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"How Do I Convince Investors To Invest in My Start Up - "

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11/13/2014 “How do I convince investors to invest in my start up?

” |

“How do I convince investors to invest in my


start up?”
This was my response to a question on Quora by an entrepreneur who was planning to pitch his idea to
investors.

Investors will invest in your startup if they are convinced that their investment in your venture will
multiply over a 3-5 year period. Therefore, to convince someone to invest in your venture, you need to
excite them about the business case underlying your concept or idea.

Of course, the ideas has to be good, it has to address a large market opportunity, the value proposition
has to be strong and the product/concept/service has to be (or has to be thought out well enough) to be
well delivered. But while these are necessary conditions, they are not su cient conditions for someone
to invest in your venture.

Hence, while presenting, ensure that your pitch focuses on what you intend to do, how you plan to
implement it, AND how you will make money from it, what your scale of aspiration is and why you and
your team is the one they should bet on.

Most entrepreneurs make the mistake of diluting the pitch with a lot of detail of the operations, which
of course will be of interest to investors… but only after and only if they have an interest in
participating in your journey.
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11/13/2014 “How do I convince investors to invest in my start up?” |

Investors are interested in the business case… not just details of the concept or the product. A
case for“”the same. (Most rst-time entrepreneurs
Follow
concept and product is di erent than the business
make the mistake of elaborating on the concept as every
Get the business).
new post E.g.delivered
for someone presenting for a e-
tailing venture, the investor would be interested
toinyour
knowing your competencies or plans on supply
Inbox.
chain, warehousing, procurement, customer acquisition, etc. Not just about how cool your web
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platform is.
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Focus on key aspects rather than u around your business case. In most cases you will get a 20-
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30 minute window to present. You will have 10 – 15 minutes to make your case with 10 – 15 minutes for
Q&A. In fact, in most cases, you would have either got their attention or lost them in the rst few
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sentences. Rehearse your opening lines… once you get through this, the rest is the easier part. If you
don’t get their attention and interest in the rst few sentences, the rest really won’t matter that much.

“According to Gartner the market is 8 bn USD globally” type of line has no meaning for
investors. At startup stage, investors are interested in knowing what you are going to do in the next
few quarters. Of course, they would be keen to know whether the market is large and how large. But in
most cases, industry reports on the size of the industry is no indicator of the size of the opportunity you
are addressing. You should focus on presenting your plans and what you intend to get to in the next
few years.

Happy pitching.

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This entry was posted in All articles, Funding for startups and tagged funding, pitching on June 8, 2013
[http://thehubforstartups.com/2013/06/08/how-do-i-convince-investors-to-invest-in-my-start-up/] .

3 thoughts on ““How do I convince investors to invest in my start up?””

Manish Manglani
June 8, 2013 at 3:58 am

This is a great peice of information.

Mahesh Nair
November 5, 2013 at 3:20 am

Thanks Prajakt, waiting to see you come out with a book with all these inputs compiled at one place for
startup guys. Happy Diwali

Prajakt Raut Post author

November 5, 2013 at 4:48 am

Thank you Mahesh. Glad you nd the articles useful.

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