Investors consider many factors before making the big decision of putting their valuable money into your startup. In this article, we will talk about the 4 things that investors do not like about pitches.
An investor looks for certain qualities in the business as well as the business owners while accepting their offer for investment in the company. Investors see beyond your business, its profitability, and its current standing. There are several things that you need to take care of while making a pitch even on a startup investment app.
Without further ado, let’s get into the things that can make an investor uninterested in your pitch and how you can overcome them, and make your pitch better.
We watched many videos and studied many pitches to identify where you can fill the gaps and secure that super-important funding from the investor. You must be very careful about the things that might put an investor off during your pitch.
We have made a list of the 5 common mistakes that make an investor cringe and how you can avoid making these mistakes while drafting your pitch on a raise funding app for startups.
Your financial numbers should be at your fingertips like 1,2,3,4,5! If you don’t have basic knowledge about your business numbers, you are in deep trouble.
The first questions that come to the minds of investors are about finance and business models. If they don’t get a quick, to-the-point, and satisfactory response on the first chance, they immediately lose interest in your pitch.
Whether you are presenting your pitch orally or in writing, you should have a clear understanding of your business’s –
- Annual revenue for the last 3 years minimum
- Month-on-month growth
- Retention rate
- Customer acquisition cost
Your business story is extremely relevant to your pitch. However, few businessmen give too much relevance to the story and churn it into drama to gain sympathy (and later, funding). It’s a big put-off for the investor because he/she does not find you authentic anymore.
You must cut the drama and get it real before the investor loses interest. Most investors don’t invest in startups and small businesses that share a too-emotional story.
Put facts in your pitch that back your real numbers. Don’t make assumptions or quote incorrect sources that make the investor question your validity.
If you are worried about speaking too much during your pitch, you should consider approaching an investor through a startup funding app. You would appear much more calculative and credible this way.
Investors like ambition but they become unhappy when you go overboard with your claims.
They want you to have a charming personality but they don’t want you to be overconfident. They want you to have long-term goals but at the same time, your goals should align with your vision. You have to draw a thin line between the two if you want to win over the investor.
If the loose ends don’t connect, your investor will move on to the next pitch as quickly as you move on from a boring web series.
You must be very careful about presenting yourself and your business to investors who are willing to invest online in startups. In most cases, you just have one chance to impress the investor and get the funding. So, the first impression is actually the last impression here. You must strike a balance in every aspect of your business and your personality to align with the investor in the first go!