Fundraising efforts can often feel like a never-ending uphill battle. Each time you set out to raise capital—be it for the first time in search of investments and its impact on industry or for an established business in the pursuit of funds to scale—such fundraising periods always introduce their own unique and perhaps even impossible challenges.
Not to worry, though. While this is going to be difficult, the following is a look at ways that you can overcome those challenges and raise the investment necessary to help your business grow. And if you’re looking for an extra bit of excitement to break up the intensity of fundraising, you might be interested to know that this website allows you to place a bet, adding a fun twist to your parental day while you work toward securing those crucial investments.
Know Your Audience
Find out who you’re speaking to before you start communicating. This isn’t all about the concept—investors need to feel you’re fully in command of the market, the competition, and the customers.
Tailor the pitch to the prospective interests and concerns of the potential investors’ audience. That means doing your homework on who they are, what they’ve invested in before, and what gets them fired up. This will help you build a more engaging narrative to which they can relate.
Develop a Great Story
Behind every great pitch is a great story. Numbers and data are great, but as relayed before, they won’t yank an investor’s heartstrings as a good, well-told story can. Your story should express why your business exists, what problem it solves, and how it is different from what’s already out there.
Be clear about your mission and vision, and communicate these through your pitch. It may sound simple, but a strong narrative makes your business easier to remember and more relatable—and relatability is the key to standing out in a crowded marketplace.
Be Realistic About Your Valuation
One of the entrepreneurs’ biggest mistakes when pitching to their companies is overpricing their valuation. Understandably, it’s easy to be optimistic, though an unrealistic valuation is very common, scaring off potential investors.
Research thoroughly to find out how similar companies have been valued so that you can justify your value with solid data. Clearly, investors are more likely to engage a company that appears realistic and well-grounded in their valuation than one that appears to be over-ambitious without the figures to back it up.
Focus on Relationship Building
Investors are more likely to invest money in people they like and trust. So start building that relationship with the investors you are targeting way before the money is needed. Go to industry events, take advantage of any networking opportunities, engage with investors on social media, and by the time you are ready to pitch, you will have a network of contacts who want to know more about you and trust you enough to want to support your business.
Showing Traction and Milestones
Highlight that your business is on a roll. Whether that means customer acquisition, revenue growth, or product development, demonstrate some traction to help investors believe your company has potential.
Outline the major work done so far and clearly define the expectations after the investment, hence showing that you are on your way to success. This will impress the investors, and the probability of them investing in your business will increase.
Keep Your Pitch Simple and Focused
You always risk overwhelm your investor. Even though your pitch is thorough, it has to be simple: focused on just a few key points that will really impact your audience. Avoid using any kind of jargon or technical language that blinds your audience or causes them to lose interest. Again, you’re looking to keep attention, not lose it. A pitch like this will likely make a lasting impression and encourage further conversation.
Embrace Feedback
Finally, be receptive to any feedback you get from investors. No pitch is ever perfect, and not every pitch will result in funding. Still, one should treat each meeting as an opportunity to learn and grow continuously. Be open to what investors have to say. Their advice can mold your pitch, strategy, or business model. Take in their feedback, adjust it where necessary, and continue to use each experience as a stepping stone for your fundraising goals.