One of the blandest bits of advice that I always hear for pitching to angel investors is to “stand out”. Entrepreneurs who want to raise finance to start a new business or to expand their existing business can make use of these five pitch tactics:
1. Create a pitch that connects with the heart.
Use your pitch to help investors understand you and your business ideas on an emotional level. Your pitch must be interesting, relatable, inspirational, and relevant to the needs of the market. They want to work with entrepreneurs who are passionate, promising, and driven.
2. Your pitch must connive with a well thought out business plan.
Your presentation must be evidence-based, showing research results and facts; although you do not take away the fun and attention-grabbing tactics. This is an indication that you know what you are talking about.
Aside from that, prepare answers to common questions that investors will throw: How large is your market? Who are your competitors? Why is your product better than the others? What is your customer acquisition strategy? Is there a big enough market and customer base for the idea?
3. A good business pitch does not look like a spreadsheet.
Investors do not want long and complex business ideas. Instead, they want precise, simple, understandable, and easy to buy into. You can do that by touching on market analysis but with a value-oriented message.
4. Have a good dynamic with your management team.
Investors do not want to be involved in bad partnerships. During your pitch, exude inspiration and confidence with your team. Make them want to invest and not raise their eyebrows at you.
5. Leave the investors wanting more.
Angel investors invested more than £20 billion in 2010. To get a slice of that pie, you do not just need a strong conclusion — you need an exit strategy that informs investors how they’ll get their money back. They could love your idea, but if they do not think they’ll make money off of it, they’ll share their wealth elsewhere.
Investors will not only be there to fund your business. With the Social Responsibility Program, they are also there to mentor you and spend time with you to help you grow as a person as you journey into the business world. They understand that pitching can be a very daunting task. But when you have a great idea, a smart business plan and your talented team, you can impress investors and get the funding that your business needs.
BizAngels Network has worked with numerous investors over the year and we have discovered the best pitch formulas that could seal the deal. Common advice that all our angel investors would give, aside from making your time memorable, is to be remembered for your amazing idea.