Listed in: Starting up

Pitching to new investors

Pitching to raise funding can be a nerve-racking experience. Here are some top tips to really impress the panel.

4 minute read

Funding is the lifeblood of any business. But when you’re in start-up mode, before you’ve had the chance to get profit pumping through your company’s veins or look into business finance options, finding investment from external sources can be crucial.

One source that New Zealand start-ups are increasingly targeting is 'angel investors'. These are typically high-net-worth individuals with strong track records in business, who as part of their investment portfolio, invest in young companies with strong, often global, growth potential.

Market validation

Due to their experience however, and the volume of start-up pitches they see, angel investors need to be presented with compelling evidence of an appealing opportunity before they’ll part with their time and money.

What do they want to see? One of the clinchers is market validation. You might think you have the greatest business idea ever, but angel investors will want proof that there’s a substantial market need for it. Quality research can help support this, but the best evidence a start-up can provide is real customers. So if people are already handing over money for your product or service, or if you have highly reputable companies trialing it, this kind of market traction is something potential investors need to see.

Showcase what you have to offer

It’s often said people invest in people, so angel investors will also want to know about you and your team. Your idea may be new, but what experience do you already have in this field that will give you insights or a competitive advantage over others?

Even if you’re an expert in your field, angel investors want to see that a founder is coachable. These investors are willing to share their expertise and contacts, but they don’t want their advice to fall on deaf ears. A pitch that includes evidence of how you’ve adapted your idea in response to feedback is one way to show this to investors, as is a willingness to respond openly to any questions they may have.

Angel investors want to see the passion a founder has for their venture. It takes tenacity as well as talent to get a start-up off the ground, so you’ll want to tell investors the story of the journey you’ve been on with your business in such a compelling way they’ll want to join the ride.

The pitch deck

A pitch deck is the brief presentation a start-up founder uses to ‘sell’ their business idea to an investor audience. It should be short and simple. Most pitch decks have fewer than a dozen slides and cover the primary facts an investor will want to know – why and how your product or service fills a compelling market need.

What you should include

• Introduction: Who you are and your vision.
• The problem: What problem you're trying to solve.
• Market opportunity: The size and scale of that need.
• Product or service: What your solution looks like.
• Revenue model: How you will make money today and tomorrow.
• Sales and marketing: How you will reach customers.
• Team: The people who are involved.
• Traction: The number of customers you already have. 
• Competitors: Who your competitors are and the advantages you have over them. 
• Financials: Your plan on how you will grow revenue after time. 

Praise makes perfect

Once you’ve built up a strong argument with evidence that supports your vision and whipped it together in a compelling deck, hone your pitch by practicing it as often as you can in front of the mirror, friends and family, and trusted colleagues and mentors who will give you constructive feedback.

There are a number of events that offer founders the chance to present to angels or other types of investors in the start-up ecosystem. Stay confident when you’re presenting, and do everything you can to bring your small business to life. Good luck.

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