Tips To Successfully Secure Your Funding Round
If you’re a financial professional hoping to secure outside investments to boost your company, you might be tempted to focus on style over substance. After all, yours is far from the only enterprise out there looking for additional capital. With so many other voices vying for attention from investors, you could be forgiven for believing you need to concentrate on being the loudest or the most exciting. Although it’s true that there’s more than a little bit of showmanship involved in the process, a straightforward presentation based on solid data and a surefire value proposition can take you much farther than flash alone. It’s important to remember that investors are looking for a safe bet, and the better you are at showing your strength, the more successful you’ll be.
Crafting the Perfect Pitch
As you sit down to focus on how your organization will approach your funding round, it’s a good idea to start by identifying your targets. Securing a high-quality lead backer at the onset is crucial, as having the right person at the forefront is more likely to inspire confidence in the rest of them.
Once you have your target list completed, it’s time to think seriously about the pitch you’ll make. Among the most important elements to include are what makes your idea stand out and how your company is structured to make the most of it. Be careful not to get bogged down in pie-in-the-sky emotional appeals and instead concentrate on clear, concise data. Show that you understand your ideal customers, how your solution answers their needs and how you expect to compete against the rest of the market. Never forget that investors are primarily interested in their own profitability, not necessarily helping you achieve your goals.
This means there needs to be a strong emphasis on financial forecasting with data that shows you understand the industry and what it will take to succeed. Also, it’s critical that you provide an accurate timeline that shows how soon your company will be able to turn a profit. It may not be as flashy as some of the pitches made on business reality TV, but it means you will stand a better chance of getting the capital you need to keep your company competitive.
When you need to secure additional funding for your business, there’s no substitute for a well-crafted pitch. To learn more about how to be a success in this regard, see the accompanying resource.
Infographic created by Donnelley Financial Solutions, an SEC reporting software company