If you are a company looking for funding, what do you have to do to improve your chances of success?
Director of Funding at fintech hub Catalyst, Alan Watts shares his advice.
Here is how to position your investment pitch
- The first thing is to view your company how an investor would see it. Both angel and venture capital (VC) investors know that most of their investments will fail. The statistics suggest that one ‘good’ investment will more than make up for nine failures. So your company must look like it could, if all things went well, be that one in 10.
- Do your proposition, team and, most importantly, figures point to the investor making a ten times return? A nice three times would be good, but most investors shouldn’t invest unless they see a much tastier potential upside.
- Then look at your investment pitch, starting with a slide deck. And here your natural enthusiasm can lead to putting in too much ‘good news’. Don’t.
- A typical VC gets 1000 inbound decks, meets 100 and invests in five. Often this means they scan a deck in minutes – or less. So you have to give them what they want to see and quickly. The first slide is vital and must show what you do, the potential (addressable market size is good) for say a 10x, and your edge over the competition. The purpose of this deck and this vital first slide is to get to a meeting. The rest is important, but can wait.
- So rule two – less is more and get the investment opportunity across quickly.
- After that it’s perseverance and, to be frank, whether they like you. But if you are made of true entrepreneurial stuff then none of this will deter you.
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