Having a brilliant idea for a business is one thing, but what comes after is just as important. After starting your business, to accelerate your growth and scale, it’s common to seek investment for your startup. This is a time where you need to make the right connections and sell potential investors on the idea for your business.
Investors are used to slick presentations and bombastic pitches, so few things can dazzle a seasoned investor outside of a solid business plan. They focus on the founder, the product and their go-to-market strategy, and after seeing hundreds of pitches, they know what they are looking for. Though their instincts are fine tuned, there are always best practices that you can use to present your company in the best light possible.
In this article, we’ll provide some tips on how to effectively market your startup to potential investors.
How to market your startup to investors
1. Make sure your team are on the same page
Investors are going to be asking a lot of questions when you pitch your idea to them. Make sure you and your co-founder/s are across your startup’s vision, ambitions and plans for what you would do with the capital if they invest it. For example, if you and your co-founder put forward different visions for your startup, investors may see this as a sign of poor communication in your business.
2. Make sure your pitch is engaging
Of course, detail is important when it comes to your pitch, as is getting all the facts and figures right. However, you should make sure your pitch is engaging and makes your investors want to know more about your business. Draw investors in by describing the problems or gaps in the market, and then put forward your business as the natural solution. We’ve seen hundreds of pitch decks here at Lawpath, the typical length is 12 – 15 slides (you might have a longer pitch deck for the 2nd meeting).
3. Treat investors as you would any target audience
Find out about the people you’re pitching your business to and market your pitch accordingly. Factors such as their age, interests, and other investments can tell you a lot about what they’re looking for. Make sure you do your research on your investors, such as the industry they work in and what their investment cap/mandate is. There’s not much utility in asking for a $1 million investment when the investor you’re talking to has a maximum investment amount of $500,000.
4. Build and maintain your network
Networking with others in your industry can be useful when seeking investment opportunities, but there’s also a lot to learn from your peers. Attending events in your industry will help you build up your network and increase brand awareness. However, attracting investors to your business won’t always happen overnight – you will have to spend time establishing rapport with them and let them get to know you (as well as your business).
5. Don’t be afraid to ask to be introduced
If there’s an investor who you think would be a great fit for your business, don’t be afraid to ask one of your connections to introduce you. Getting acquainted with investors is often the hardest part, but having an informal conversation when you get introduced can be the best way to get started. If you only have a LinkedIn profile or email address, sending a well-written message or email can be enough to get a personal introduction lined up.
6. Use the same platforms as potential investors
The power of platforms such as LinkedIn and even Twitter shouldn’t be underestimated. These platforms will not only give you a way to reach out to investors, but also to market your business to them for free. Being consistent in your use of these platforms means it’ll only be a matter of time before others in your industry notice, and this will extend to investors. We suggest using software like Buffer to keep your social footprint consistent.
7. Think of the reasons why someone wouldn’t invest
Be honest with yourself by looking at your business plan and thinking about what would deter someone from investing. Is your business idea unsustainable, are there limited growth opportunities, or is it high-risk? Think about how you can address these concerns before investors turn away from your business. This way, you’ll be ready to overcome any objections which investors may have and show them that you have the tools to succeed.
