Investor Pitching
we’ll discuss about
How to pitch investors
It may seem very easy in movies
That we went to an investor and demanded 1 crore
you set up your business with that money and you became a millionaire.
It just looks easy.
Whether your business model is good or your team is good
Maybe your business is in profit
But it’s possible tht you may get rejected
Investors may reject you
For example- Airbnb
Top online platform for flights
They were rejected too
you might know about the pinterest
They were rejected 10 times by investors>
You must be familiar with sales force
They are the leader of their industry
They were rejected too
So this may look glamours to some people
It’s not that easy.
Basically finances are of two types.
One is traditional financing
In this, i need money for my business so i went to bank for money or from my family
Or my own money.
This is traditional financing.
It’s a type of loan
2nd is private financing
Here comes angel investors.
Venture capitalist
Basically risk is high here.
Person who is investing asks for return back in the next 5 years.
First of all, let’s understand the stages.
How do we need to ask for investment.
If you have an idea and need investment
Don’t go to investors in the initial phase.
First step is bootstrap
WHere you gathered the team and decided what you are going to do.
After that you borrowed money from friends, family
Started the work
And created a physical layout
Your website is ready
That you can show your investors.
Then comes VC, angel investor
These are the three stages: Bootstrapping
Money from friends & family
Third is from big investors.
If you think your business idea is solid
But don’t have enough money
and my friends, family don’t hvae that much money
You need to check two things here
First is scalability
RIght now you think your market is worth 1 crore.
Can you expand it to 100 crore after taking the investment
Is it possible?
Second is revenue stream
If my company is earning 100rs/day
In future, can it earn in lakhs?
You need to consideer these points.
If you have these two factors.
So chances are, you can get early investments.
Here two things are hidden
One is your team , their level
their skills
Second is your product and services.
How solid your ideas are?
Now don’t tell me that your idea is unique.
and there is no competition
If you said this to investor that you competition doesn’t exist.
The investor
Giving you the money is a businessman too
They just want to double their money in the next 5 years.
If your market is zero, no competition
Then you have to educate the market first.
Then people will get to know about it
It’ll take around 10 year to establish your company
Maybe by that time your competition may increase too
And always decide the amount of money you want to take.
and where to invest it.
For example, i am talking about facebook here.
Do you know?
They’ve established their business with not more than 1 million
Now if you are goinf to investor
Do you think you can establish a business like facebook within 5crore.
I think you get it .
If you really wanna appreciate my work then please share this article
Total Users : 2806
Total views : 4176