Fundraising for startups is pertinent to getting a business in motion, yet it seems like an impossible mission.
Meanwhile, it is very important for the survival, innovation and scale of a startup and the press seems to propagate a widespread availability of funds.
A few startups who know their onions however are those enjoying this acclaimed available capital.
There is a possibility of being in favour with a venture capitalist and you would not want to ruin your chance of raising capital for your startup.
In order to make your presentation captivating and leave a good impression on a venture capitalist , the following are peculiar tips for consideration.
Display Conviction Attitude
Involving in venture investment for a new growing business has its risk and so investors would be very careful in ‘choosing their poison’.
In order to encourage investment for your startup, you must consider what you have to offer; investors must be able to see that you know what you are doing, that there is a potential for breakthrough and high returns on whatever fund would be channeled into the business.
Also read, Top 5 African Venture Capital Firms
As one pitching for funds, you should be able to convince the investor to buy into your idea, your belief, your personal investment in the business up to the point of meeting, your passion, as well as how informed you are in the business world.
Do go about discussing short-term goals alone, convincingly talk about your long-term goals and how you intend to meet them, remember the future matters to the investor.
Will you deny and hide, like Peter did Jesus, when the going gets tough? You need to display your belief in what you are building as valuable, its importance and the dividends it will accrue over time.
While making your presentation, use simple language to show that you have a vision of your product, its size, the potential it holds in the industry and the competition that exists. Do not mince your words.
However, do not just go on and on about how great your company is and how its the next best thing to happen, be ready to listen and rub your mind together, give room for the exchange of ideas, hold conversations, and ask intelligent questions.
Also read, Venture Capital: Steering the Wheel of Tech Startups Growth in Africa
It is possible for the investor to have contrary views, be sure to welcome and consider such views, do not go about whining like a child who lost a penny. Be ready to listen and make certain adjustments if need be.
What is your story?
When pitching your business to an investor, be sure to tell your story. Impressing the venture capitalist with your passion is key because that is what differentiates you from the others.
Your story should be captivating, weave in scenes and acts. It should address your reason for pitching, risk-taking/management, authenticity and viability of your product or idea.
Do not forget to include the battles you have overcome, the wins and the trials and how it has shaped you, not also forgetting your team.
Your story should answer questions like the experiences that birthed the idea, the solution it offers, the challenges and the outcome. If you have never experienced walking barefoot, it is impossible to know the importance of shoes.
Loner or Team Member?
The investor would definitely like to know how well you thrive in a team or such that travels alone.
A lone walker may be able to travel far but definitely not as far as one who has a team with him.
Having a team means you are responsible to people and will not walk away in tough times.
Who makes your team? The investor would measure your ability to recruit top talent to help your business grow.
A venture capitalist will not dabble into the waters except you satisfy the required criteria. No one wants to partner with a failure.
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