator pitch). Building your network should go far beyond your LinkedIn account, and it’s something your trusted advisors can help you with—when you partner with reliable service providers who themselves have wide networks, your own circle widens.
Preparing for Getting Investors to Pay Attention to Your Company
Before you have the opportunity for any meet-and-greets and elevator pitches, take an inward look at your company. You want to ensure that your financial operations are strong, that the information you are sharing can be relied upon and is up-to-date, and that you’re meeting your obligations.
Can you talk at length and with confidence about your business plan and how you’re keeping others around the company accountable to that plan? How will you be flexible with the plan if unforeseen issues arise or market conditions change? Do you have a good story to tell, with strong key players (investors want to know about the talent that makes up your company) and a marketable product or service? Investors are looking for growth potential—it’s not just enough to have the potential but to have a plan for scaling and a way to discuss that plan effectively.
Some of this information can be reflected in your investor presentation, but of course you want to know what to say to investors ahead of time.
Pitfalls of Investor Presentations
Here’s how to avoid some of the common pitfalls of investor presentations:
- Speak to the room: You want whoever is in the room to “get” you, so you want to speak at their level and appeal to their interests whenever possible. What are you seeing in the market and your company’s place in it? You know your company better than anyone—so here’s your chance to explain that plainly.
- Keep it informative but short: Share the main highlights—why you need funding, how it will help your company’s growth, your vision, and your company’s differentiators.
- Show your progress: Sometimes a clear, colorful graphic can get your story across easier and quicker than words can. A chart showing your revenue over time and forecasted, for instance, could put a simple yet compelling argument for investing in your company on display.
How to Get an Investor to Pay Attention
Investors want a compelling story—if you have one and can get a moment of their time, they’re more likely to perk up and listen to what you have to say. You may find that you are too close to this story, however, to articulate it without some help. Consultants who have experience putting investor presentations together and helping to present to investors can be invaluable for knowing how to get an investor to pay attention, helping you speak the language of investors, presenting a captivating case for your company, and then going out with it. When you’re too close to something, you may not realize what the key points are that are going to win over an investor.
Do you have clear objectives and how you are going to meet them? Is your decision-making based on solid information? Do you have a clear sense of your customers (the core demographic) and how you will market to them successfully? How well do you know your product, innovation, or prototype and its potential? How good are you at hiring the right people, for creating the type of company that will thrive with loyal talent, and not burn anyone out? And, of course, how will you use the funds you are seeking, and how will you scale the company?
Winning over investors largely involves knowing what questions they are likely to ask. When this isn’t something you do every day, experienced consultants can help you anticipate those queries and how best to approach them. They can help you tighten up your company’s financial operations, assess your marketing efforts and plans, and prepare you for this big step in your company’s journey—the next round of funding.
Looking for guidance on getting investors to say yes? Let’s go over any materials you have and help you tell a compelling story. Reach out to RoseRyan today to learn more.
