HOW TO PITCH TO INVESTORS: Practical Real-Time Tips to Implement Now

How to pitch to investors
HubSpot Blog

If you’ve ever wanted to invest in an entrepreneur’s startup, but don’t know where to start or what the process looks like, then this guide is for you. Here is a detailed guide on how to pitch to investors.

How Do You Find Investors to Pitch To?

You may be wondering, how do I find investors to pitch to? The answer is simple: start by asking friends and family. If you have a network of people who know what they’re talking about, that’s the place to start!

You can also use services like AngelList or Upstart. So, these platforms allow you to create a profile where potential investors will find you based on keywords that describe your business idea and goals. Once they click on your profile, they’ll see all the information about why someone should invest in what you offer (and how much money it would take).

If none of these options work out for whatever reason (maybe because there aren’t any funds available), don’t worry. There are plenty more ways besides traditional channels such as banks and venture capital firms that require long-term commitments from both parties involved in doing business together.”

Can You Pitch an Idea to Investors?

Can you pitch an idea to investors? Yes, you can pitch an idea to investors. But not all investors will invest in ideas (especially if they are small).

To get started:

  • Have a business plan that is well thought out and well-researched. This is the most important thing for any investor or entrepreneur looking at your proposal; many successful entrepreneurs have said that their most significant asset was their ability to write detailed and comprehensive business plans before starting their businesses!

How To Pitch To Investors

When it comes to pitching investors, there are a lot of questions you need to answer. How much money do you want? Where will the investor get their return on investment? What’s the exit strategy that makes sense for this venture capital firm? And most importantly: how do we make sure we can make money after this investment?

The good news is that once you know these things and have worked through them with your potential investors, they’ll be able to help guide you through the process so that when they say yes or no at the end of your pitch, they’ll have good reasons for doing so—and not just because they think your idea is excellent.

#1. Know the investor.

The first step in pitching a potential investor is to know them. The best way to do this is by getting to know their background, interests, and portfolio. Most investors have a website that they use as a place where they share their work and speak about their experiences with investing. Going on these websites can help get more information about an investor’s style of investing or how they invest. It’s also good practice for future investors who may want to pitch you later down the road!

Once you’ve thoroughly researched your investor, it’s time for face-to-face networking! Talk about what kind of investments your company makes—and ask if there are any specific areas where your company could help them (for example: “we’re looking into building our software platform”). And don’t forget: even though it may seem common sense from here on out since we’ve already covered all these points above before when talking about pitching investors…

#2. Know the venture capital firm.

There are many types of investors, and some have different strategies for evaluating startups. Some VCs focus more on building a portfolio of companies they can sell down the line; others want to make money from their investments immediately. Some VCs may prefer to invest in early-stage companies that have yet to prove themselves (or don’t have a proven business model). In contrast, others may only be interested in late-stage investments with no revenue or profit.

#3. Understand what your investor’s background

Understand what your investor’s background is and why he or she is right for you as an entrepreneur: Do they have experience working with small businesses? Did they start their careers at large corporations before moving into entrepreneurship? Did they come from an entrepreneurial family like yours? Knowing these things will help you pitch better when talking face-to-face with an investor because you’ll know exactly where they’re coming from before explaining yourself further.

#4. Know what’s important to the investor.

The first and most crucial step in pitching investors is to know what they’re looking for.

#5. Goals

What are your investor’s goals? Do they want to make money, or do they want to do good in the world? If it’s the former, how much can you help them achieve that goal? Are other people involved in this venture interested in seeing the project succeed (for example, a board member)? If so, how will their participation affect your pitch and its outcome?

#6. Interests:

What kinds of investments does this person like working on (or investing their money into)? How does your idea align with those interests—and why should we care about what aligns with theirs anyway?

#7. Past Investments:

What kind of experiences has this person had with similar projects before—and did those experiences work out for them at all times or sometimes? How does your idea stack up against previous pitches made by others who were trying something similar but didn’t get funded successfully either because their ideas weren’t strong enough or because there wasn’t enough demand out there yet then–which could mean another reason why no one else has tried doing something similar before now either!

#8. Know the exit strategy and how they are going to make money.

If you’re pitching an investor and they ask you how much money they should expect to make, be ready with an answer. If it’s a VC firm, they’re probably going to want to double their money back in six months or less—and if that’s not what you can deliver, then don’t pitch them.

However, if it’s another type of investor (e.g., angel investors), figure out how long it will take for them to get paid off (usually six months). And if this is your first time pitching investors at all, keep in mind that there are no hard-and-fast rules about how much money each investor should make or when they’ll be paid off; it depends on several factors, including market conditions at the time of investment and other variables such as whether or not there was previously any previous relationship between two parties involved in making such an arrangement possible (e.g., family members) before now!”

#9. Know what makes you better than competitors and tell them.

When pitching investors, it’s essential to know your competitors. What do they offer? How are they different from you? And how do you stand out from the pack?

You should also know what makes you better than them. This can be a tricky thing to determine without research or experience in the field, but here’s a tip:

#10. Know their unique selling proposition (USP).

USPs make one offering or service better than another—buyers will always choose solutions with strong USPs over those that don’t have anything special about them. If someone is considering buying something from us, ask yourself: What is my USP? How does that make me different from everyone who offers this same thing?

If you can show you have a clear path for your potential investors to make money, you’re much more likely to get a yes from them. You’ll also be able to show how your company will grow and what the investor can benefit from its success.

If there’s doubt about your business’s success, don’t bother pitching investors on the idea of investing in it; they won’t bite. Instead, focus on making sure that their investment makes sense for both parties involved—you as an entrepreneur and them as an investor—and then find ways for those two ideas to align with each other so that everyone walks away happy after closing their deal.

What Should Be In Your Pitch Deck?

You may have heard that investors are looking for “skin in the game”—they want to invest money into projects that will benefit them somehow. If you can show them how their investment will help you make something better than before, then they’ll likely agree to take it off your hands (and give you money). Here’s what should be on your pitch:

  • What shouldn’t be on your pitch? Don’t include anything controversial or difficult-to-state facts; this usually makes people uncomfortable enough without having any extra baggage added onto their nerves by reading about it! Also, avoid using jargon unless necessary; try explaining things simply with numbers and charts so anyone can understand easily (but don’t forget those pesky words!).

Can You Get Paid for an Idea?

Pitching investors is a lot of work and will not be easy. You’ll need to spend hours on the phone and in person. You’ll have to put yourself out there and maybe even get rejected or turned down by someone who doesn’t want your idea. But if you’ve got something that could change the world (or at least make them money), then all those things should be worth it!

The first thing I’d recommend is thinking about how much money would be needed for this project before committing yourself full-time to getting started with your idea/project/etc… This will help prevent burnout once things start rolling and deadlines start looming over your head—if there isn’t enough funding available yet, don’t go ahead with anything until there is!

Once again, nothing beats having an actual prototype or product ready beforehand so that people know what exactly they’re investing into when they invest in your company–so make sure everything looks good before pitching anyone else!

How Do You Get in Front of Investors?

To pitch to investors, you need to become a top-tier candidate. The best way to do that is by first understanding what makes an investor successful and then doing everything in your power to emulate their success.

The saying goes: “You must know yourself before others will know you.” Let’s look at how knowing yourself helps guide our process:

  1. Understand what investors are looking for.
  2. Build a team around you that can support your vision.
  3. Build a product to solve real problems.

Pitch Investors Live

Finding investors is not enough; you need to connect with them. The best way to do this is through live pitches.

You can find investors through word of mouth or online listings such as AngelList and AngelList Pro. If you want a more direct approach, try contacting local angel networks (like Y Combinator) that specialize in funding early-stage startups in your area or industry sector.

If you can’t find any investors in your area, consider flying out to a conference or meetup. While it may be expensive and time-consuming, connecting with an investor personally helps them decide whether or not they want to fund your company.

How do I get in touch with angel investors?

If you want to network with investors, there are several ways you can do so.

  • Contact them through their website: This is the most effective way of getting in touch with an investor and will give you more time to discuss your project than other methods.
  • Contact them via LinkedIn: This method works well if the investor has an online presence and allows them to connect with others interested in investing in their company or project.
  • Connect with investors at conferences and networking events: These events provide opportunities for investors (and potential entrepreneurs) to meet each other face-to-face, increasing the chances that they’ll share information about themselves and their experiences running businesses or raising capital through investments.
  • Connect with investors through mutual connections: If someone knows both parties involved, then this might work well, but it depends on whether either party feels comfortable sharing personal information publicly on social media platforms like Facebook or Twitter; if not, then this option probably won’t yield positive results either way!

How do you connect with investors?

Investors are everywhere, and you can connect with them in many ways. The most effective way is by using social media platforms like Twitter and LinkedIn. On these sites, you will find investors with similar interests as yours, which means they may be more likely to invest in your company if their friends or colleagues know about it. If not on these networks specifically, look for other ways of connecting with potential investors: networking events like meetups and conferences; investor clubs (these often require an annual membership fee); directly contacting successful entrepreneurs for referrals; emailing individual investors who have previously funded other companies (this can be a long shot).

How to Pitch Investors Startups

If you are looking for investors, there are a few things that you need to keep in mind.

First, know your audience and who can help you achieve your goals through investing.

Second, create a pitch deck that shows how the startup will benefit from outside capital and why it’s worth investing in them.

Thirdly, ensure that the amount of money being raised isn’t too large; otherwise, it will be difficult for them to understand what they’re getting into with responsibilities and expectations regarding ownership percentages upon exit strategy completion period (usually 3-5 years).

Fourthly: provide proof of concept – e.g., demo videos or case studies showcasing success stories where these methods have been used before by similar companies so investors feel confident enough about making this decision based solely on numbers alone instead of just listening blindly because they heard rumors about another company doing something similar earlier today while waiting patiently outside Starbucks while waiting frantically hoping someone would notice them immediately when they finally got inside…

How do I contact investors?

It’s important to remember that investors are busy people. They have their businesses, families, and friends, so you should approach them with excellent care and respect.

When you first contact your investor(s), try not to sound too desperate or needy—this will make them less likely to invest in your idea! Instead, be relaxed and calm as if this has been done many times before (and hopefully it will!). If possible, try sending an email ahead of time saying, “Hey! I’m thinking about doing something with my life.” This shows that even though you haven’t done anything yet, it still seems like a good idea, at least enough for someone else out there who might be interested in investing their hard-earned money into helping this new startup grow into something successful in its first few years of operation/existence etcetera…

Summary

You can pitch an idea to investors anytime, anywhere. You don’t need anything special or fancy to do it—just some good information and a willingness to learn! The tips above will help get you started.

FAQs On HOW TO PITCH INVESTORS

What should be in a 5-minute pitch?

What your competitive advantage is and why your team is the best for the job?

How to make a sales pitch?

  • Make it short.
  • Make it clear.
  • Explain who your customers are.
  • Explain the problem they’re facing.
  • Explain how your product addresses their needs.
  • Describe what success will look like as a result of using your product.

How do you email the pitch to investors?

  • Make It Incredibly Clear What Your Startup Does.
  • Sell The Dream.
  • Tell The Investor What You’re Looking For.
  • Explain Why You’re A Good Fit For The Investor.
  • Attach Your Pitch Deck.
  • Use Your Company Email.
  • Watch Out For Spam Filters.
  • Personalize Your Email.

References

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