Tips for pitching in the upcoming season
August 23, 2019 / Source: GTAN
GTAN helps accelerate companies into becoming market leaders in their industry by bringing together investment, experience and knowledge. GTAN Angels have invested in dozens of startups and are always looking for quality, early-stage companies that are investment-ready.
If you are an entrepreneur looking to pitch to our Angels this coming season, read our quick tips for a great pitch:
At GTAN Investor Meetings, Entrepreneurs have 12 minutes to present and five minutes for a question and answer period. Ensure you are using this time wisely and showcasing the highlights of your business – smaller details can be discussed in Due Diligence.
If you have a working prototype, consider showing off your product during the networking portion of the evening. Showing investors how a product works can help peak their interest and open their wallets. It’s crucial to discuss actual sales or anticipated orders. This is also where your research on testing or proving your business concept comes into play. Include results from surveys, focus groups, and product tests to show any customer insight you have gained.
Inc. says the biggest mistake made by entrepreneurs during the pitch is rambling on about their technology or business, rather than sharing information about the financial opportunity and how they and the investor will make money together. At the first meeting, investors typically assume that the technology you’re presenting works. Entrepreneurs should spend only a few minutes talking about the business mechanics; an interested Angel investor will ask for more details in the Q&A or Due Diligence.
Entrepreneurs can sometimes mix their “aspirational messages with statements of their current situation, and hope gets woven into fact,” says GTAN Angel Benton Leong. “Logos and branding might appear on slides about partners and acquirers when in reality, the founders have not even started conversations with these parties.” Be very clear about your company’s achievements to date and also honest about your company’s shortcomings or challenges. Angels do not expect perfection; they know how hard it is to build the right team and the perfect product. Identify challenges as opportunities for Angels to assist you. Leong also notes that some investors respond better to a chance for them to help you, than they do to expectations of financial return.
Start by asking yourself this question: “What am I really passionate about?” The answer to this question will be considerably different than the answer to the question, “What is my idea?”
Angels invest and want to build relationships with entrepreneurs who have a fire in the belly, a consuming passion to move the world forward. Research has shown that Angel investors weigh passion as one of the top three factors or variables that influence their ultimate investment decision. Passion is contagious.
According to Entrepreneur, Angel Investors invested more than $20 billion in 2010. To get a slice of that pie, you need more than a strong conclusion: you also need an exit strategy that informs investors how they’ll get their investment back and more. Angels could love your idea, but if they don’t think they’ll make money on it, they’ll share their wealth elsewhere.
Angels need to see a clear and reasonable expectation of an appropriate return on the investment in order to invest. Pitching your idea to Angel Investors can be scary, but when you have a great idea that you’re passionate about, a smart business plan and a great pitch, you can wow investors and get the financial backing you need. Think you’re ready? Apply to present here.