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During Entrepreneur India 2016 convention, we organized the 7th edition of Startup Kickoff, wherein, the investors and mentors met quite a few innovative people with some great ideas. Needless to say, many insightful conversations took place over the cup of coffee(s), with these business minds sharing their takes on the entrepreneurial ideas with each other in a detailed manner.
Here are a few pearls of wisdom for entrepreneurs, who are calling out investors, to seek funds for their ventures.
Is your pitch planned?
Startups, this is the most important question you need to ask yourself before approaching the investors. The purpose of the pitch is to present your potential investor something that he would like to see. Make sure that your pitch deck is crisp and it has everything it needs to attract an investor’s eye. Always finish your pitch within the given time limit, as investors don’t want lengthy presentations.
Do you really need a funding?
Try to find the answer to this question, before approaching the investors. This is something you need to figure out on your own, because for every startup funding is a very curial part of their journey. Does your startup really needs funding? Do you really need to approach investors? Do you have a clear vision of what you want to do and achieve with your startup? Try looking for funds from the investors, if you really need them.
If you are stepping into the market, then it goes without saying that a competitor is already waiting for you out there. And if you say that ‘I have no competition’, it will leave a bad impression on the investors. They will think of you as, either an ignorant or in denial. Every new company that pops-up has a competitor in the market. So know your competition and showcase how you have an edge over them.
Do your homework well
Always remember, before approaching any investor, every entrepreneur should be well aware about their product, its offering, competitors, their limitation, market scenario and their target audiences on account of which they are seeking investment.
“It is very easy to find out the email address of 50 investors and spam them. But before approaching them, you also need to do your homework in terms of who are the guys that are going to invest in your space, or who have already invested in your space. Do your study with respect to what is happening in your domain,” said Girish Shivani of YourNest Angels.
Do remember, investors are the ones who are going to back your idea with their funds, so prepare yourself wisely, before approaching them.