When speaking to an investor, you will have a limited amount of time to state your case. Generally speaking, you will have about twenty minutes for your presentation, and you will need to plan for how to best use that opportunity. It is vital to not get bogged down in unnecessary details but to stick to the essentials that give venture capitalists enough information to take an interest in your company, knowing you can share more information later on.
Your financial institution or private investor is going to want to know how you intend to use the capital you raise. This is because they will view your company as a partnership, and they need to see that you will responsibly handle your funds.
In addition to this, it will be vital that you give information regarding any monies you have obtained in the past. This will give them a solid history that will speak volumes about the nature of your business and your character.
It is worth every bit of time and effort to compile this document, as it will demonstrate to your investors how you plan to source revenue from your clients and customers. Your streams of income will be listed, engendering confidence in your future endeavors.
You can include data regarding your product or service, such as your price point, and you can compare this to what is charged by others in the marketplace. The buying cycle of your customer is also crucial to discuss, as you will need to develop ways to keep him or her engaged and coming back.
Your Unique Offering
Put simply, no startup is viable without having a way to distinguish itself in the marketplace. It must satisfy a genuine need for which there is currently no solution that is quite like your own. If there are several other companies that are in a similar space, you need to show that your approach is innovative and will attract people based on the ways in which you are different.
Speak to your investors briefly about what currently exists in your niche and how your competitors have been able to leverage this into a consistently healthy source of income. Talk about how there is room for what you are producing.
Though several aspects regarding those working in your same field have already been mentioned, you can specifically delve into whether these other companies have been acquired by investors, and if so, list the price for which they were purchased.
You’ll also want to inform your investor of who made the purchase and other pertinent details. This will help present a more complete picture to those trying to make a decision about your business and its propensity for profit.
Without a means of attracting clientele, even the best concepts will fail. You need to have a proven method for obtaining leads, and this tends to rest with your marketing and sales team. Show the size of the customer pool you think exists for your product or service.
In addition, you’ll need to outline the profile of who your ideal clients are, often referred to as your avatar, so that you can hone in on the characteristics of this demographic with laser focus. Projected growth is important to discuss, sales figures, and the average cost of acquiring a client.
Your staff plays a monumental role in the day-to-day operations of your enterprise, and investors will want to assess how they work together as a cohesive unit. This aspect cannot be overlooked, as a bad fit can lead to disaster when trying to attract a venture capitalist.
Provide access to the backgrounds of your various workers and your own as well. Highlight key areas where they shine so your venture capitalists will quickly see what they bring to the table in terms of experience, char
Fidelman & Co. specializes in management consulting, presentation advisory, and financial modeling. We focus on building businesses alongside entrepreneurs and investors. Contact us today for more information about what we can do for you.
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