Few Mistakes An Entrepreneur Must Avoid While Pitching Angel Investors
The major challenge that most startups face today is about impressing the Angel Investors. As we all know, your startup team must have an effective elevator pitch if you want to attract the attention of any angel investor groups. Although, an elevator pitch is nothing but sharing the “how, what, why, when, who and where,” about your startup venture, it becomes crucial or the most tricky as you must stuff everything in a single speech within the time span allotted to your team at the elevator pitch session.
No investors like lengthy and boring pitch about a startup. Instead, they need something that is quick to catch and draw their attention instantly. And it goes same with written applications as well. Most of the investor groups read the first couple of sentences from the written pitch applications and decide whether it is worth their time and money or not.
So, if you want to impress the Angel Investors with your Startup Pitch, then make sure to avoid the following mistakes while making an elevator pitch:
Lengthy Elevator Pitch:
The ideal rule while delivering your Elevator Pitch is that it shouldn’t exceed more than one minute. These opportunities to pitch your idea would arise either in an elevator, at a cocktail party or even among friends or acquaintances. Remember, the startup culture is on the rise and there are many individuals coming up with new ideas, giving each high competition and less time to impress an angel investor. It is highly important to prepare a short but effective elevator pitch that explains your product within a minute. Once you have got the attention from an investor, you can always elaborate on your product idea through PowerPoint presentation or a promising business plan.
Too Many Facts and Numbers Without Acknowledging The Real Problem:
Facts and figures are important to define the current state of the market and its future prospects. However, a startup pitch with too many facts and numbers would only bore the angel investors not impress them. Investors are most of the time aware of the market scene. They are more interested in your startup idea and what problem does it solve for the end users. Instead of stuffing your presentation with too many facts and figures, try to tell a story how your product solved a real life problem. Let them know how practical your startup idea is and how it can benefit a lot of people instead of hitting them with too many statistical data.
Boasting About Sales Forecasts::
Many startup founders start believing once they generate good number of sales in a short span of time that, they will attract a lot of angel investors. Generating initial sales may be a good factor, but that’s not enough to get the investment. You can’t possibly win over the investors by boasting about your initial sales figures. Investors are often interested in long term goals and they are not fascinated by early sales history. They are aware of the fact that eventually the whole market, revenue streams, and prices would change as your business grows. Hence, they are more interested about the plans of the startup business for the future rather than sales history. The best way to impress the investor is to focus upon the problem that your startup is designed to solve. No matter what the market scenario is, if your startup can still solve the problem, then it has the potential to generate returns in the long run.
Not Flexible With Your Business Plan:
Many startup founders believe that they have an awesome business plan and often tend to stick to it forever. Sometimes, it may work if you have a unique concept while sometimes it may be too limited according to the investor. Your startup idea may impress an investor a lot and they might suggest a few changes to your business plan which could generate better revenue. This is where it gets tricky. Now, if you are not flexible enough to appreciate those changes, then you must say good-bye to your investment. Remember, these investors might have greater and longer experience in the market and their ideas or inputs can’t be neglected just because it hurts your ego to make changes to your business plan.
You must understand that the fact that your startup idea may be your passion, but for an angel investor, it is just another business venture that either has a business potential to generate ROI or not. In order to convince these investors, you must pitch your startup in a way that it shows promise at the same time solves a real problem which is one of the most important factors that guarantees great return on investment for the angel investors.
So, next time, you must make sure to avoid the above mistakes if you wish to receive any funding for your startup.