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7 invaluable tips for attracting startup investors

These seven tips are great tried and tested methods to making your pitch a little more alluring to investors.



There are plenty of success stories of people wading through blood, sweat, and tears to get to a place where their startup dreams are a reality. Do you know what all of those success stories have in common? In a word: startup investors.

So, how do you get people to give you money to help your startup? You give them a pitch so good that by the end of the meeting they’ll be throwing money at you. That might sound a little far-fetched but as you will see after reading this article there are certain ways that you can make your pitch irresistible.

1. Prepare, then practice

Make notes, research other successful startup companies and find out how they pitched, simply do everything in your power to make sure that you are prepared for the big meeting. Once you feel that you are prepared it helps to practice your pitch in front of people. Getting a fresh set of eyes and ears will help you to improve your pitch strength and it might help you get over any public speaking phobias.

2. Tell a story

When you pitch you need to tell a story, this is how you make a strong connection with prospective investors. If they feel like they know you as well as your business within ten minutes of your pitch you are more likely to get them on board. Use evocative language that shows your ambition and your willingness to take on the world, draw them in with your history and background before you start hitting them with numbers and stats.

3. Be brave, be bold

One of the most important things that investors look out for is passion. So, when you meet with them make sure that you are the boldest in the room, don’t be cocky but be confident in your business and convey that to the investors. Don’t use stale language, be excited when talking about action plans and how their investment will shake up the market and accelerate your company’s growth.

When pitching your business to potential investors, simplicity is the key. Make your approach as simple as possibly by staying on track with your company's vision and goals while explaining things in a non-technical manner. (Source)

When pitching your business to potential startup investors, simplicity is the key. (Source)

4. Don’t overcomplicate things

Keeping things as simple as possible is always a good idea when pitching to investors. Keep in mind the fact that they see hundreds of people just like you every year so you need to grab their attention and never let go. Make sure you avoid insider vernacular that people outside of your field won’t understand. Aim to develop a pitch that everyone and anyone can follow.

5. Sales, sales, sales

When pitching you are basically asking strangers to give you money which begs the question: what’s in it for them? You need to frame your pitch in a way that shows the prospective investors that you have your head screwed on but need some money to take your startup to the next level. You can do this by talking up the sales. Show them that you can generate money and frame the numbers in the context of a timeline.

6. Make your timelines bulletproof

Speaking of timelines, you have to make sure that yours are bulletproof. As I mentioned above, preparation is key to success when pitching, and you have to prepare your timelines as much as possible. The investors need proof of your worth which a timeline can clearly display. If your timeline is incorrect, either you are a liar or you didn’t spend enough time on the pitch. Either way, you won’t get any money.

7. Clearly explain exit strategy

All investors, no matter how much they are interested in you, want to know what it will look like if your business relationship comes to an end. It’s your job to put their mind at ease and show them clearly how they will get their money back twice over before that will ever happen. Put their minds at rest by showing them that you have an eye constantly glued on the future.

The seven tips above are great tried and tested methods for making your pitch a little more alluring to investors. The next time you are due in for a meeting be sure to check off the tips on this list to get the best results.

(Featured Image by DepositPhotos)

DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation in writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.

With a background in business administration and management, Tess Pajaron currently works at Open Colleges, Australia's leading online educator. Tess has been the Community Manager for Open Colleges for over 4 years. She likes to cover stories in careers and marketing. You can find her on Twitter.