Ladies have extra of a problem than males relating to elevating cash. In line with Fortune Journal, all-women groups raised solely 2.2 p.c of accessible capital in 2017, versus 79 p.c for all-male groups. To deal with this imbalance, girls have to be keenly conscious of what it takes to make a profitable pitch to traders.
Because the founding father of the Subsequent Act Fund, a woman-focused angel fund, I consider that the next strategies for feminine founders searching for funding may make all of the distinction in your success (or failure) when elevating capital.
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Construct your community
Even earlier than you’re prepared to start out fundraising, it’s a good suggestion to start out constructing and enhancing your community. Begin by exploring the angel investing and entrepreneurial ecosystem in your market. Who and what are the sources of capital? Do your homework. Discover out who these people or teams are. What’s their background, and what sorts of alternatives do they spend money on? Who are you aware who is aware of these individuals?
Bear in mind, you’re in search of the perfect match for your corporation. You don’t must pitch everybody. Whereas you have to be open to all pitch alternatives, you must also discover the chance to pitch in entrance of female-focused angel teams. This recommendation additionally goes for extra numerous angel teams and VCs that higher signify the world wherein we stay.
Apply your pitch
It’s worthwhile to be the easiest gross sales individual to your thought. In spite of everything, nobody else can pitch this concept higher than you possibly can! Develop and work in your pitch till it simply can’t be any higher. Spend the time to observe and be ready to reply questions. Know your thought and your corporation inside out.
Should you get the prospect, attempt to watch different people pitch their companies as a way to be taught from them. If you observe, be certain that to get suggestions from trusted advisors or mates. You solely have a couple of minutes to promote your thought and make angels need to spend money on you, so make them rely!
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Imagine in your self and your corporation
Present your experience, your confidence and your grasp of the numbers. You might be your corporation within the eyes of the traders. Bear in mind, we’re investing in you and your thought. We’ve got to be satisfied that you’re the individual to do the job, and you’re the one who will make that occur!
Apply your storytelling abilities
Develop into a superb storyteller, and bear in mind, “Buyers spend money on issues they perceive.” If traders usually are not possible to make use of the services or products that you just’re pitching, they should perceive what drawback you’re fixing and the way it will change {the marketplace}. Who do they know that might be impacted by your services or products? You’ll must reply this query by telling a narrative.
Know your numbers
Use actual information to assist assist your thought. Get suggestions from potential prospects which you could share in your pitch. Outline the market alternative and market measurement.
What does the area you’re disrupting appear to be? How is your services or products distinctive and the way are you defending your thought? Share your potential gross sales plan and advertising method to generate progress.
Speak up your workforce
Discuss your workforce and your advisors. How are they related to your corporation and what is going to they have the ability to do for the corporate? When you have prior (related) expertise, be certain that to share it.
Share your marketing strategy
Describe the marketing strategy and financial mannequin to your services or products. How will you earn money? What’s the potential income plan and what sort of margins are you able to anticipate?
Discuss your progress technique. Be real looking, however assume massive. Who’re your present shoppers (or beta shoppers) and what’s your probability to generate income? How quickly will this occur?
Be clear about your ask
Be sure you state particularly how a lot cash you’re asking for and what you intend to do with it. What’s going to the funding aid you do? How will it get you to the following stage of progress?
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Have an exit technique
Buyers are excited by your exit technique, so make this part of your pitch. What does the panorama appear to be for an exit? Who do assume are doable acquirers? Do you may have any connections to those firms which you could leverage when the time is correct?
Comply with up after your pitch
After you’ve pitched your corporation, make sure to observe up inside 24 hours to reply any questions. This offers you a chance to make clear any points, allows you to make one other touchpoint, and exhibits that you’re up to the mark. It might additionally aid you stand out, as a result of not everybody takes this step!
Bear in mind, you solely want one “sure” to get the ball rolling! Use the next tricks to get your entrepreneurial goals funded, and also you’ll be one step nearer to startup success.
This text was initially printed in October 2018.
