Tips to Wow Potential Investors
Kim Kovacs, CEO of OptionEase (http://www.optionease.com/) tells you why to move your data to the cloud. Listen to these six benefits to having your company in the cloud, and how it can improve your business.
- You have 30-60 seconds to impress & make your point
- Convey energy & passion for your idea
- Anticipate the shotgun approach
- Don't be afraid to acknowledge the unknown
- Explain your idea in simple language & easily defined terms
So let’s talk about your first sort of pitches to an investor. So it depends on obviously the stage of investing. So there’s a lot of tips in wowing an investor but let’s focus on sort of earlier stage company in financing.
The first one is you have a very short period of time to impress your investor and I don’t mean to you know schmooze them but really to relay what your message is, what is your company doing in a very short period of time and I’m talking 30 to 60 seconds. You might get a fast pitch competition that gives you 10 minutes but you’re going to lose them after a minute if haven’t really engaged them. And part of that is, are you energetic. Are you excited? Do you really have passion for your idea? Are you articulate? Are you able to boil things down to a language, a common language that doesn’t confuse or try to use too many acronyms and things like that? So you‘ve got about 30 to 60 seconds to do that.
The other one is be prepared. So once you’ve given your pitch to your investors, your potential investor they’re going to come back at you with questions and it’s going to be a shotgun. They’re going to ask you about this and that and the other thing – and you’ve got to be really ready to rapid fire, but also keep in mind that you don’t have to have the answer right then and there for every question.
It’s okay to say you know I know this much about that question maybe it’s a market study or a competitive analysis or something. Know a little bit about it for sure but also say I’m going to go and research this or let me get back to you on that question. Let me go back to my research and respond back to you know in a – you know, certain period of time.
So it’s okay to do that but not all of it. So, if they ask you about your financials and you don’t know or the market and you don’t know then you’re going to come off as not credible.
The other one is the kiss method and I think I mentioned this before. So keep it really simple. You don’t want to introduce a lot of complex things. You’re business may be really complex. “I’m in a regulatory environment. I can get really complex really fast.”
You don’t want to do that because you’re going to lose that, you’re going to lose your audience and so you want to keep it really simple, hit the high points why is this is a good business, why is this is a good business model and most importantly why you, because the investor is investing in you.
So you have to be the confident leader. You’ve got to show that you can deliver this product or service in the market place and then they’re going to find you.