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Published on July 22nd, 2016 | by Howard Bell

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Most Successful Startup Pitches To Lure Investors

Some say that all you need to launch a startup is a great idea. Well, this is not the whole truth. What you also need is some capital to help you start, but finding it might be quite troublesome. In this situation, the greatest number of small companies opt for a bank loan, but banks can be quite suspicious about your growth potential. The only solution to this problem is to start looking for those who will agree to invest in your company, in exchange for some equity. Still, not even this is simple. First, you will need to learn how to lure the potential investors, so here are a few ways that could help you out.

Use FOMO

People who are about to invest their money are extremely careful. If they sense any trace of fear or doubt in you, they are more likely to back out. Regardless of how altruistic they may feel, they will listen to you in hopes of making money, so make your presentation worth their while. Try to install in them the FOMO (the fear of missing out). What this basically means is that you should convince them that they need you more than you need them. If they refuse to invest, someone else will take their spot. In other words, you are presenting them with an opportunity, rather than asking for help. If they fail to realize that, it’s their loss and no one else’s.

Speak Numbers

A great motivational speech might raise euphoria in the room and grab the attention of your investors tight, but once this starts to wear off, they will want to hear some numbers. According to the experts from Pherrus Financial Services, potential investors worry about their money, and they want to know your plan for every single cent you are planning to spend. Talk to them about your strategy for the main revenue stream, as well as alternative profitable solutions. Also, try to back up your claims with a quick survey of the current market trends. Show them that your deep understanding of the target demographic is what separates you from the majority of your competitors.

Do Your Homework

Treat every single investor as a unique audience. Sure, they all want to get rich, but their definition of rich, or their idea of a perfect method of gaining wealth, may be completely different. Before you even start devising your strategy to approach the investor, try to learn as much about them as you possibly can. If you can, look into the businesses they previously invested in. This can give you some insight about what they are interested in and what kind of approach they trust the most.

More than Just Money

Most Successful Startup Pitches To Lure Investors

While in most cases, you will be looking for money, this isn’t all that some investors will bring to the table. For example, some investors are veterans in the line of work you are just entering and their advice can sometimes make all the difference between success and failure. Next, they may also have some valuable business contacts you could find useful. With this in mind, not all investors are equally important. So, focusing on the right ones is the right course of action.

Short, Clear and Highly Visual

One last thing, even though your investors might want to hear all the details, you should probably leave these inquiries for Q&A part of the meeting. As for your presentation itself, keep it short and try to make it as visually strong as possible. Infographics are always better than lists, since they can make immersion much easier.

Conclusion:

As you can see, luring the investors, especially the right ones, is no easy task. However, there is one final piece of advice that you should take into consideration, if you plan on making your dream come true. Namely, in the 21st century, everyone has a different idea and they all look for a way to get the right investor. This means that all you need to do in order to stand out is seem more genuine. Because of this, just pointing out your strengths is (sometimes) not enough. In this case, you should point out your competition’s weaknesses as well. While some may call this foul play, all’s fair in love and war. Make no mistake, the modern business world is like a battlefield.

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