In this uber competitive market, tech start-ups need more than just a good idea to grab the attention of Venture Capitalists and Angel Investors. Every tech start-up would be wise to include the following things in their “pitching tool box”:
An Attention Grabbing Elevator Pitch
A twitter-sized description of what the company/service does. (10-15 words) Make sure that this pitch is concise as well as informative and interesting.
A Polished & Professional Presentation
This is of the utmost importance. This document will be used to sell the Investor on the company’s goals and ideas. It must be simple, clean cut and sophisticated.
This should include a Business Plan that clearly spells out:
• Market Size
• How the company plans to scale up
• Profit Margins
• How the company will handle future competition
• A clearly articulated exit strategy
• Convincing analysis backed by facts and figures
• How the company differentiates itself from others in the same field
Use professional accounting software to illustrate facts and figures. Rather than going with cookie cutter software, invest in cost effective, high quality customized software that highlights what the company has done in an easy to read, succinct manner.
It’s advisable that the startup have solid numbers to show the Investor. A convincing analysis backed by facts and figures will give the Investor confidence in the start-up’s viability as well as business model.
Information About The Team
This includes a presentation that demonstrates the quality of the team. It must highlight the strengths of the individual team members, how they work together in a cohesive manner and clearly demonstrate how the startup has a diverse team of great minds.
According to Mashable.com, in a competitive economy where only 2.5% of angel-funded companies go on to raise venture capital, it’s important for a startup to show cognizance and relevance in their market. Early-stage VCs want to see a sizable market opportunity before writing a check, and startups can demonstrate this through a pilot or beta customers
Investors like to invest in “cool” start-ups – those that have both traction and are already developing a following. Include clippings, links and information on media coverage. To obtain Media Coverage, contact review sites and magazines as well as submitting press releases to local newspapers.
Another good way to get the word out is to write guest posts for tech blogs and start conversations on sites such as Quora.
Skin In The Game
Show how the founding member(s) have invested in the company – do they have a second mortgage? a loan from friends? This proves to the Investor that the Principals are serious.
With a strong team, detailed information set forth in a professional, easy to understand manner and a creative bent, the tech startup can significantly increase their chance of securing investor seed money.
Originally posted on September 3, 2013 @ 9:07 pm