Because there are so many possibilities, you should consider whether venture capitalists, angel investors, or crowdsourcing are the best fit for you.
Each offers a different level of company involvement and has distinct expectations. Some will solely serve specific industries or have similar products in their portfolios.
It all begins with a one-minute elevator pitch. You should be able to sum up what your firm does and how it adds value to the market in a single line.
First, you must clearly communicate the actual problem you're solving and how it affects your potential consumer base by probing how well you know your target market? Your potential investors will want to know the size of the market and whether you have a feasible plan to conquer a portion of it.
That first email is your chance to provide investors a quick outline of your investment opportunity. Outline who you are, the problem your company addresses, market facts, and the reasons you require finance. Make sure you're concentrating on the investment potential rather than the company.
You need to impress them with your presentation once you've made it to the first meeting. Dread of missing out on the next unicorn drives investors, but they also fear losing money. Make sure your numbers are correct to get them over the hump.
Examine your business plan and how you plan to make money. Determine your possible clientele and revenue streams, as well as your competitive position. Prepare revenue forecasts for at least the next 12 months, but preferably three years.
Investors will undertake due research and want a summary of your financials in your pitch deck. Prepare to go over your financial requirements.
Make sure you can produce a clear funnel and/or go-to-market strategy, depending for the situation. Know how much it costs to acquire new customers and how much it costs to keep them.
a. What is the status of your product roadmap?
Investors want to know you have a strategy and won't waste their money. Outline the steps you've done so far, your primary objectives, and the milestones you want to achieve over the following 18 months, down to features and expenses.
b. Is your presentation succinct and to-the-point?
Your pitch deck only requires a few slides, each of which conveys a single message. They should pay special attention to your product, market, company model, traction, financial predictions, team, competition, exit strategy, and, most importantly, your investment pitch. Refer to Guy Kawasaki’s 10/20/30 rule when in doubt: Keep it under 10 slides, talk for no more than 20 minutes, and use a font size no bigger than 30.
The value you place on your firm will affect how many shares you sell, so be sure it's reasonable.
To get investment, you'll need proven management and a varied workforce. Investors want to know that your ambitions are backed by a capable team. Individuals invest in people at the end of the day.
Behind-the-scenes personnel should be fully engaged and invested in the organization. Investors like teams who have already grown/exited a business, no matter how enthusiastic they are.