Looking for investors or making sure they find you can be a make or break for your startup. So how do you know what an investor is looking for? How can you help to increase the chance that they will invest in YOU. Last month, I posted a video link on New York Angels chairman, Brian Cohen and insights from his new book, What Every Angel Investor Wants You to Know, which inspired me to come up with eight valuable tips to help increase your chances for dollars and sense:
1. Make Sure Your Elevator Pitch is Kickass: How you pitch your company will instill confidence, and let others know what you think about it and how you sell. For a powerful elevator pitch, get to the point fast and make sure both you and your audience understands clearly what problem you are trying to solve within the first few breaths. Play out any roadblocks or potential issues and be prepared for all types of questions. Know how to deal with issues and problem solving; have financial materials ready, and have your research done on the competitors in the market.
3. Positivity: When presenting to an investor, be enthusiastic, positive and optimistic about the potential partnership and investments to come. If you’re not excited about your product, why should the investor be?
4. Choose Wisely: Remember along with the money comes the person/personality. These folks ideally provide an advisory role, a rolodex of contacts within the field, a trouble shooter, and many more resources…So be smart about who you want on your team!
5. Only Disclose What’s Necessary: Discuss all key points necessary to get your investors’ attention. Be smart when talking about your company’s financial worth and gain mutual trust before exposing everything you’ve got.
6. Connect With the Money: Make connections to where the money comes from, and the people behind it. BUILDING RELATIONSHIPS ARE ESSENTIAL: a successful investment stems from a nurtured relationship between the angel/investor and the entrepreneur. It’s a Win-Win when both parties have something to gain from the relationship and a helpful formula for success.
7. A Dream and a Vision: Make sure you can answer where the money is going and what you plan to put it towards. Tell investors how much you want to raise and how it will benefit the company. Keep in mind short and long-term goals. What is your end financial goal and what do you plan to do with the company long term?
8. Be Advisable: Investors want to know they have the ability to advise the entrepreneur. In order to do so, you must be relatable, dependable and accountable. Utilize their resources. Make sure you’re open; choose advisors and investors who you can learn from and trust.