ReportWire

Tag: Pitching Investors

  • We Built a 7-Figure Business Without a Single Investor — Here’s Why Saying No to VC Was Our Smartest Move | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    You’ve heard this story before: a couple of college kids launch a startup from their dorm room. Surrounded by engineers, finance majors and future founders, venture capital wasn’t just common — it was expected. So when my co-founder and I launched Prepory, our college admissions coaching company, we assumed we’d need funding to be taken seriously.

    We entered a pitch competition and came in second. No check. We reached out to investors. No bites. We had a choice: give up or keep building.

    We kept building.

    What started as a one-person operation helping students in our local community has grown into a seven-figure, global company with nearly 100 team members. We’ve supported over 14,000 students, partnered with school districts and institutions in multiple countries and built one of the most trusted brands in college admissions — all without a single outside investor.

    Here’s why we said no to VC, and why bootstrapping was the smartest decision we never planned to make.

    The pressure to raise

    In elite academic circles, starting a business often goes hand in hand with chasing venture capital. I pictured the high-stakes pitch rooms, the dramatic investor meetings — scenes straight out of The Social Network. But after our early efforts fell flat, we stopped trying to win someone else’s approval and turned our focus inward.

    We obsessed over our product, our client experience and our outcomes — not “scale.”

    One month before our one-year mark, we hit $100,000 in revenue. It wasn’t a headline-grabbing number by Silicon Valley standards, but it proved something more important: we didn’t need permission to grow. We just needed to execute.

    Related: Most Startups Ignore This One Asset That Makes or Breaks Their Success

    What bootstrapping taught us

    In hindsight, bootstrapping didn’t just work — it shaped the business in ways VC money never could.

    Every dollar mattered, which meant we tested fast and paid close attention to what customers wanted. Client feedback shaped everything. We pivoted early on from a B2C model to B2B — realizing that one school contract could bring the same revenue as ten individual clients. That insight wasn’t born from a boardroom; it was born from necessity.

    Bootstrapping also made me a better leader. I didn’t start by managing dozens of people. I started with one, then five, then ten. That kind of slow, intentional growth gave me room to develop as a leader — learning how to listen, communicate clearly and lead with clarity and care. There was no pressure to scale overnight, so we could prioritize culture, values and quality.

    The hidden cost of raising too soon

    VC can be a powerful accelerator — but if you raise too early, it can also be a trap.

    Many founders take funding before they’ve found product-market fit. They shift their focus from solving customer problems to pleasing investors. Instead of building a strong foundation, they’re stuck managing burn rates and expectations. Teams get stretched. Quality suffers.

    We built slowly. That meant we stayed close to our mission and recruited talent who were energized by the opportunity to build something meaningful. Today, we outperform companies twice our size because we’ve built a team that shows up with purpose — and we’ve stayed aligned with what matters most: helping students reach their full potential.

    Related: How to Scale a Business Without Wasting Millions (Or Collapsing Under Your Own Growth)

    Should you bootstrap?

    Ask yourself this: What do you actually need the money for?

    If you’re building a product that truly requires upfront investment — hardware, tech or time-sensitive development — funding may make sense. But if you’re starting a service-based business, you might not need capital to get traction.

    Bootstrapping requires resilience, patience and a tolerance for delayed gratification. But it gives you full ownership of your company, your vision and your decisions. Today, we have the freedom to invest in growth on our own terms.

    People still ask if we’d raise money now. My answer? Not unless we have a strategic reason to. Not because I’m anti-VC, but because we no longer need it.

    Bootstrapping gave us something far more valuable than capital: it taught us how to build a resilient, values-driven, adaptable business. And if we ever decide to raise, we’ll do it from a position of strength — not survival.

    You’ve heard this story before: a couple of college kids launch a startup from their dorm room. Surrounded by engineers, finance majors and future founders, venture capital wasn’t just common — it was expected. So when my co-founder and I launched Prepory, our college admissions coaching company, we assumed we’d need funding to be taken seriously.

    We entered a pitch competition and came in second. No check. We reached out to investors. No bites. We had a choice: give up or keep building.

    We kept building.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

    [ad_2]

    Daniel Santos

    Source link

  • 7 Mistakes That Sabotage Your Startup Fundraising (And What To Do Instead) | Entrepreneur

    7 Mistakes That Sabotage Your Startup Fundraising (And What To Do Instead) | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    With U.S. venture capital fundraising at a 6-year low, raising investor capital for your startup has become more challenging than ever. Potential investors are tightening their budgets and adopting a “wait and see” approach before putting their capital at risk. Yet, some of the best startups — like Airbnb, Uber and Square — were born during market downturns. So, if you’re an entrepreneur seeking capital in this environment, you might wonder about your chances of success.

    As a serial entrepreneur and now CEO of Builderall, I’ve heard over 3,000 pitches and helped founders raise millions. From my experience, seven common mistakes often derail attempts to raise investment capital. If you’re looking to raise money for your startup in this uncertain economic environment, be sure to avoid the following:

    Mistake #1: Rushing the pitch

    Many founders rush through their pitch, but speed isn’t always your friend in the venture capital world. Your goal is to establish key points and let them resonate, not finish your presentation as quickly as possible.

    Think of it like telling a good joke at a party — you wouldn’t rush to the punchline before everyone has had a chance to grasp the setup, right? The same principle applies when pitching. You want your investors to hang on to every word. But that’s impossible if you rush or gloss over crucial information.

    One effective technique is to use strategic pauses. In between slides or after making a key point, pause for about three seconds to let it sink in and observe your audience’s reactions. Don’t be afraid of silence. Patience in delivery can be a powerful strategy.

    Related: What Every Entrepreneur Needs to Know About Raising Capital

    Mistake #2: Skipping trust indicators and key differentiators

    Balancing detail with brevity is tricky, but it’s essential. There are some critical signals you should share to help build trust and differentiate your business. While most founders want to focus on how great their product is, there are two questions that are arguably more important:

    • Why is your team uniquely qualified to lead this business?
    • How does your company stand out in the market?

    As far as team qualifications, don’t be shy about including specifics on years of experience, prestigious university degrees, previous exits, existing patents and/or impressive startup or corporate experiences.

    I once coached a founder who was struggling to raise capital. After reviewing his pitch deck, I said, “The problem is that you have no real startup experience.” He then proceeded to tell me that he and his co-founder sold their last company for $80 million, but he thought it wasn’t relevant since it was in a different industry. Let me tell you, your previous accomplishments are 100% relevant to whether or not investors will trust you with their money.

    Next, I can almost guarantee that whatever amazing idea you are pitching — we have probably already seen it. This begs the question, how are you going to execute differently when you get to market? This is where your current traction becomes crucial: existing user base, early subscribers, accepted patents and strategic partnerships all come into play. These elements demonstrate that you’re not just another idea but a viable business that is already making waves.

    Mistake #3: Talking too much and for too long

    I know — this sounds like a contradiction based on the first point, but hear me out. Blathering on is another fatal mistake. You should plan for a nine-minute pitch, but you don’t want to “rush through” your nine minutes. Instead, be relentless about what to include – and what to cut – so the pacing feels natural and you’re still covering the key data points that make your business compelling.

    I often ask new founders to introduce their startup in just two sentences: What do you do, and why should I care? After that, you have under 10 minutes to explain the market problem, the market size, your business model, your solution, your traction, your team, and your ask. That means you need to be very specific about what details will tell your story most effectively.

    I’ve seen many founders get nervous and overcompensate by filling the conversation with unnecessary details and fillers. This often has the opposite effect of what they intend. If you talk too much or too quickly, investors might think you’re not being straightforward, or they may get bored and lose interest.

    Related: 5 Innovative Ways for Entrepreneurs to Raise Capital in Today’s Market

    Mistake #4: Forgetting who you’re pitching to

    Remember, you’re pitching to investors, not potential clients. Investors are not interested in how great your product is; they want to know about your market, margins, and differentiation.

    I once sat through a pitch for a young women’s jewelry startup where the founder spent the entire time trying to sell me on the jewelry. As an investor, I wasn’t the target audience and the pitch fell flat. Rather than sell me on the business, she was selling me on the product. When talking to investors, they want to hear about the business opportunity, not the product.

    Mistake #5: Undermining your credibility with weak language

    This might seem like needless semantics, but words like “hope” subtly signal uncertainty, and investors are not fond of taking chances on “hope.” They want clear-cut projections backed by data and logic.

    Instead of saying “we hope,” use phrases like “we will” or “we project.” This shift instantly ramps up your pitch’s credibility. Be definitive; your words should exude confidence, not wishful thinking.

    Here are a few more examples:

    • Instead of saying, “We think our product will be successful,” assert your confidence by stating, “Our product is positioned to be successful.” This subtle shift conveys certainty and strengthens your pitch.
    • Replace “We believe our revenue will grow” with “Our projections show our revenue will grow.” This not only sounds more authoritative but also indicates that your assumptions are based on concrete data.
    • Don’t say, “We aim to capture 10% of the market;” instead, say, “We are on track to capture 10% of the market.” This adjustment demonstrates that you are actively working toward a clear, achievable target.
    • Change statements like “We expect to launch by Q2” to “We will launch by Q2.” This minor change projects certainty and reliability, which are crucial to building investor trust.

    These subtle language changes replace hesitation and probability with assertiveness. It emphasizes that your pitch is built on credibility and supported by a solid, well-thought-out plan.

    Mistake #6: Using broad claims instead of precise data points

    When pitching to investors, generalized claims can raise red flags, making investors wonder if you’re trying to obscure the truth or lack the necessary detail.

    For example, instead of saying, “We have a huge subscriber list,” focus on concrete details like, “We have over 20,000 subscribers.” Specifics not only clarify your claims but also significantly boost your credibility and trustworthiness.

    Here are a few more examples:

    • Don’t say, “Our team has a lot of experience.” Say, “Our team has eight years of experience in this industry.”
    • Replace “Our product is very sticky, and our customers rarely leave” with “Our product has an 89% customer retention rate.”
    • Instead of “We anticipate rapid growth,” say, “Our projections show 30% month-over-month growth in the fourth quarter.”
    • Swap “We dominate the market” with “We currently hold 45% of the market share in our region.”

    These changes in phrasing turn vague assertions into solid, data-backed statements, which help to build investor confidence and convey that your pitch is grounded in reality.

    Mistake #7: Telling instead of showing

    Our final lesson: show, don’t tell. Depicting something visually instead of through words will have a greater impact and be more likely to be remembered. Instead of telling investors, “We have a great interface,” show the interface screens and let them make the determination themselves about whether it’s great or not. Instead of saying, “We’ve grown exponentially over the years,” show a line or bar chart illustrating your impressive growth.

    One more example: telling investors how much your customers love you is far less impactful than showing screenshots of social media posts where your customers are raving about you in their own words. Keep this mantra in mind: less talk, more visuals.

    Bottom line

    Mastering the art of pitching involves more than just avoiding pitfalls — it’s about crafting a narrative that resonates with investors and builds trust. However, by avoiding these seven mistakes, you significantly increase your chances of securing the capital needed to take your startup to the next level.

    In today’s challenging economic climate, precise communication, showing rather than telling, and delivering data-backed arguments will set you apart. Investors want to back entrepreneurs who can navigate adversity and drive their ventures to success. Keep refining your pitch, build strong relationships, and show investors why your startup is the one to bet on.

    [ad_2]

    Pedro Sostre

    Source link

  • Watch the Pitch That Landed $10K in 60 Seconds | Entrepreneur

    Watch the Pitch That Landed $10K in 60 Seconds | Entrepreneur

    [ad_1]

    This episode of Entrepreneur Elevator Pitch may be about child-centric products, but no one is kidding around when it comes to cash. Contestants came ready with serious pitches — and serious funding requests. Will anyone score the hundreds of thousands they’re seeking to grow their business?

    There are many factors at play that can sway an investor’s decision, including this critical pitch component highlighted by Netflix co-founder Marc Randolph: “A product can’t just be useful — it has to be something that a lot of people want.”

    Related: Catch up all seasons of Elevator Pitch

    Quick show rules refresher: Every episode challenges contestants to step inside our elevator and pitch their company in just 60 seconds. A board of investors is watching on a monitor, and if they like what they hear, the elevator doors open and the entrepreneur has the chance to win a life-changing investment. But if the investors don’t like what they hear, the elevator heads to the ground floor, and their shot at glory is finished.

    Watch to find out who wins big and who is sent back to the sandbox on this family-focused episode of Entrepreneur Elevator Pitch!

    Season 11, Episode 2 Board of Investors

    Season 11, Episode 2 Entrepreneurs

    • Nicky Rishi of Miss Poppins, a marketplace that connects parents with expert coaches and a supportive community.
    • Chris Danis of Wet Wipe Wizard, a system that allows for the simple and reliable delivery of Wet Wipes at the push of a button.
    • Tausha LaFlore of Pincer Pal, where fun and learning come together during mealtime.

    How to watch

    Season 11 of Entrepreneur Elevator Pitch is presented by Amazon Business. New episodes stream on Wednesdays on Entrepreneur.com and EntrepreneurTV. Follow Entrepreneur Elevator Pitch on Facebook, YouTube and IGTV.

    [ad_2]

    Dan Bova

    Source link

  • 8 Things Your Pitch Deck Needs | Entrepreneur

    8 Things Your Pitch Deck Needs | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    When entrepreneurs try to shore up funding and management for their ventures, they often summarize their business strategies in an abbreviated presentation document called a pitch deck. A pitch deck is typically utilized in meetings with clients, partners and co-founders and when presenting to investors.

    There are two things to remember when creating a pitch deck to attract and interest potential funders. Your pitch deck’s visual appeal (including the text length of each slide) is the first element. The second element is the actual content of your pitch deck, which is critical and challenging to create.

    Related: Successful Fundraising Begins With a Stellar Pitch Deck

    1. Vision statement and value proposition

    Whether they’re on the same slide or are presented separately, each of these needs to be one short sentence or statement. These statements will show prospective investors what your firm does and the value it can bring to consumers. It’s a general rule that these statements must be both clever and concise.

    Related: How to Think Like an Investor When Preparing Your Pitch Deck

    2. Problem statement

    If your company isn’t addressing a compelling, pressing problem, something’s wrong. Explain the issue your company is managing and who this issue affects (i.e., your target market). When describing the case, it’s essential to tell a story that prospective investors can identify with. This will aid in conveying the nature and purpose of your company.

    3. Target audience and market opportunity

    You can use this section to elaborate on your target market and the size of your estimated customer base. Explain to potential investors how big the market is and where you want to position your company.

    Collect as much data as possible on existing market purchases to give investors an accurate market size. If necessary, split your market into segments.

    While you might be tempted to define your target market as extremely broad, you should show investors you have a particular and addressable market. Doing so will add credibility to your presentation.

    4. Product — Show the solution

    At last, you can describe the product or service you’re bringing to the market. Explain to potential customers who use your product or service how it solves the issues you highlighted in the second section above.

    Describing your business here builds up the problem and allows you to define how acute or painful it is for your target market. Then, you can tell how your product or service can come to the rescue to solve (or help solve) the problem.

    Whenever possible, use pictures and stories to describe your solution. Showing is almost always better than telling.

    Related: Pitching Investors With Customer Motivations Won’t Work

    5. Business model or revenue model

    After introducing your product or service, you should discuss its potential advantages and benefits. Some ventures rely on advertising revenue rather than consumer purchases to cover their business overhead and profit. Therefore, make sure you provide some explanation of the financial mechanics here.

    6. Sales and marketing approach

    How will you advertise your company and attract new customers? Use this section to show investors how you intend to promote and sell your product or service. Ensure you include all the advertising and sales methods used to introduce and demonstrate your wares to consumers. You should also emphasize your unique selling points (USPs) here if you have any.

    Related: How to Sell Your Story Through Your Pitch Deck

    7. The money

    Investors need to see sales, profits, and cash flow projections for at least three years. Use charts to display sales, estimated customer numbers, expenditure summaries, and profit projections rather than detailed, difficult-to-read spreadsheets.

    Get ready to talk about the primary expense drivers and the assumptions you used to arrive at your sales projections. Keep in mind that your financial forecasts should be logical and reasonable.

    8. Team

    Present the team you intend to use for your venture, along with their background, qualifications and anything special they bring to the table that would make them especially suitable for their roles. A solid team will enhance your chances of success and give your company much-needed credibility.

    Additional considerations

    Even though the elements above are crucial, a “competition” section is also recommended for a successful pitch deck in most cases. In this section, justify your place in the market and explain how your business can stand out from the rest of the options that will be there. Focus on the USPs that set your company apart from competitors.

    A “Investment and the Use of Funds” section can also be included. In this section, you should tell prospective backers how much money you need and why. Describe precisely how their investment will be used. Investors want to know where their money is going and how it will further your company’s mission.

    [ad_2]

    Alexander Galitsky

    Source link

  • Craft a Winning Pitch Deck That Wows Investors | Entrepreneur

    Craft a Winning Pitch Deck That Wows Investors | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    It takes both art and science to create a pitch deck that will result in funding. You must be able to express the idea for your company clearly and concisely while simultaneously appealing to the sensibilities of potential investors. The average time spent by investors studying decks is approximately three minutes and forty-four seconds. Therefore, it is pretty essential to create a fantastic first impression in a short amount of time.

    What investors want in a pitch deck

    Savvy investors look for certain types of information when evaluating pitch decks. Skipping over or only briefly glossing over these key details can make or break your ability to secure funding. A pitch deck gives potential investors a thorough grasp of your company. Seeking an emotional bond that goes beyond financial gain, they inquire about the goals and objectives of your organization. They require a concise synopsis of the product or service that highlights its special qualities and advantages. A thorough target customer profile that goes beyond demographics to understand their challenges and perspectives is also necessary for investors. They are looking for reliable total addressable market statistics as well as an accurate analysis of the competition environment. It is essential to have a well-considered go-to-market plan backed by specific traction measures. Investors want to see your business plan, financial forecasts, goals for fundraising and a profile of your competent staff. Effectively addressing these issues is essential to winning their support for long-term success.

    Related: 3 Key Things You Need to Know About Financing Your Business

    Tips for improving your pitch deck

    Carefully crafting your pitch deck slides and overall presentation can truly make or break your ability to secure startup funding. Keep these tips in mind:

    Know your audience

    Gaining a deep understanding of your target investors should be a top priority when creating your pitch deck. Avoid the rookie mistake of only including information you personally find interesting or want to share about your company. Be ruthlessly audience-centric in your approach.

    Do extensive research into your investors’ interests, motivations, goals and pain points. Conduct stakeholder interviews and analyze past investments to identify their preferences. Adapt your messaging, design choices and content to closely align with your investors’ worldview, not just your own.

    Speak directly to your investors’ needs and concerns. Put yourself in their shoes. Ask yourself, what excites them? What keeps them up at night? What past investments have they made and why? What types of language and messaging appeal to them?

    Emphasize design

    Design choices are critical for an impressive pitch deck. Avoid information overload and leave whitespace for a clean design by prioritizing simplicity and clarity. Begin with a visually appealing presentation template that provides polished and unified graphics that adhere to presentation best practices. Customize these templates to reflect your company’s identity. Use high-resolution, relevant visuals and photos, keep the text concise, and keep fonts, colors and styles consistent throughout. For a clean, professional appearance, use readable word sizes, high-contrast color schemes, and strategic alignments. Consider modest movements and transitions for increased impact, but avoid anything distracting or unprofessional.

    Make the ask clear

    Being direct and unambiguous in requesting funding is critical. Don’t make investors work to figure out what you actually want from them. Clearly state your need for cash and the amount of money you want to raise right away. Explain how you plan to use the money and how it will help the business grow by doing things like hiring engineers or adding more office space. Link the use of the fund to concrete goals. This will give investors a sense of time. Don’t make unrealistic predictions; instead, be honest about your plans and stress the return on investment (ROI) for investors. Avoid using hard-to-understand jargon, and keep your language simple. Also, use graphs and charts to make your ideas easier to understand. Lastly, add “contingency buffers” to your conservative projections to show that you can be flexible and build trust.

    Tell a compelling story

    Structure your content strategically to craft an emotive, memorable narrative. Hook investors’ attention immediately. Make them care about the problem you’re solving. Build intrigue around your company as the hero. Walk investors through your origin story, product innovation, traction and team. Sequence key information and visuals to build momentum, culminating in a call to action to invest.

    Take your audience on an informative yet entertaining journey, mixing logic and emotion. Outline a vision that inspires investors to join your mission.

    Related: 7 Questions Every Founder Should Ask Potential Investors

    Exude passion

    It’s crucial to convey genuine excitement and passion for your company’s purpose, product and growth potential. Investors invest in people and teams as much as they do in raw ideas. Let your authentic enthusiasm shine through. Share what drives your own personal commitment and investment.

    Be professional but also personable and relatable. Storytelling mixed with vulnerability builds an emotional connection that drives investors to take a chance on you. If you don’t show passion and confidence, why would they?

    Using a strategic, audience-centric approach, you can create a pitch deck that genuinely resonates with investors and secures the funding you need to take your startup to the next level. The work required will be well worth it.

    [ad_2]

    Pritom Das

    Source link

  • How to Think Like an Investor When Preparing Your Pitch Deck | Entrepreneur

    How to Think Like an Investor When Preparing Your Pitch Deck | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Startups are no longer confined to their local markets for fundraising. In the last decade, global venture capital (VC) investment in the startup ecosystem surged from $347 billion in 2010 across 31,623 deals to $671 billion in 2021 across 38,644 deals.

    Startups are looking for more than just cold monetary transactions to fuel their growth and global exposure.

    Today, successful startup fundraising boils down to one single most important thing: the pitch deck. It’s still the golden ticket for startups to secure both local and global VC funding. However, there are strategic differences between these two.

    Related: Stop Giving Boring Presentations — Follow These 6 Presentations Hacks to Captivate Your Audience

    The differences between the investment strategies of local and global VC firms

    Local VC firms usually invest close to home, often within their own country. This is usually because they know their local market well, including its trends and regulatory nuances. Moreover, they often invest based on personal connections and grasp local culture and business habits well. This helps them pick and support startups that fit well in their region.

    Local VC firms typically invest in newer startups but in well-known markets. They’re also a bit more careful with their investments, building trust and checking everything before investing.

    As their name suggests, global VC firms invest all over the world. They’re open to investing in startups from different countries, giving them a wider view and spreading their risks. Usually, they have a mix of investments in different areas and industries. And they’re especially interested in new tech and business ideas that can change industries.

    They mostly invest in startups that have already shown some success and focus on newer markets. They’re willing to take more risks and generally quicker in making decisions. While they, too, check everything before investing, they are more likely to invest if they feel there is an excellent opportunity.

    So, it’s fair to say there are some basic differences in their investment perspectives. That’s why your pitch deck must be more than just a presentation for securing global VC funding and exposure.

    Let’s dig deeper into the stats.

    1. Techcrunch analyzed that VC investors are spending 24% less time evaluating pitch decks in 2022 than in 2021.
    2. According to Infobrandz’s recent research paper, global startup funding astonishingly crashed down from $42 billion in 2021 to $25 billion in 2022, 40.5% less than in 2021, as investors were looking for more risk-averse investment opportunities.
    3. A recent industry research report published by AstelVentures highlights that you have to capture investors’ attention in the first 30 seconds or first 2 to 3 slides of your pitch deck presentation else you risk losing them for the rest of the presentation.

    Factually, it’s getting tougher to win global investment, and your pitch deck can turn it around.

    Related: Here’s What’s Brewing in the Minds of Startup Investors

    Proven pitch deck trends

    Let’s now study the trends and understand the investors’ perspective here. After all, investors see hundreds, if not thousands, of pitch decks each year. So, finding what sets the successful ones apart is crucial so you can learn what investors look for and optimize your pitch deck accordingly.

    First, visual content plays an increasingly crucial role in a pitch deck. This is because it helps to simplify complex information, making it easier for investors to understand your business model, market opportunity, and growth strategy. A well-designed pitch deck can make a lasting impression, helping you stand out in a sea of startups. Investors also want to see that you’ve identified a significant problem and have a unique solution that is different and better than what’s currently available, as this directly affects your sales. Moreover, investors are looking for businesses that can scale over time. They want to see a large and growing market for your product or service to ensure long-term returns.

    Most importantly, they want to know how you will make money. This is a key question investors want answered to see a clear and viable business model that shows potential for high returns. But one key factor is as important as the numbers and aesthetics — a factor often missed in pitches. Yes, I’m talking about the human factor!

    Investors invest in people as much as they invest in their business ideas. They want to see a passionate, capable team with the skills and experience to execute the business plan. After all, it’s often the grit and determination of the team that makes all the difference when a business faces challenges in a volatile market.

    How to craft a pitch deck in 2023

    Now that we understand what investors are looking for, how do we craft a pitch deck that ticks all the boxes?

    Here are the essential elements of a Pitch Deck:

    1. Storytelling and design — A successful pitch deck tells a compelling story about your business idea and team. It uses visual content to engage the audience, create an emotional connection, and make the business idea come alive. The pitch deck’s design should be professional, clean, and on-brand.
    2. Data and validation — Investors want proof. Include data that validates your market opportunity, business model, and growth projections. This could be in the form of market research, customer testimonials, or key performance indicators that are presented aesthetically.
    3. Call to action — End your pitch deck with a catchy and convincing call to action. What do you want investors to do next? Whether scheduling a follow-up meeting or investing in your startup, make sure it’s clear and compelling.

    Understanding the investor’s perspective is key to crafting a successful pitch deck, as the future of global fundraising is likely to be even more interconnected and competitive. Further, startups that can adapt to the evolving funding landscape, leverage technology, and align to the multi-cultural nature of the business will be well-positioned to stand out in the international arena.

    [ad_2]

    Vikas Agrawal

    Source link

  • Pitching to Journalists and Investors Is Like Playing a Game of Cards. Here’s How to Know Which Ones Will Help You Win. | Entrepreneur

    Pitching to Journalists and Investors Is Like Playing a Game of Cards. Here’s How to Know Which Ones Will Help You Win. | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Pitching your story to journalists and investors is similar to playing a game of cards. Although the outcome does depend on your strategy and experience, it is still largely determined by what’s in your hand. The thing is, to get the most out of the cards received, it is necessary to realize their value.

    So, let’s discuss what can become your trump cards and help you achieve your goals — and how to use them properly.

    Joker: $10+ funding round

    When pitching news to journalists, a large investment amount can become your joker. If a company has raised over $10 million, top media outlets will unlikely remain indifferent. Crunchbase data shows that US Series A funding has declined for five consecutive quarters. The situation with Series B funding is no better — it’s even harder to raise. The chances of startups reaching these stages have never been exceptionally high, but the decline in venture capital makes the task even more difficult.

    It also means that journalists are likely to pay attention to your project if you get past this milestone. News about companies raising millions of dollars and guest posts about how they managed to do it in such a volatile economy regularly appear in Techcrunch, Forbes, Venture Beat, Entrepreneur and other media outlets. So, it’s much easier for a startup that has attracted such funding to pitch its success story to editorial boards.

    Although the odds of winning the game with a joker increase dramatically, you’ll also need trumps for sustained success. Let’s talk about them now.

    Related: 5 Ways to Make Journalists Actually Want to Publish Your Brand’s Stories

    Industry reports with exclusive figures

    Unique market data may be the trump ace that will help you get into top-tier media outlets. A cybersecurity company specializing in preventing DDoS attacks can collect information on the number and types of such attacks in different regions, as well as the most attack-prone industries, and share the results with journalists. At the very least, this story may be published on specialized cybersecurity news websites. And at most, international publishers with a broader profile and audience, such as Bloomberg and CNBC, will express their interest.

    An important tip from my experience is to consider the specifics of a particular media outlet. If you want to pitch your report to a news agency that writes about the UAE, don’t try to focus on global trends in your story, as editors will be primarily interested in the local situation. And vice versa, if you aim to get into the global technology and business media, emphasize the international trends and how the industry is changing.

    A well-known investor

    With an investment of at least $1 million, this card can be your trump jack, queen or even king. A high-profile investor can attract media attention for two reasons. First, the name of a recognized venture fund or business angel can hook the reader and compel them to read the entire article. Second, it is a quality marker for journalists. If an experienced investor noticed a project, there is a higher chance that the startup makes a worthwhile product. Of course, this is not always the case — the story of Theranos shows otherwise. Still, the project gained worldwide fame even before the scandal.

    This trump card works exceptionally well if the investment made is the first of its kind for the fund — or, on the contrary, continues a series of funding rounds in a particular area. For example, in 2022, Techcrunch wrote about a16z investing in BreederDAO, a blockchain-based producer of digital assets for games and virtual worlds. Before this, a16z had supported several other decentralized solutions, which caught journalists’ attention. And in 2023, Reuters mentioned that Sequoia made its first investment into defense technology company Mach Industries.

    Having a reputable investor on board also becomes a trump when raising the next round. At the very least, they can help founders with valuable contacts in the industry. One study shows that 20% of venture deals come from referrals by other investors. Plus, the fact that someone experienced has invested in the company means that they have already conducted due diligence, evaluated the market, competitors, product and team —and concluded that the deal is worth the risk, which enhances the reputation of the project in the eyes of venture capitalists.

    Innovative technology

    If you have developed a unique solution and can prove it — congratulations, that’s another trump card. I’m pretty sure that you’ve seen articles with headlines like “This startup is looking to…” more than once in major media outlets. For instance, “This startup is zapping seawater to tackle climate change” in The Verge or “This startup wants to give farmers a closer look at crops-from space” in Wired. Often, subjects of these stories try to tackle pressing issues, such as staff shortages in the healthcare industry, food crisis or global warming, through technology. So, if you offer a truly innovative solution, especially if you are solving a critical social problem, the chance of seeing a feature about your startup in a top media outlet increases dramatically.

    However, often, more than this is needed. In our practice, there was a case where a top-tier journal was interested in a healthcare robotics project but agreed to publish a longread about it only when the team got first clients on board. In the case of The Verge story mentioned above, partnership with Boeing became one of the startup’s chips, which helped it to win the pitching game. If you don’t have that, the task can get more complicated.

    Plus, in some cases, pitching to investors may take more time and effort. Suppose we are talking about a complex, innovative high-tech product, for example, in biotechnology or alternative energy industries. In that case, many investors may be scared off by the long payback period and the hardships associated with hardware development.

    Still, if you are disrupting a niche and can provide supporting documents such as patents, a detailed description of the technology, test results, competitors and market analysis — you’ve added a trump card to your hand.

    Related: The 10 Things You Should Cover in Every Investment Pitch (Infographic)

    Successful entrepreneurial experience

    If your past projects have succeeded, it will be easier for you to attract your target audience’s attention. And if you have already created a market leader, count that as your trump king or ace, both for the media outlets and investors.

    The most straightforward example confirming both theses is Adam Neumann, founder of WeWork, who raised $350 million from a16z for his new real estate startup, Flow. Major media outlets wrote about it because of the huge investment amount, the well-known investor and the fact that it was Neumann, the founder of a coworking giant. His controversial past didn’t scare off a16z. General partner Chris Dixon said of Adam, “He’s one of the few founders — I mean, he’s one of the only people in the world who has built a real estate brand name.”

    If the previous project was successful but did not reach such heights as WeWork, such a trump card will unlikely change the situation without others and may not help you get into the top-tier media. But it is indispensable when pitching to investors because, at the early stage, they look at the team first. With an experienced founder in front of them, they will be more interested in considering the project. According to PitchBook, the fundraising process is easier for serial entrepreneurs. Moreover, they get a deal size and preliminary valuation 2-4 times higher than their less experienced colleagues.

    News tied to current events

    Journalists want their stories to be relevant. Tying your pitch to current events greatly increases your chances of being mentioned. Since no one can constantly generate breakthrough news, it’s a great way to stay in the spotlight. During the pandemic, media outlets featured compilations of projects fighting Covid-19, stories about companies that had to change strategies to stay afloat, and guest posts about how different technologies can help to stop coronavirus from spreading. Of course, you can’t predict how things will turn out and when your expertise and product will be most relevant to journalists. Still, keeping a finger on the pulse and seizing the right moment can become your trump card.

    As your company grows, you will acquire more and more trumps. The best part is that they will stay with you for future battles, unlike in a real game of cards. For example, the “Attracted substantial funding from a recognized investor” card will definitely help you in the next round of pitching. The more trumps you have, the stronger the player you are — the easier it is to win even the most challenging games: getting top-tier media coverage and finding new investors through publications.

    Related: 6 Tips on Grabbing Major Media Coverage for Your Business

    [ad_2]

    Evgeniya Zaslavskaya

    Source link

  • To Secure VC Funding, Your Pitch Deck Must Include These 5 Things | Entrepreneur

    To Secure VC Funding, Your Pitch Deck Must Include These 5 Things | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Venture capitalists are always on the lookout for the next big thing, and most of them review hundreds of decks monthly. Seasoned VCs need 30 seconds to decide whether the pitch deck is worthy and whether they should proceed and arrange a meeting with the founder.

    If you’re an entrepreneur looking for VC funding, you need to understand what investors are looking for in a company before they decide to invest. Here are five things that should be in your deck, without which Leta Capital won’t invest in your company.

    Related: Seeking Funding? Here Are Five Tips for Creating an Effective Pitch Deck

    1. A clear and compelling problem statement in conjunction with the timing

    First, you sell the problem, not the decision. The market need, not the product. VCs are looking for companies that solve real problems for real people. Your deck should clearly articulate the current state your company is changing, why it matters and then how you do it. The problem statement should be clear, concise and compelling. It should show that you’ve done your research and understand your target market. For example, Airbnb’s problem statement was: “People need affordable, safe, and unique accommodations when they travel.” This statement makes clear that Airbnb is solving a real problem in the travel industry. Moreover, people travel as much as ever before, so the timing was perfect.

    2. Realistic projections and a scalable model

    There is nothing worse than unrealistic and unprovable projections. If you claim that today you have $10k MRR and two customers, but next year you will make millions, and in 5 years, you will have an IPO, no one will believe you. You just don’t have enough data to convince people! Keep in mind that VCs want to invest in companies that can scale and generate significant returns on their investment. Your deck should show that you have a clear and scalable business model that can generate revenue and profit over time. That is why your traction, your business model and your projections should match.

    3. Full focus and commitment from the founders

    VCs want to invest in companies that have a strong team with a track record of success. But even more than that, VCs want to see the absolute commitment of the founders if we are talking about seed/series A stages when entrepreneurs need to work really hard and invest all the energy and time to boost their startup. Of course, the deck should show that you have a team with the skills and experience necessary to execute on your business plan. The red flag here is if you say that you need to raise money to hire a technical co-founder or lead engineer. In that case, VCs will think that you can’t attract and convince technical talent. You should figure out how to convince people to join you on your own — otherwise, how will you create a game-changing company?

    Related: Five Best Pitch Decks of All Time

    4. Competitive advantage and a POD among competitors

    No competition? No market. You should admit that if the problem exists, someone is already solving it somehow. Don’t belittle competitors, and don’t say they are stupid (especially corporations or startups with a proven track record or huge funding). However, VCs want to invest in companies that have a competitive advantage over their competitors.

    Your deck should show that you have a unique product or service that sets you apart from your competition. For example, Tesla disrupted the automotive industry by offering electric vehicles that were more environmentally friendly and had better performance than traditional gas-powered cars. Their competitive advantage and POD were their focus on innovation, sustainability and design.

    5. A clear path to exit

    VCs want to invest in companies that have a clear path to exit. Of course, investors don’t want to fund founders who haven’t built the company already want to sell it, but still, your deck should show that you have a plan for how investors can eventually make a return on their investment. This is an art, but nobody promised this would be easy!

    If you’re looking to secure VC funding, your deck needs to show that you have chosen the perfect timing to solve a real problem, that you have a scalable business model executed by a strong and dedicated team, you have a competitive advantage, and your company will give an investor the desired returns after 5-10 years. By including these five things in your deck, you can increase your chances of securing the funding you need to take your company to the next level.

    Related: How a VC Wants to Be Pitched

    [ad_2]

    Alexander Chachava

    Source link

  • Why Investors With an Entrepreneurial Past are Vital to Startup Success | Entrepreneur

    Why Investors With an Entrepreneurial Past are Vital to Startup Success | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    In this article, I would like to focus on one significant trait that some investors possess — an entrepreneurial background that enables them to establish strong connections with startups and better understand the ‘pains’ and challenges new founders face.

    Based on my personal experience as an entrepreneur I would like to highlight key aspects of communication with startups and why your entrepreneurial past makes you a little bit different from others.

    Related: 6 Steps to Finding the Right Investors for Your Business

    Speaking the same entrepreneurial language

    When communicating with founders, having an entrepreneurial background is extremely helpful. Founders can sense it, even from how questions are formulated, and they often highlight they have never been asked such questions before — questions are tailored with a deep understanding of the subject.

    And it’s not just about technology-related topics, but specifically business management, such as sales funnels, marketing strategies, product market fit and customer development. Besides managing businesses, having personal experience in creating acceleration programs and all the leading methodologies of Silicon Valley, which we have integrated into accelerators for many years to make them more effective, can enhance communication between investors and founders.

    With my experience of establishing 42 accelerators and collaborating with 1500 alumni startups, I have encountered familiar patterns, challenges and intricate situations when working with founders. We have found solutions together with startups in the past, and now I bring that experience to my current communication with founders.

    Entrepreneurs then — investors now

    Investors with entrepreneurial backgrounds bring valuable insights and expertise to the table. They have firsthand experience navigating the challenges and uncertainties of building a business, which allows them better to understand the struggles and aspirations of startup founders. Here are some great examples from the venture world.

    Mark Suster is a well-known voice in the investing world, having written extensively about investing in startups and building them on his website, Both Sides of the Table. He possesses the unique ability to discuss both sides of the table due to his experience as a two-time entrepreneur, having sold a company to a French firm and another to Salesforce. Currently, he serves as a partner at Upfront Ventures in Southern California (SoCal).

    Marc Andreesen, viewed as a pioneer in the tech space, founded Netscape, Opsware, Ning, and now his investment firm, Andreessen Horowitz. He’s an expert in tech trends and a frequent speaker in the angel investing space.

    Reid Hoffman is one of the most sought-after opinion makers in Silicon Valley. He is widely recognized for founding the largest business social network in the world, LinkedIn. Moreover, he has successfully translated his entrepreneurial acumen into profitable investments, with key stakes in companies like Facebook, Airbnb, and PayPal.

    Related: 5 Questions to Prepare for Ahead of Your Meeting With Investors

    Benefiting from an entrepreneurial past: from coaching to strategic planning

    An investor with entrepreneurial skills can provide valuable support and guidance to a startup in several ways. Here are some ways in which such an investor can help:

    • Fundraising strategy. The primary role of an investor is to provide funding to the startup and help them with fundraising strategy going forward. This financial support is crucial for the startup to develop its products or services, hire talented employees and scale its operations. With their entrepreneurial experience, the investor can assess the startup’s financial needs and give some strategic advice on funding allocation. Additionally, can guide the founder towards better fundraising strategy and preparation for investor meetings.
    • Strategic planning. An investor with entrepreneurial skills can help the startup create a solid business plan and set strategic goals. They can provide insights and expertise gained from their own entrepreneurial background, helping the startup identify potential challenges and opportunities. Together with the startup’s founders, they can develop a roadmap for growth and devise strategies to overcome possible challenges.
    • Shared perspective. I think this is one of the most important ways of communication, and here is why. An investor with an entrepreneurial background can better understand startups’ challenges and opportunities. They have likely experienced similar struggles, such as fundraising, market-entry, scaling and operational issues. This shared perspective helps establish rapport and empathy with startup founders, fostering better communication and mutual understanding.
    • Mentoring and coaching. Startups often appreciate investors who can go beyond providing capital and act as mentors or coaches. An investor with an entrepreneurial background is well-suited to fulfill this role. They can offer guidance on overcoming challenges, making critical business decisions and navigating the ups and downs of entrepreneurship. Their ability to draw upon personal experiences can be particularly impactful in helping startups succeed.

    I love seeing founders passionate about their startups, and our fund sometimes goes the extra mile to advise startups, even if they didn’t receive investments from us. It’s important to remember that when rejecting a startup, there is always the possibility that it may return in the future after making significant improvements in key metrics. Therefore, it is in our best interest to provide additional advice on what steps they need to take to attract funding.

    I receive requests from founders for personal consultations quite often. We were thinking about how to turn this demand into something beneficial for startups and society and came up with a very good solution. We decided to combine venture and charity by launching a project with the Podari.Life charity fund called “30 min/lunch with VC to save lives.”

    Relationship building

    Investors with an entrepreneurial past can leverage their extensive network and connections to open doors, make introductions and facilitate strategic partnerships for the startups they work with. This network can be instrumental in helping startups access resources, industry expertise and potential customers.

    For example, the CEO of one of our portfolio companies, PicUp, recently embarked on his first visit to the USA. He took the initiative to go on an extensive tour, visiting key states and connecting with potential partners and investors. I understand firsthand how challenging it can be to establish new connections in a foreign country, especially in the USA and particularly in Silicon Valley, which has no analogs in the world. With this in mind, we decided to assist by connecting the company with investors and key players in the Silicon Valley innovation ecosystem in advance.

    Related: The Things Successful Leaders Do and Don’t Do to Build Relationships

    What matters the most

    In summary, it is not solely the investors’ entrepreneurial experience that founders find appealing. Rather, their experience in different roles inside a business allows investors to have a wider view and help early founders avoid common mistakes while building the next big thing. After all, venture investment is a long-term relationship, and you want to build partner-like relationships with people you will most likely work with for the next 8-10 years until your exit.

    [ad_2]

    Zamir Shukho

    Source link

  • How Founders Can Demonstrate their Founder-Market Fit to Investors | Entrepreneur

    How Founders Can Demonstrate their Founder-Market Fit to Investors | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    In the early stages, startups often lack impressive numbers to showcase their potential. That’s why investors primarily examine the co-founding team to assess how likely they are to build a thriving company.

    In simpler terms, investors are looking for something called founder-market fit when the founders’ skills, experience, and personal qualities align with what the market needs.

    But how can a founder determine if they have this so-called founder-market fit?

    A background check

    Deep industry expertise can indicate a strong match between the founders and their target market. The ability to execute ideas is vital for early-stage founders, and the more bulletproof they are in their domain, the higher the chance they’ll be able to do it.

    It’s also about knowing what to disrupt and how, because, at its core, a founder-market fit means that the person starting the company has personally experienced the problem they’re now trying to solve.

    In some cases, outsiders have disrupted industries they knew little about, but generally, founders have a much better chance of succeeding if they have a sense of how a specific market works. About 35% of startups fail because the founding team doesn’t know enough about the market and what customers actually need.

    The best way to know an entrepreneur has a founder-market fit is to look at their education, previous employment, and projects. How long have the founders been active in this industry? How well do they know its problems? How badly do they want to change the status quo?

    There are many examples of this: Airbnb’s founders hosted people in their apartments before building a marketplace for homestays; Slack began as an internal communication tool for a company owned by one of the founders — he knew what app his team needed.

    Health tech startup Theranos is a well-known case of the opposite when a lack of industry knowledge — among other things — led to a startup’s failure. Investors were swayed by the founder’s grand vision: they collectively invested $1.3 billion. Unfortunately, they overlooked the significance of the founder’s background.

    The founder, Elizabeth Holmes, promised to revolutionize health care while having only two semesters of chemical engineering classes at Stanford.

    Related: 6 Lessons Entrepreneurs Can Learn From the Fall of Theranos

    Synergy among co-founders

    When a founder presents me with a startup that heavily relies on sales but struggles to articulate their thoughts, it raises a red flag. In such situations, investors should carefully assess the other co-founders in the team, seeking a partner who brings the required expertise — in this example, in sales.

    Founder of Awesomic, a platform that matches web design talents with businesses, Roman Sevast has a background in software development. He takes full responsibility for Awesomic’s technical aspects and product development, while another founder, Stacy Pavlyshyna, is a former digital marketer who handles operations, communications and marketing.

    This serves as a good illustration of where both co-founders bring their domain expertise to the table, and their collaboration enables them to achieve a solid founder-market fit.

    A prominent global example of a synergistic partnership is the relationship between Steve Wozniak and Steve Jobs.

    Related: 5 Expert Tips on How to Choose a Co-Founder for Your New Business

    How to tell investors about founder-market fit

    To increase the likelihood of securing funding, early-stage founders should make sure they communicate their founder-market fit to investors. My several tips:

    • Share specific examples of the co-founders’ industry challenges and how they resolved them.
    • Emphasize accomplishments relevant to the target market, such as previous startup ventures, industry accolades, significant milestones, or partnerships.
    • Present a compelling narrative about a co-founder that showcases their in-depth industry knowledge. Instead of stating “5 years of IT experience,” highlight achievements by saying, “developed a product used by 300,000 clients”.
    • Demonstrate a scalable business model that aligns with market needs and show how exactly it aligns.

    Problem-solving experience

    This does not suggest that successful startups can only emerge from founders with prior experience. Quite the opposite, according to Sebastian Mallaby’s book “The Power Law,” groundbreaking ideas often originate from individuals who are outsiders to the industry.

    These outsiders, however, must possess certain character traits that enable them to achieve a founder-market fit. I’d like to highlight perseverance and curiosity.

    Outsiders should thoroughly study the market to understand their potential customers, launch effective marketing campaigns, and ultimately develop a product that people will find valuable. Curiosity serves as the driving force behind acquiring the necessary knowledge.

    Perseverance is crucial because the market landscape constantly changes, and founders continuously overcome new challenges. We seek to invest in founders who are prepared to adapt to evolving market conditions, meet customer demands and embrace emerging trends.

    Founders never know which particular problems they will face when starting a business. But if they previously solved problems in a chosen market or if they show they have grit, VCs take it as a good sign.

    Related: Beyond the Basics: 5 Surprising Qualities Investors Seek in a Winning Team

    [ad_2]

    Vital Laptenok

    Source link

  • A Guide to Visualizing Data in Your Pitch Deck | Entrepreneur

    A Guide to Visualizing Data in Your Pitch Deck | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    As an entrepreneur, a pitch deck is your most powerful tool to impress investors and raise investments from them. However, creating the perfect pitch deck can be a real challenge, and only 1% of pitch decks succeed in acquiring funds! So, how do you make things work here?

    To make a convincing impact, your pitch decks should tell an engaging story that covers the customers’ problems, the solution you provide, market conditions, your financials, your traction and predictions and all other relevant details. At the same time, the presentation should also be concise and persuasive. How do you achieve this balance?

    One of the best ways to make such a concise yet convincing pitch deck is by using data visualization. After all, visual content constitutes 90% of the information transmitted to the brain, and we process visuals 60,000 times quicker than text! So, this article will focus on the art of visualizing data in your investment deck, helping you make complex information more engaging, accessible and persuasive for investors. Let’s begin!

    Importance of data visualization in pitch decks

    Data visualization plays a crucial role in pitch decks, as it allows you to present complex information clearly, concisely and visually appealingly. A well-crafted pitch deck should convey your startup’s story and showcase your data in a way that quickly and effectively communicates your business’s potential.

    Remember that investors review numerous pitch decks, and the average investor spends only 3 minutes and 44 seconds on a pitch deck, so using data visualization is essential for creating a memorable, concise and convincing pitch deck is essential.

    Data visualization will drive the success of your pitch decks at all points, from Seed to Series A! So, you must understand and follow the principles of visualizing data effectively at all stages. Here are some pointers to help you do this easily.

    Related: 4 Strategies for Pitching Company Stories That Rise Above the Noise

    Choosing the tools: Selecting the right charts and graphs

    Choosing the right charts and graphs for your data is vital for an effective investor deck. Consider your audience, the type of data you are presenting and the message you want to convey to choose the right visualization tool.

    I identified 11 common types of charts, graphs and tables that are best for visualizing data, both non-financial and financial data visuals. Let’s check out these graphs and their applications to help you choose the right one-

    Non-Financial Charts and Graphs

    • Line Graph — Shows the trends over defined periods.
    • Pie Chart — Displays distribution of a single data point among categories.
    • Proportional Area or Comparison Chart — Represents market size and the portion a company hopes to capture.
    • Bar Charts — Compares different categories using horizontal or vertical bars.
    • Timeline or Roadmap — Demonstrates the company’s plans and milestones.
    • Competitor Matrix/Comparison — Compares a company’s features, strengths and weaknesses against competitors.

    Financial Charts and Graphs

    • Stacked Bar Graph — Demonstrates growth and distribution between different segments.
    • Bar Graph — Shows growth or trends in financial data.
    • Financial Table Snapshot — Provides a high-level summary of financial projections.
    • Line Graph — Displays trends in financial data, such as revenue or profit.
    • Stacked Area Line Chart — Shows different segment slices that make up overall financial figures.

    Remember that you don’t have to stick to one type of visualization tool. Use multiple charts and graphs in your investment deck based on the slide’s content and the aspects being covered.

    Related: 5 Tips for Taking Your Pitch Deck From Seed to Series A

    Adding the visuals: Incorporating data visuals into your pitch deck

    To create a cohesive pitch deck, ensure that data visuals complement your narrative and follow a consistent design across the presentation. Each visual should support the main points of the respective slide and must be strategically placed to maintain the flow of your investor presentation or deck.

    Moreover, you must avoid overwhelming investors with data by including only the most relevant and impactful visuals. Some of the most compelling Data Points to Visualize in a Pitch Deck are:

    • 1, 3, and 5-year revenue
    • 1, 3, and 5-year profitability
    • Customer churn rate
    • Customer signups
    • Customer acquisition costs
    • Break-even point
    • MRR (Monthly Recurring Revenue) Growth
    • CAGR (Compound Annual Growth Rate)
    • Sales

    Enhancing the pitch: Balancing aesthetics and clarity

    While creating visually appealing data visuals is important, clarity should not be compromised. Your pitch deck should balance aesthetics and clarity, using colors, fonts and design elements that enhance the overall message without distracting from the data. Here are key points to consider when designing your pitch deck:

    • Select appropriate visuals — Choose the most relevant visuals that enhance your message while you make a pitch deck. This could include graphs, tables and infographics.
    • Use videos where appropriate — Don’t hesitate to include explainer videos to explain complicated concepts, as people typically prefer videos to understand new information. After all, videos make up nearly 82% of internet traffic!
    • Ensure clarity — Opt for simple, easy-to-understand visuals that are relevant to your data and message. Also, make sure that the visuals are correctly sized and labeled to enhance readability.
    • Prioritize readability — Ensure that text is easy to read by using clear fonts and appropriate font sizes. Avoid overcrowding the slides, and don’t cross 75 words per slide.
    • Use consistent design elements — Apply a uniform design throughout your pitch deck using consistent colors, fonts and style. This consistency enhances the visual appeal and makes your presentation look polished and professional.
    • Leverage whitespace — Whitespace, or empty space on your slides, can help guide the viewer’s attention and prevent clutter. Use whitespace strategically to improve readability and emphasize key points.
    • Color scheme — Use a color scheme that complements your branding and improves readability. Avoid using too many colors or overly bright hues that can be distracting or difficult to read.
    • Test and refine — Gather feedback from others to ensure your pitch deck balances aesthetics, clarity and informative value. Iterate and refine the design and content based on the feedback you receive.

    By considering these points, you can make a pitch deck that is visually appealing while effectively communicating your message to potential investors.

    A successful example of data visualization in an investor deck is the one used by Uber in their early funding rounds. They used simple yet compelling visuals and points to demonstrate their market potential, operating areas, services and growth trajectory. The perfect visual tool selection, clarity and simplicity allowed investors to quickly grasp the startup’s innovative idea and potential, leading to successful funding rounds.

    Related: Successful Fundraising Begins With a Stellar Pitch Deck

    Conclusion

    Incorporating effective data visualization in your pitch deck can make a significant difference in capturing investor interest. By selecting the right charts and graphs, incorporating visuals strategically and balancing aesthetics with clarity, you can create a compelling and persuasive pitch deck that stands out among the competition. If you find this complicated, you can also go for a pitch deck agency that specializes in making pitches with effective data visualizations. All the best!

    [ad_2]

    Vikas Agrawal

    Source link

  • How to Attract Investors During Tough Times | Entrepreneur

    How to Attract Investors During Tough Times | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Whether the economy is doing well or in a phase of uncertainty, the fundamentals of building an investable start-up remain the same. You don’t need to be a mind reader to determine what investors want to know.

    Here are five tips to help convince potential investors that your solution solves a big problem for a large market and that your team has the talent, creativity and character to deliver on your business plan in favorable or uncertain market conditions.

    1. Be clear about the problem

    It is more important than ever to be clear with investors about the problem your company solves. The number one thing that matters today is how quickly and clearly an entrepreneur can articulate the problem that her startup solves. Why? Because investors know that when a startup fails, it is usually because there is insufficient demand for the product. What specifically about your solution will make customers change what they are currently doing and pay for your new product?

    Related: 5 Things to Do Now to Propel Your Business in 2023

    2. Know your audience

    Determine beyond any doubt that you are working in a space that an investor cares about and that your vision and goals align with theirs. Investors in technology-driven high-growth companies are looking for hyper-growth in specific industries, for example, advanced materials, information technology or biotechnology — large markets with tremendous opportunities. If your vision isn’t stoked by the risk and endurance it takes to build and scale those businesses, high-growth entrepreneurship is likely not the right path for you.

    3. Provide the evidence

    Nothing beats demonstrating your first-hand understanding of your market. Entrepreneurs who have lived with a problem in previous roles or their personal lives uniquely understand the impact and the potential gains of their solution. Suppose that’s your backstory, great. If not, describing what you learned and how you pivoted from surveys, interviews and by listening to customers builds credibility—especially when some of those customers are willing to become early adopters and go through multiple iterations to prototype your technology and prove your business model. Convincing customers helps convince investors.

    Investors expect entrepreneurs to be enthusiastic. When that passion is combined with an understanding of customers’ needs and of the impacts that your startup solving their problems can have on their bottom line, investors pay attention. Focusing on your customer’s pain points and the payback of your solution encourages investors to focus on you.

    Related: A Good Story Isn’t Enough to Get Your Startup Funded. Here’s What Else
    You Need

    4. Understand the economics

    What has to happen for your new business to achieve 20, 50 or 100% year-over-year growth? Investors will listen when you demonstrate your clear understanding of the business unit economics for your company. Show how you can gain enough traction with the first feature set and early adopters to prove the market and technical viability of your solution and market. Sometimes entrepreneurs are so focused on a specific solution that they become less open to a solution that could be better. Show that you know how to listen for signals and to narrow up or pivot if that’s what it takes to scale.

    While there may be multiple longer-term markets and product enhancements, don’t dilute your team’s focus. Can you build the solution? Is there a gap in the solution? Can you plug in? Focus on business development, not product innovation. Prove scalability in the first market and generate enough revenue to secure follow-on funding to support additional growth.

    Related: 5 Things Investors Want to Know Before Signing a Check

    5. Show your flexible mindset

    Investors want to collaborate with high-integrity, coachable entrepreneurs. Every interaction with you influences whether you are someone investors will trust and want to invest in. Balance the tightrope between ego and confidence. Be willing to acknowledge what you know and what you don’t. It’s rare to find an entrepreneur who hasn’t made mistakes.

    Eventually, almost every startup will need a flexible mindset to pivot on some aspect of their business plan. Seek trusted advice, then follow your instincts. Successful entrepreneurship always comes back to the basics — market validation, product/market fit and staying focused on the business plan.

    Trustworthy, confident and coachable entrepreneurs don’t allow an uncertain economy to distract them from executing their business plan.

    [ad_2]

    Kristy Campbell

    Source link

  • 10 Presentation Trends to Help Your Next Pitch | Entrepreneur

    10 Presentation Trends to Help Your Next Pitch | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Presentations have become a critical part of professional and educational settings. Whether you are pitching a new project, delivering a report or teaching a lesson, your presentation design can make or break your message. So, you must hit the nail on the head with every presentation you make.

    As a result, the demand for visually engaging and convincing presentations is on the rise. In fact, a whopping 91% of presenters feel more confident when presenting with a well-designed slide deck. However, effective presentation design is not static. It evolves with changing preferences, technologies, and expectations of the audience.

    To keep your presentations fresh and engaging, you must stay on top of the latest trends and best practices in presentation design. So, this blog will update you on the latest presentation design trends to help you stay at the frontier of the art of presentation design. Let’s begin!

    Related: 5 Sales Presentation Tips From a Self-Made Millionaire

    Top 10 modern presentation design trends in 2023

    Replace boring traditional presentations with modern presentations that grip the audience by incorporating these top 10 presentation design trends in 2023.

    1. Use of augmented reality (AR). Enhance your presentation by overlaying digital information onto the physical environment through augmented reality. This creates a more interactive and realistic experience for your audience, making your presentation more memorable.
    2. Flowing shapes. Incorporate organic and irregular shapes into your presentation design to create dynamic and attractive visuals that capture attention and maintain focus. These flowing shapes add an element of movement and energy to your slides, keeping your audience engaged. Here is an example of flowing shapes while implementing dark modes.
    3. Application of 3D design. Use realistic and immersive graphics to create depth and dimension by adding 3D elements that enhance your content. Ensure that 3D graphics are high-quality but do not slow down your presentation or distract the audience.
    4. Increasing popularity of dark mode. Utilize dark backgrounds and light text to reduce eye strain and make your content stand out. This design feature looks modern and enhances readability, ensuring your message gets across effectively.
    5. Growing use of interactive VR technology. Take realism and engagement to the next level by creating VR 3D experiences that customers can interact with using VR headsets and controllers. These are highly engrossing presentations that are tricky to master but unparalleled in effectiveness.
    6. Application of Artificial Intelligence (AI). Employ algorithms and machine learning to automate and optimize various aspects of presentation design, such as content creation, data analysis, speech recognition and personalization. This allows you to focus on delivering an impactful message while AI takes care of the design details.
    7. Increased use of video content and mixed media. Video content is highly popular, making more than 82% of web traffic, and you can leverage them in your presentations as well! You must also combine audio, visuals, animations, and text to deliver a rich, immersive experience that caters to different learning styles.
    8. Advanced data visualization. Transform complex data into simple and clear visual forms using graphs, infographics, animations, and explainer videos to support your arguments and reveal insights. By presenting data visually appealingly, you can make your presentation more persuasive and easier for your audience to understand.
    9. Increasing use of short videos, animations and GIFs. Utilize animated images or clips to convey information or emotion, but keep animations short and relevant to maintain audience engagement. Also, remember to optimize animation and GIF file sizes to prevent slow loading times. Here is an example.
    10. Holographic presentations. Holographic presentations are a way of using multimedia content (such as images, videos, charts, etc.) to communicate with your audience through an engaging, three-dimensional medium. They can be created by using cameras that capture the speaker from different angles and project them onto a special screen or platform. They can also include special effects and sounds to enhance the experience.

    Related: 5 Tips for Giving a Killer Sales Presentation

    Tips for creating and delivering a killer presentation

    Ready to incorporate the latest trends into your presentations? Follow these pro presentation tips to make the most of your first modern presentation-

    • Do proper homework on the subject. Research your topic thoroughly to ensure you can present accurate information and answer questions confidently.
    • Start with a hook. Include an interesting or surprising fact, statistic, or anecdote that captures your audience’s attention and encourages them to want to learn more.
    • Tell an engaging story. Narrate a story that relates to your topic, making it more relatable and memorable for your audience.
    • Use visual elements. Incorporate high-quality images, graphics, and videos to support your message and maintain audience interest. Presentations having visuals are 43% more persuasive than those lacking them.
    • Add a touch of humor. Lighten the mood with appropriate jokes or funny anecdotes to make your presentation more enjoyable and memorable.
    • Have a parking lot for questions. Set aside time at the end of your presentation for questions, ensuring you address any audience inquiries or concerns.
    • Keep it short and simple. Limit your presentation to the essential information and avoid lengthy explanations. The optimal length of a presentation is between 15 and 20 minutes.
    • Incorporate Data when required. Use data, statistics, or charts to back up your points and add credibility to your presentation.
    • Practice your delivery. Rehearse your presentation multiple times to ensure a smooth and professional delivery.
    • Maintain eye contact and interact with the audience. Engage with your audience by making eye contact, demonstrating confidence and fostering a connection.
    • Control your pacing. Speak slowly and clearly, pausing when appropriate to allow your audience time to absorb the information.
    • End with a strong closing. Summarize your main points and conclude your presentation with a memorable statement or call to action.

    Related: Plan the Perfect Presentation for Your Audience With These 5 Tips

    Implementing these presentation design trends and tips will help you create visually appealing and compelling presentations that stand out and capture your audience’s attention while communicating your message.

    To get started, you can use any reputed presentation design tool or go with a presentation design agency and leverage their expertise and experience to ensure the best standards. Whichever option you choose, always remember to stay up to date with the latest design trends and continually refine your presentation skills to stand out and make a lasting impression.

    [ad_2]

    Vikas Agrawal

    Source link

  • 3 Stakeholder Relationships Your Business Needs to Nurture | Entrepreneur

    3 Stakeholder Relationships Your Business Needs to Nurture | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    A startup’s brand — both the company and the founders’ brands — plays an important role in shaping how investors perceive their business and, ultimately, how much they are willing to invest. Building a strong brand for the startup and founder, can help differentiate a company, emphasize its unique benefits and increase its perceived value, leading to a higher valuation in the eyes of investors

    A company’s brand is composed of various persistent actions done online and offline. One component that affects a startup’s brand lies in their relationships. Let’s shed light on this component and present the three types of relationships any startup founder should focus on to increase their growth, brand value and, ultimately, their valuation.

    Related: From Customers to Investors to Employees, Here’s How to Connect With Every Company Stakeholder

    1. Board members and advisers

    Having board members or advisers who are industry experts can provide significant value to a startup’s brand and valuation. Those with the right industry knowledge, connections and reputation can help a startup navigate the competitive landscape, identify new opportunities and open doors to potential customers and investors. In fact, a KPMG study called the “2019 Global CEO Outlook” found that board reputation is the second most important factor considered by investors when evaluating a company. While this may not come as a surprise to many, the truth is that finding and harnessing the right board members or mentors is not easy, as they are usually sought-after people.

    To establish relationships with industry experts for potential board members, it is important to first plan out the ideal composition of expertise, knowledge, connections and reputation that your board needs. For example, one board member could be highly connected within your industry, while another may have a Ph.D. in your area, and another may have advised the President of the United States. Additionally, you may want to define diversity goals for your board, such as having an equal number of women and men. Once you have established the necessary structure and profiles, start brainstorming potential candidates for your board.

    The best way to reach out to such individuals is through warm recommendations and referrals from existing board members, investors, or other industry contacts. Startup founders can also attend industry events, participate in online forums and groups and join industry associations where the right profiles of board members may be present.

    One of my career hacks when it comes to finding board members is to approach the “formers” in your industry, such as “former founder of a Fortune 500 company,” “former dean of Harvard Business School” and so on. These former seniors often have a wealth of knowledge, connections, and reputation, and are looking for their next exciting endeavor, and to be a part of the new generation’s work. If you approach them with passion and resonate with their values, they could be your best-kept secret to help drive your company toward its goals!

    Related: Make Sure Your Business Aligns With Your Stakeholders’ Worldview…And Your Own

    2. Industry investors, founders and leaders

    Establishing a robust network of industry investors, founders and leaders can significantly benefit a startup’s growth and brand and valuation. Such connections can provide access to capital, mentorship and strategic advice, which can prove invaluable. It is essential to build relationships based on trust, mutual interests and authentic friendships. When founders are well-connected and valued in their industry, within their network they can support and recommend one another, which ultimately strengthens their personal brand. Additionally, a national research study by Brand Builders Group reveals that 82% of all Americans agree that companies are more influential if their executives have a personal brand that they know and follow.

    To build relationships with industry investors, founders and leaders, startup founders must be visible both online and offline, even if they prefer to be in the office managing the company. They can attend networking events, participate in accelerator programs, and join relevant online communities. By connecting with industry leaders on social media, and posting engaging content, initiating meetups with other industry leaders or having one-on-one meetings, they can gradually build authentic relationships. The key is to be proactive, authentic and intentional in building these relationships.

    3. Co-founders and team

    Investors focus on the relationship between co-founders specifically, and the company culture when evaluating a startup’s potential. The ability of the startup’s leadership to work together and foster a positive culture is crucial to executing on plans, navigating challenges and driving the company forward. In turn, it impacts the startups’ brand and valuation. Additionally, a distinct workplace culture is believed to be important for business success by 94% of executives and 88% of employees, according to a study on partnerships and relationships in the workplace by Deloitte. Ultimately, investors want to see that the startup’s leadership and team have the ability to work together and create a culture that supports innovation, growth and success.

    To establish good relationships among co-founders, it is recommended to foster open communication and collaboration to build a positive and productive work environment. Startup founders can create a strong company culture by defining their values and mission and promoting an open culture that supports individual growth, offering employee benefits, and encouraging work-life balance. They can also organize team-building events and activities to promote team cohesion and foster a positive work environment, among many other ways.

    Related: 3 Social-Intelligence Methods for Building Strong Stakeholder Relationships

    In conclusion, forming the right relationships with industry experts, investors, founders and leaders, as well as prioritizing the management team and company culture, can significantly impact a startup’s growth, success, brand and valuation. It is advised for startup founders to focus on building a strong personal brand by following the above actionable tips and building strong relationships, among other brand-building components. This can increase their success factors and perceived value and, ultimately, support attracting the funding they need to grow their startup.

    [ad_2]

    Lirone Glikman

    Source link

  • What I Learned By Raising My Pre-Seed Funding in the Downturn | Entrepreneur

    What I Learned By Raising My Pre-Seed Funding in the Downturn | Entrepreneur

    [ad_1]

    Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

    Heading into my first pitch for pre-seed funding, I was less nervous than you might expect. I had concerns, of course: was I prepared for the questions I’d be asked? Had I focused on the right selling points? But, as a former corporate consultant, I was used to presenting to executives in high-pressure situations and was confident in my ability to disarm and build rapport within a room.

    Going into that first pitch, I felt lucky to have the opportunity to talk to credible investors, particularly at a time when funding was more scarce. Yet now, with our pre-seed round freshly closed, I’ve come to realize there’s an alternative mindset to embrace. As I reflect on my experience of raising during a downturn, here are three lessons I wish I’d known sooner.

    Related: How to Get Funding: The Dos and Don’ts of Raising Capital From Investors

    Equalize the power

    There’s no arguing investment is harder to come by than it was even a year ago. According to CB Insights, funding for Silicon Valley startups fell by 40% year-over-year in 2022 and the downtrend isn’t slowing.

    The recent collapse of Silicon Valley Bank — America’s 16th largest bank and a favorite among tech startups — is a testament, in part, to the mindset of financial scarcity that has rocked the tech sector amid mass layoffs and rising interest rates.

    Regardless of the economic climate, however, going into a pitch thinking an investor has more to offer you than the opportunity you’re presenting them with, will only hinder your chances of securing funding and finding the right partners.

    In a down economy, it’s easy to adopt a scarcity mindset, but it’s critical you understand your own value. If you don’t believe in yourself and your business, no one else will.

    When I started researching investors for my startup — there was an industry heavyweight at the top of my list. An entrepreneur herself, I knew she would understand the problem we were solving, but I didn’t have a warm intro to her.

    So, I got tickets to a pitch event she was judging and signed up to present. Had I not been confident in my pitch, I likely wouldn’t have mustered the courage to track her down and I certainly wouldn’t have landed a second meeting with her, which eventually led to her investing.

    If confidence is an issue, find a coach, get trained in public speaking and/or surround yourself with a team that hypes you up — having confidence will help equalize the power balance between you and the investors you’re pitching.

    Related: 3 Ways to Raise Capital and Take Your Business to the Next Level

    Build traction first

    There’s no denying, the downturn has changed how investors vet companies. The era of easy money, where any founder with a strong resume and attractive pitch deck can land funding, are gone.

    In this recessionary environment, startups that don’t have a shininess to them — a founding team with big names or an industry that’s trending in the press — but have numbers to back up their business are now attractive to investors.

    With VC funding down 37% in Q3 of 2022 from Q2, EY reported investors with dry powder are favoring entrepreneurs who show customer growth and retention while demonstrating a clear path to profitability. This sobering return to the basics of business may be a stark departure from the glory days of easy money, but it isn’t a bad thing for founders.

    For example, our startup operates in the treasury space — not exactly a captivating industry by mainstream standards — but because we’ve tapped into a double-sided marketplace and fixed inefficiencies on both sides, we’ve been able to generate significant traction.

    Approaching investors when your startup already has traction also allows you to negotiate a fair valuation and favorable terms at a time when investors are more discerning. Not to mention, it can serve as a litmus test for whether or not you’re ready to scale while boosting your confidence in securing the right investors.

    Related: How to Raise VC Funding When the Odds Are Against You

    Ask for feedback

    It can be hard to hear “no,” when you’re pitching your company, particularly when funding is more scarce. Rather than focusing on the rejection, however, try to uncover why an investor has passed on the opportunity.

    Every investor is looking at your company from a unique lens and there are many reasons behind a “no.” For example an investor may be looking at later-stage startups or have a minimum check size that is too large. It could be they don’t have the right expertise for your market or there’s a conflict in their portfolio. The point is you won’t know why an investor has passed on the opportunity unless you ask for feedback.

    After every pitch, I ask investors what resonated and what didn’t. I make it clear I view their candidness as a gesture of kindness, as it allows me to refine my pitch. This has allowed me to improve how I communicate my company’s value proposition. For example, I learned early on that I was too focused on my company’s short-term trajectory and not painting a clear enough picture of our longer-term strategy.

    Getting feedback from investors can also help determine who you want to work with down the road. Just because an investor passes, doesn’t mean they may not be a good partner for your next round.

    I also use feedback as a tool to cross-evaluate investors. If someone takes the time to specifically communicate why they’ve passed on the opportunity, for instance, it’s a good indication of what kind of partner they would be — if they’re putting in the effort to help a startup they’re passing on, imagine what kind of energy they’re giving to their existing portfolio.

    Raising money during a downturn comes with a unique set of challenges, but it’s not all bleak. Founders who focus on building viable businesses and look for investors who add strategic value to their companies will ultimately emerge stronger when the economic headwinds change.

    [ad_2]

    Yvette Wu

    Source link

  • When Is the Right Time to Seek Investor Funding? | Entrepreneur

    When Is the Right Time to Seek Investor Funding? | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Bootstrapping is difficult. Investor funding, if done incorrectly, can become a time bomb. So, what direction is best?

    Often, businesses start off with the founders funding them completely. Only a handful of startups are funded in the idea stage. Things can get tough along the way, and often, you’d need to choose whether to continue scratching to stay afloat or seek external funding.

    It’s a tough decision to make. On one hand, founders want to maintain substantial control of their projects. They also don’t want the pressure that comes with handling investors’ money. On the other hand, startups need money to survive and grow to their potential. This is what Harvard professor Noam Wasserman termed “The Founder’s Dilemma.”

    As a founder, you need to know when the time is right to seek and collect investors’ money. This article answers that question.

    Related: 8 Things to Consider to Find the Right Funding Option for Your Startup

    1. Figure out a working model first

    It might fascinate you to know that investors are always ready to sign checks whether the idea looks viable or not. However, investors can put you on a very short leash when they know that your idea isn’t practical enough. They do this by requesting ridiculously high equity.

    As an alternative, you need to perform all your preliminary experiments and find the exact business model that works for you before speaking with investors. It’s no news to founders, though, that finding a working model is not a walk in the park and that experiments often require some capital.

    In the earliest stages, you need to self-fund your idea as you take it through refinement. With inadequate capital, you should consider reaching out to family and friends for support. They are bound to believe in you more than total strangers with fat checks. Nearly 40% of founders follow this route.

    2. Create an MVP

    It’s rare for founders to focus completely on one aspect of a startup. Often, they have to oversee business development, product development, finance and every piece of the project simultaneously.

    While figuring out what variation of the business model works best, founders need to also ensure the product development works out successfully. Until then, it’s best to stay away from outside investors.

    However, some products are capital-intensive and will need big checks to fund them. In such cases, it’s advisable for a founder to create a prototype or a highly specific graphical rendering of the product.

    This provides a crystal clear description of how the product works and conveys some level of confidence to outside investors. With a prototype, your chances of landing an outside investor under favorable terms increase significantly.

    Related: Mistakes To Avoid When Seeking Funding

    3. Ensure it’s time to scale your idea

    You may have an MVP and a model that works on paper, but all those don’t matter until you’ve acquired a few real customers that are willing to pay for your product. By “real customers,” I’m not referring to family relatives and friends.

    If you have a few complete strangers paying to use your product, then you most likely have a practical model and valuable product. At this stage, you need to ensure that your business process is well-documented and can be recreated without smack-dab supervision.

    With all that in place, you can seek outside investor funding to hire more hands to recreate the process en masse.

    I often advise founders to look beyond securing investor funds. Founding a startup is one stage of your career, and the way you approach outside investments can have a significant impact on your reputation in the long run.

    Investors prefer to put their money on founders who have proven records of good investor relations and business success. So, if you’re looking to secure your first-ever funding round, be sure to do it at the right time to avoid jeopardizing your entrepreneurial career.

    Related: How to Know If You Need Funding (and How to Get It)

    [ad_2]

    Judah Longgrear

    Source link

  • How To Use Video to Deliver a Standout Pitch | Entrepreneur

    How To Use Video to Deliver a Standout Pitch | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    In 2022, investors spent 24% less time than in 2021 on startup pitch decks they faced. The average time they invested in successful pitch decks in 2022 was 2.46 minutes, and 3.30 minutes in 2021.

    According to many venture capitalists and Angel investors attending LEAP 2023, this trend will continue in 2023 with mass layoffs and a turbulent global economy.

    Yes. For startups, there is no ‘cheap money’ anymore.

    Coming to the technical side of things, in the past, pitch decks were primarily made up of text and images. Admittedly, text and complex graphics on pitch deck slides have lost their charming days – the rich eye-candy effect.

    So, what’s the game changer in 2023? Video.

    Technically, the power of video is becoming increasingly important in today’s investment climate.

    Related: Connecting With Your Target Audience Through Video

    Capture investor attention this year: the importance of video in pitch decks

    We all know that video is a dynamic and engaging medium that can help to bring a pitch deck to life, making it more compelling and memorable for investors. Let’s explore how video can enhance a pitch deck and why it’s becoming increasingly important in the current investment climate.

    Video can effectively convey a startup’s message and value proposition because it allows for multiple forms of communication, such as verbal, visual and audio. This can help to make the message more engaging and memorable for the viewer.

    Video presentations in pitch decks can increase investment chances by 50% and increase engagement and understanding by 80% compared to text alone.

    Additionally, video in pitch decks can be used to showcase a product or service in action, give a behind-the-scenes look at the company or introduce the team, which can help to build trust and credibility with investors.

    Examples of successful startups that have used video in their pitch decks include Dropbox, which used a simple animation to explain how their service worked, and Airbnb, which used a video of real customer testimonials to showcase the value of their platform.

    Understandably, using video alone won’t guarantee success. It should be incorporated with other elements of the pitch deck, such as clear and concise messaging, a strong value proposition and an understanding of the target audience.

    Related: Five Best Pitch Decks of All Time

    And here are some success stories!

    Dropbox: In its early days, Dropbox used an animated video to explain how its service worked. The video helped quickly convey their product’s value and how it solved a common problem.

    Airbnb: Airbnb started using videos of real customer testimonials to showcase the value of its platform. This helped to build trust and credibility with investors and demonstrate the real-world impact of their service.

    Square: Square used a video to introduce its team and showcase its product. This helped to build a personal connection with investors and demonstrate the ease of use of their payment processing solution.

    Zendesk: Using video to explain their product, Zendesk Chat helped businesses connect with customers in real time. This helped convey their product’s value and how it solved a common problem.

    It’s worth noting that these are just examples, and many more successful startups have used video in their pitch deck to convey their message and value proposition effectively.

    Tips for creating a compelling video pitch deck

    A successful video pitch deck is like a movie trailer, where every element is carefully crafted to engage the viewer and convey the key message effectively.

    1. The story — Storytelling is a crucial element of a video pitch deck. It’s important to have a clear and compelling story that communicates the problem your startup is solving, the solution you offer, and its impact on the market. This should be presented in a way that is easy to understand, relatable, and memorable.

    2. The design & visuals — Visuals are an important video pitch deck element. They should capture the viewer’s attention, convey information and help them understand your message. Using a mix of animation, live-action footage and infographics can make the video more engaging and memorable.

    3. The voice — Sound is another key element of a successful video pitch deck. A well-crafted soundtrack can set the tone, create an atmosphere and help to keep the viewer engaged. A professional voice-over can also help convey critical information and give a polished feel to the video.

    4. The alignment — Lastly, it’s essential to remember that a video pitch deck should be tailored to your target audience and align with your overall marketing strategy. It’s also important to ensure the video is high-quality, visually appealing and easy to understand.

    Over to you

    Many stalwart startup investors are being pretty vocal about using videos in startup pitch decks.

    Once, I was having a one-on-one conversation with one of my business connections (the investor herself); she told me that I would love to see more videos in fundraising pitches. She claimed that if 85% of her pitch decks included video, she probably would answer 85% of those emails.

    This is the game changer we have been talking about in this blog, and as a founder, you need to harness as much information as you can to set your deck presentation apart from the sea of pitch decks faced by investors.

    [ad_2]

    Vikas Agrawal

    Source link

  • 6 Personality Traits Investors Look For in Aspiring Entrepreneurs

    6 Personality Traits Investors Look For in Aspiring Entrepreneurs

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    There are more than 70,000 startup companies in the United States, across industries ranging from technology, biotech, direct-to-consumer, fintech and many others.

    While U.S. and global markets hold a lot of potential for the business-minded individual, it takes a lot of resources to get a business off the ground. Even then, it often requires financial assistance from lenders or investors to keep going.

    I’ve seen a lot of companies come and go over the years, and from my experience, there are several qualities that identify the likelihood of an entrepreneur’s success.

    Related: 5 Things Investors Want to Know Before Signing a Check

    1. Persistence

    Anyone can have a great idea or a solid business plan, but it takes persistence to take your business idea to the next level. Whether it’s trying and failing in product development or sending dozens of emails to VCs, a persistent individual will seize both good and bad experiences as learning opportunities.

    A willingness to learn from mistakes and continually ask questions or seek insight will propel the business toward the future. Persistence demonstrates a will-do attitude that shows VCs and other investors you are prepared to do what it takes to cross the finish line.

    Being able to not only outline past challenges you’ve faced, but to document and demonstrate your ability to pivot, learn and improve when needed, shows investors a level of persistence they need to see before moving forward.

    2. Decisiveness

    You may be a lone wolf when starting on the entrepreneurial journey, and you need to be comfortable with decision-making. Your choices will determine the trajectory of your business and you need to stand by your decisions. You won’t always be correct or make the right choice, but you must be willing to commit to the process.

    Your decisions to correct the problem then grow in significance, giving you another opportunity to confidently pursue another course of action. Decisiveness shows investors you’re ready to take charge, pivot when necessary and make the tough choices needed to push through adversity and keep things moving efficiently.

    When investors come knocking, it’s important to demonstrate the ability to make the tough calls and stand behind those decisions, even or especially when those choices impact the direction of your team and your business.

    Related: Here’s What’s Brewing in the Minds of Startup Investors

    3. Curiosity

    As an entrepreneur, you get to break away from the mold of traditional leadership and follow your interests, passions and plan. In order to do this, you must have a sense of curiosity that isn’t easily quenched.

    A need to know or a desire to expand will keep a business from getting stale and disengaging from the world around it. Serious investors love to see entrepreneurs pursue answers to challenging questions or explore opportunities with the potential to improve processes, productivity, and long-term potential.

    Have you gone to extra lengths to get an answer, increase efficiency or identify opportunities for improvement? Being able to point to specific instances of curiosity — and outline where they took your organization — shows a willingness to reject complacency, go beyond the status quo, and do what’s needed to make their investment worth it.

    4. Team building

    Good leaders can motivate the people around them, but they are also good at developing and empowering their teams. While the initial steps of entrepreneurship are often taken solo, it’s the diversity of strengths and weaknesses from a larger group that propel a company’s growth.

    Demonstrating an ability to put a quality team together with complementary talents showcases your ability as a leader. It also lets prospective investors know you understand the importance of teamwork and what it takes to transform a vision into reality.

    Take some time to not only outline your recruitment process but also your ability to identify and secure the best talent for your organization. Showing investors how you build and sustain successful teams, and how you bring people together in the pursuit of common company objectives, is key to capturing their interest and commitment.

    5. Adaptability

    If you’ve ever run an organization or held a leadership position for any length of time, you know change is inevitable. The economy changes, the market changes and consumers are notorious for changing their minds and shopping habits.

    Entrepreneurship requires facing new challenges or embracing new opportunities when you least expect them. It will be impossible for you to mentally or financially prepare for every scenario, which is why adaptability is important. The ability to rationally evaluate a situation, determine options calmly and objectively, and make adaptations as necessary is crucial to the success of your company.

    Remaining static and resisting change may be sustainable in the short term, but it can also create artificial barriers that hide opportunity, stymie long-term growth and send potential investors running for the exits.

    Think about any policies and processes you’ve instituted that enabled successful pivots in the past, or that empowered your team to adapt with minimal interruption. Show investors you not only understand the importance of flexibility but also what it takes to shift gears when the need arises.

    Related: How to Get Comfortable With Change and Build It Into the Foundation of Your Business

    6. Self-acceptance

    The sooner you accept the realities of being a startup founder, the easier it will be for you to spend time on what really matters. You aren’t going to be perfect; fortunately, neither is your competition. You will make decisions that don’t turn out so well, and you will have days when you don’t get everything done.

    For entrepreneurs, self-acceptance is the confidence needed to keep moving forward and following your goals. It’s the boost you need to try for another contract or make a change in your process. Accepting that entrepreneurship is a journey keeps good business-minded leaders from throwing in the towel when things get tough.

    Showing investors the ability not just to identify past mistakes and flaws, but to accept and move past them, helps establish a degree of confidence that their future investment will be put to good use and toward something with real potential.

    Although you may have a strong business plan and a great product or service, you need these personal qualities to carry you through life as an entrepreneur. These tend to be what investors look for when considering investment options, demonstrating a level of promise (and potential ROI) they need to see before funding.

    [ad_2]

    Cosmin Panait

    Source link

  • Retailers Rejected This ‘Taboo’ Product — Now It’s Worth Millions

    Retailers Rejected This ‘Taboo’ Product — Now It’s Worth Millions

    [ad_1]

    What do you think about a pubic haircare brand?


    Courtesy of Fur

    That was the question Fur co-founders Laura Schubert and Lillian Tung were asking back in 2015, as part of the qualitative research the duo conducted on family, friends — even strangers at cocktail parties.

    Schubert and Tung were on the cusp of launching an innovative body-care brand at the time, but it meant taking a big chance.

    Both Harvard grads who’d been friends since seventh grade, the soon-to-be co-founders had already established themselves in the corporate world. Schubert was a management consultant at Bain and Company, while Tung oversaw marketing at Maybelline — and was “super jaded” by the increasingly crowded beauty space.

    Still, Schubert was ready to tackle the then-untouched pubic haircare market, and after some persistence, she convinced Tung to join her. Now, their natural body-care collection is a major hit, including the Fur Oil that started it all: “gentle enough for pubic hair and skin, but effective from head to toe,” which retails for $52 per bottle.

    Entrepreneur sat down with Schubert and Tung to learn about the mission behind their “taboo” beauty line and how they transformed it from an idea to a cult favorite that counts actress Emma Watson among its many fans.

    Related: 100 Things You Need to Know to Succeed in the Modern Beauty Industry

    “[Pubic hair] was a taboo topic that people didn’t feel comfortable talking about.”

    It all started in 2014 when Schubert asked her sister and friends what they were doing in terms of body hair care.

    “I was getting waxed religiously at the time,” Schubert recalls, “and just thinking about, What do I want to wax? How do I want to wax? What do I do between sessions? I get terrible ingrowns — what are people doing about that?“

    The information available on the subject was scarce, and when Schubert searched for products that might help solve her problems, she came up empty-handed. Ultimately, she concluded that some serious stigma was at the root of the issue.

    “[Pubic hair] was a taboo topic that people didn’t feel comfortable talking about,” Schubert says — and she wanted to change that.

    “We all grow body hair,” she says. “We all choose to groom or not groom our body hair. And I just really got the feeling that people would want products like this.”

    There was only one choice when it came to body hair maintenance, Tung adds: removal.

    Schubert wanted to partner with Tung on the venture, so she got creative at her holiday party in 2014. She handed Tung the still-unnamed blue bottle of formula that would become the company’s groundbreaking oil, poured her a “really stiff drink” and asked her to give it a try.

    Tung, a lover of product formulas and development, was immediately impressed by the oil, which counts grape seed, jojoba, clary sage and tea tree oils among its key ingredients.

    “I tried the formula, and I thought it was amazing,” Tung recalls. “It did what it [was supposed to do] on the pubic hair area: softens your hair, makes your skin better, but also it’s just an amazing experience. And that was when I was like, Well, this could have legs.”

    Image credit: Courtesy of Fur

    Related: The Future of Innovation in the Beauty Industry

    “Either people immediately got it…Or people would be like, ‘That’s disgusting. I didn’t think women had body hair anymore.’”

    When Tung joined Schubert in the qualitative research process, asking a range of would-be consumers what they thought about a pubic haircare brand, she saw two camps emerge.

    “Either people immediately got it and loved it and said, ‘Wow, I can’t believe we never thought about this. I can’t believe a product like this doesn’t exist — that’s brilliant,’” Tung explains. “Or people would be like, ‘That’s disgusting. I didn’t think women had body hair anymore. Why would you do that? That’s gross.’”

    But from a marketing perspective, the polarized response intrigued Tung, who says that “strong reactions, positive or negative, mean that there’s something memorable — something for you to hang your hat on in terms of messaging.”

    That gives someone having an initially negative reaction to the idea the chance to engage with the conversation and potentially become open to it.

    “It allows them to at least think about it, and if they’re thinking about it, you can encourage them to talk about it,” Tung says. “If you can encourage people to talk about it and keep it a comfortable, safe space, people can express a variety of opinions and have the opportunity to change their minds, including myself.”

    When Schubert served as the brand’s “first salesperson” and took the product into stores, she often faced similar resistance. She recalls being kicked out for solicitation and told to go on Shark Tank (and they did in 2020, even striking an on-air deal with Lori Greiner).

    And even those who did express interest in the product had reservations about leaning into Fur’s unapologetically authentic branding: One major retailer loved everything about the oil but just didn’t think having the word “pubic” on the box would resonate with its customers.

    “We went pretty far down that path of evaluating,” Tung recalls, “Is pubic really a dirty word? Should we be removing it from our branding? But of course we knew we had to stay true to what we wanted to do and where we came from.”

    As co-founders who’d built their business from scratch and are still self-funded, turning down the request was tough — but essential.

    “It was a really big relationship,” Schubert says. “But we knew, being a mission-based brand, that that was something that we could never do. And so to this day, ‘pubic’ is on the front of the Fur Oil box. It will always be on the front of the Fur Oil box because this is what we’re here to do: to encourage conversations around pubic hair and body hair.”

    Image credit: Courtesy of Fur

    Related: Why You Should Do Everything You Can to Self-Fund Your Business

    “As a mission-based brand looking to destigmatize the taboo around body hair, it’s so important to be in places where everybody is thinking and shopping.”

    Fur’s dedication to its original mission continues to pay off big-time, attracting an enthusiastic fanbase that includes Hollywood A-listers like Emma Watson.

    It was 2017 when Fur’s website started “going crazy;” the co-founders discovered Watson’s Into the Gloss interview, where the actress and activist shared that Fur Oil is an essential part of her beauty routine.

    “She really understood our product,” Schubert says, “and we sold out of two years’ worth of product in three weeks. That was definitely a moment that put our brand very much on the map.”

    In the years since, Fur has stayed on the map (and expanded its territory) by rising to meet unforeseen challenges as they come up, especially as they pertain to growth and scale.

    Despite being “thrown for a loop” during Covid as many brands were, navigating changes in the market, digital platforms and, of course, the supply chain, Fur weathered the storm — and even thrived.

    The brand has quintupled its staff over the course of the pandemic and is on track to see more than $20 million in revenue this year.

    Part of the secret to Fur’s success lies in its prioritization of omnichannel growth.

    “It’s so important to be in places where everybody is thinking and shopping and has the ability to get to it,” Tung explains. “And if you were to look at our revenue breakdown, we’re very evenly split across all of our partnerships and our channels — that’s so important because in this day and age, people shop everywhere all the time.”

    Naturally, a lot has changed in the near-decade since Schubert first set out to solve the pubic problem no one was talking about, but when it comes to founders who might have an idea today (taboo or not), some lessons learned remain just as relevant.

    First, don’t wait to figure out the whole path, Tung suggests — just get started.

    And Schubert’s best piece of advice? (Also the very reason Fur exists.) “Every ‘no’ is a ‘not yet.’”

    [ad_2]

    Amanda Breen

    Source link

  • Your Cold Pitch Sucks. Here’s How to Approach Prospects the Right Way.

    Your Cold Pitch Sucks. Here’s How to Approach Prospects the Right Way.

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    It’s happened to you. A notification pops up that you have a direct message. Someone wants to connect. You open your DM to see a comment from a stranger about your post on social media or a compliment on your recent win to engage you in a seemingly innocent conversation. Those pleasantries are short-lived when suddenly their offer details start coming at you faster than ninja stars.

    What do you do? I block and delete those messages without batting an eye. Spammy cold pitches are one of my biggest pet peeves and they aren’t welcome in my space.

    Online platforms have opened up opportunities for entrepreneurs to connect with people who wouldn’t have been in their orbits before. That’s a good thing, but that doesn’t mean you should throw manners and etiquette out the window. You wouldn’t walk right up to someone in person and immediately start pitching them your products, so don’t do it online.

    Related: The Fine Art of Client Pitching

    The problem with blind cold pitches

    The copy-and-paste version of your sales spiel that you’re blindly sending to the masses completely lacks personality and sincerity. Worse yet, it shows that you are only interested in selfish gains. If you haven’t done your homework to learn about your prospect and understand their needs, they won’t want to invest their time listening to what you have to say.

    My time is valuable! A cold pitch shows me you don’t value my time. I’m loyal to people who take the time to build a great relationship with me and develop the know, like and trust factors. Those are the ones who will be collaborators with me for life. Your approach is key. You lose credibility when you send a cold pitch without building any rapport first.

    It takes time to cultivate a long-lasting business relationship, but the return on investment is much greater than the “spray and pray” method of broadcasting your wares. Your time is better spent building lasting relationships with someone who will need you in the future and will happily refer you many times over.

    Related: 5 Psychology-Backed Tips for Earning, and Keeping, a Prospect’s Trust

    The right approach

    For the best results, approach connecting through DM the same way you would network in person. At this stage, it’s not about making money from that first sale. Keep brand alignment top of mind, and determine if the person you want to connect with is the right fit for your business. Find the people who vibe with what you’re about, and leave your agenda at the door. This will ensure you’re approaching the relationship with authenticity, not “commission breath.”

    Look for opportunities to develop a genuine connection with them. When you take a sincere interest in others as a human being, that’s when the magic happens. It’s important to know about their business, but also take the time to look at what interests your prospect has outside of work. Do you have hobbies, groups or friends in common? Details like this can be found on their online platforms and make it easier for you to connect with them on a personal level.

    After you’ve done your research, send a message that provides the other person with a benefit. Lead with value! Assert your knowledge in a friendly way to begin building the foundation of your relationship. Recognize also that not everyone will be interested in connecting, regardless of your sincerity.

    A great relationship between me and a (fitness professional?) in my circle began in my DM. This person saw a flaw in one of the yoga poses that I shared on social media. He wanted to help, so he sent me a message. His request was too forward and personal, it caught me off-guard. He’s a giving person and genuinely wanted to help me, but without knowing him just yet, my spidey senses kicked in. Luckily, he pivoted from that first comment and took the time to build my trust in him.

    Over the next few months, he was active on my social media, cheering me on through my yoga journey and contributing to my page engagement. He provided value by sharing pointers with me that I could use to improve my poses. Pretty soon, I was reaching out to him with questions. He invested time in developing our relationship and showed me that he was an authority in his area of expertise.

    Related: The 6 Worst Opening Moves for Starting a Business Relationship

    Pursue quality over quantity

    Always pursue quality over quantity. You don’t need to spam everyone with a thoughtless message that will likely be ignored or get you blocked. Spend time making real connections with people you align with to form lasting relationships and create effortless business for the long haul.

    People work with others they know, like and trust — regardless of where they meet. Technology and online platforms provide valuable advantages to grow our network and work faster, but authentic relationships will always be key to lasting success.

    [ad_2]

    Jessica Dennehy

    Source link