English
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JapaneseHaving been involving in raising capital for many years of my career, I have learned some things that, if avoided, will increase your chances of raising the funds you desire. I encourage you to check out my other articles on Raising Capital.
There are a lot of resources to tell you how you should pitch, what your pitch deck should include, how you should prepare for the pitch, etc. but it is just as important as understanding what you should NOT do when pitching for capital. Here are a few tips:
- Do not come to the presentation unprepared. If you cannot address a simple objection raised, your presentation is essentially over.
- Do not provide too little of details, or do not provide too much detail in your pitch deck. – Most people don’t realize that the pitch deck should be able to stand on its own. The deck will be circulated among decision makers and frequently these people were not present during your pitch. Conversely, do not load your deck with excessive details about your marketplace, product or service, or financials.
- Do not exaggerate the size of the market opportunity. Focus on your realistic addressable market.
- Do not use unrealistic financial projections. Remember you will need to back these up, and you’re setting yourself up for failure.
- Do not state that you have no competition. There is always competition. Remember these folks listen to people like you everyday and the last thing you want to do is demonstrate your lack of knowledge on your competitive landscape. They easily could have listened to a pitch from your competitor earlier that week.
- Do not come into the presentation with arrogance like you have the wholy grail. If you are that great of leader and have the best product, why do you need the investor? Everybody should be throwing money at you.
- Do not bash your competition. Your competition doesn’t have to be horrible in order for you to be good. Focus on what you do well, and not on what your competition doesn’t do well.
- Do not forget to “ask” for the money. Sales 101 – you have to ask for what you want. You spent all this time and money on your presentation, don’t forget to ask for the funding.
In my experience working with companies on raising capital, people often are intimidated by the process and make it out to be more than it really is. If you have a good business plan, a strategy on how to succeed in the market, are solving a realistic problem, and demonstrate how your investor is going to receive a sizable ROI, there are going to be investors who will want to fund you.
Try Changing Your Lens, and looking at your company through the eyes of a potential investor. Would you fund your company?
If you would like help raising capital for your company, please reach out to me.
