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Tips on How to Attract Investors to Your Start-Up

You have a great start-up business in mind, but to turn this idea into reality, you need funds, and that’s where investors come in. But you are probably not the only one pitching their business ideas, so the competition is tough even at this stage. Moreover, if you get lucky and they agree to hear about your business, you still have a lot of convincing to do. It’s not an easy process, but successfully getting funding is also not impossible. There are things you can do to attract investors into financing your business, including the ones below.

Join a start-up acceleration program

It’s a program for start-up companies that provide support, such as resources, mentors, workspace, and an agreed amount of capital for a short period, usually around 3 to 4 months. It ends with a demo day, which serves as the graduation day for the participants—after that, they will be on their own. Participating in one before finding investors is good because it will help refine your business before you start pitching. Moreover, your experience and what you learned are something investors would consider.

Prepare your presentation

You must create a presentation, also called a pitch deck, to brief the investors about your company, what it’s about, and why they should invest. Explain in short but concise words the problems you wish to solve and your solution. Include proof that it’s a viable investment by showing your profit. If you have not profited from your business yet, show your research indicating that there is a huge market for your business. Your pitch deck design also matters. Humans are visual beings, so people respond positively to visual cues, meaning they can digest information better with a well-made presentation. The design also affects the tone of the demonstration. Depending on your audience, you may want a formal or a more casual feel for your presentation, and the design can help achieve that. A polished design will also say a lot about you, giving the impression that you are committed to your work.

Personalise your pitch

Research your potential investors to get information that could help with your pitch. A personalised one will give you better chances of getting the funding. For example, if you learned that the investors funded businesses that supported environmental projects, including something about sustainability in your business will spark their interest.

Determine your future goals

You must be precise with your current business plans. However, it’s equally important that you are also clear about the direction you are heading. It will impress investors if you have a projection on the development of your business for the coming years. They want to be part of a company that grows and does not remain stationary.

Have a concise marketing plan

Investors want you to have a concrete plan on how to market your products or services. Know and understand your target market, and determine how to reach them effectively.

Once you get their interest, be reasonable with the asking investment cost. They could back out if they see that the price is too high for the business size and market.

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