Ladies have extra of a problem than males on the subject of elevating cash. In keeping with Fortune Journal, all-women groups raised solely 2.2 % of accessible capital in 2017, versus 79 % for all-male groups. To deal with this imbalance, ladies must 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 imagine that the next strategies for feminine founders in search of funding might 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 put money into? Who have you learnt who is aware of these individuals?
Keep in mind, you’re on the lookout for the most effective match for your enterprise. You don’t have to pitch everybody. Whereas you need to be open to all pitch alternatives, you also needs to 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 symbolize the world by which we stay.
Apply your pitch
It is advisable to be the perfect gross sales individual to your thought. In any case, 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 apply and be ready to reply questions. Know your thought and your enterprise inside out.
For those who get the possibility, attempt to watch different people pitch their companies so as to study from them. Whenever you apply, make certain to get suggestions from trusted advisors or buddies. You solely have a couple of minutes to promote your thought and make angels wish to put money into you, so make them depend!
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Imagine in your self and your enterprise
Present your experience, your confidence and your grasp of the numbers. You are your enterprise within the eyes of the traders. Keep in mind, we’re investing in you and your thought. Now we have 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 expertise
Turn into a great storyteller, and bear in mind, “Traders put money into issues they perceive.” If traders aren’t possible to make use of the services or products that you simply’re pitching, they should perceive what downside 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 have to reply this query by telling a narrative.
Know your numbers
Use actual information to assist help your thought. Get suggestions from potential prospects that you may share in your pitch. Outline the market alternative and market dimension.
What does the house you’re disrupting appear like? 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 development.
Discuss up your group
Speak about your group and your advisors. How are they related to your enterprise and what is going to they be capable of do for the corporate? You probably have prior (related) expertise, make certain to share it.
Share your marketing strategy
Describe the marketing strategy and financial mannequin to your services or products. How will you generate profits? What’s the potential income plan and what sort of margins are you able to count on?
Speak about your development technique. Be reasonable, however suppose huge. Who’re your present purchasers (or beta purchasers) and what’s your chance to generate income? How quickly will this occur?
Be clear about your ask
Remember to state particularly how a lot cash you’re asking for and what you propose to do with it. What’s going to the funding provide help to do? How will it get you to the following stage of development?
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Have an exit technique
Traders are fascinated by your exit technique, so make this part of your pitch. What does the panorama appear like for an exit? Who do suppose are doable acquirers? Do you’ve gotten any connections to those firms that you may leverage when the time is true?
Comply with up after your pitch
After you’ve pitched your enterprise, you should definitely observe up inside 24 hours to reply any questions. This provides you a chance to make clear any points, helps you to make one other touchpoint, and reveals that you’re up to the mark. It could actually additionally provide help to stand out, as a result of not everybody takes this step!
Keep in mind, you solely want one “sure” to get the ball rolling! Use the next tricks to get your entrepreneurial desires funded, and also you’ll be one step nearer to startup success.
This text was initially revealed in October 2018.