If you want to convince investors, first of all, you have to convince yourself that your startup is worth investing in. And then when you explain this to investors, the chance to get the money will be more likely. Instead of focusing on your pitch, let your startup do the work. Convincing yourself does not mean playing mind games with yourself to boost your confidence. Truly evaluate whether your startup is worth investing in. If it isn’t, don’t try to raise money.
A good idea is not enough
Founders usually think of startups as ideas, but investors think of them as markets, i.e. if there are many customers who’d pay something for the product you are proposing. Your target market has to be as big as possible. But again, this is not enough. You have to demonstrate that you can capture it.
Don’t just ask for money. Explain how you will use them
It is crucial to explain how you intend to use the resources you’re asking for. Provide the investors some details on how you will spend the fund on recruitment, marketing, operations, business development etc. Give the investors the possibility to invest on an action plan, not only on a good general idea.
Highlight your team. It’s one of the most important ingredient.
Most investors decide in the first few minutes whether you are a potential winner or not. Explain them that you are supported by a great team with excellent skills. Flash their credentials. Sometimes, investors are persuaded not by a flashy idea, but by the track record of the people involved. Here’s an old investor’s maxim says: “I’d rather fund a bad idea by exceptional people than an exceptional idea by bad people.”
Don’t expect a quick “Yes” or “No”
An investor may sound enthusiastic about supporting your project, but it will take a long time to obtain an agreement in writing. Prepare yourself for a series of “Maybe” type responses.
Be aware: money is not all the same
Choosing the right investor for your business is critical, you have to determined and you should refuse money from investors that could not bring any added value to your company.