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How to write a startup pitch to attract investors

Every startup has some values. Unfortunately, many startup owners do not know how to highlight them properly. That is the reason why they need to learn how to write a startup pitch to attract investors, writes Donald Fomby

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attract investors

There is one fascinating fact that will probably surprise many startup owners. Believe it or not, around 75% of startups used personal savings during the development process.

In other words, the statistics confirm that to attract investors is a challenging task. Yet, the purpose of those statistics is not to scare people. The only thing they need to do is to write an effective startup pitch.

Every startup has some values. Unfortunately, many startup owners do not know how to highlight them properly. That is the reason why they need to learn how to write a startup pitch to attract investors. They need to go through a couple of stages to reach their goal. Let’s find out those stages together!

Start with Engaging Opening Overview

The first section of the startup pitch is the place where startups talk about themselves. They need to explain who they are, in which industry they work, and what exactly they are offering. They should strive to do that as simply as possible. The way LinkedIn did it many years ago may serve as an inspiration.

Attract investors

Source: rocketspace.com

As people can see, they used only one sentence to describe who they are. Despite that, they used some visuals to describe the services they are offering. We can all probably agree that an opening overview of their startup pitch is simple, clear, and eye-pleasing.

Problem-Solution Section

The Problem-solution section is probably the most important part of a startup pitch. It is part of the document where people need to highlight the main advantages of their products.

The problem that people have should come in the form of a story. Startup owners should use different statistics and data to confirm that a problem actually exists. That is the best method for entrepreneurs to confirm their idea has the perspective to grow.

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On the other hand, the part about the solution needs to be related to the products a startup is offering. It needs to describe all the values and benefits of a product that will solve the problem that people have.

Both parts should be short and simple. Startup owners sometimes like to use confusing terms and wordy sentences. However, they need to remember that investors are not always familiar with the industry the company is working in. Thus, the simplicity of the content will help him/her understand all the details correctly. The way Airbnb did it many years ago is an example of how the problem-solution section should look.

Attract investors

Source: Rocketspace

 

Attract investors

Source: Rocketspace

 

Describe the Target Audience

Potential investors would like to know more details about the target market of the startup. Business owners should not try to impress the investors in this part. They know very well that not everyone is going to need the benefits a product is offering.

There are two things people need to do when describing their target audience. Before everything, they will have to be realistic. Despite that, they should try to develop a user persona before they even start chasing the investors.

There are a couple of ways how people can do that. For instance, they can check the insights that social media networks provide them with. Those pieces of data will help people determine different personal characteristics, interests, and concerns of their customers. All those insights can be part of a startup pitch. They will only confirm that there truly is a group of people that will look for a type of product a company is offering. The way Facebook did it can be inspirational for many startup owners.

Attract investors

Source: tutsplus.com

Attract investors

Source: Tutsplus.com

Building Credibility through Relevant Tractions and Milestones

The idea startup owners have may seem perfect to attract investors. However, something they would also like to know is whether a startup is capable of achieving all the goals. That is the reason why it is essential to confirm the credibility of the business.

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In this part, people should describe all achievements all the members of the team previously had. For instance, they can talk about the products they developed, contracts they previously signed, etc. The investor would like to know how the business functions without any type of funding. Mint’s startup pitch may serve as a good guideline.

Attract investors

Source: Tutsplus

However, startups should not talk only about past achievements. They should also talk about future achievements they plan to reach. In that way, the investor will understand the desire of entrepreneurs to grow in the future. Thanks to the future optimization section, uber managed to become one of the successful startups in the world.

Attract investors

Source: rocketspace

Talk about Competitors as Well

The investor would like to know how competitive the business field of the startup is. Business owners often try to skip this part when the competition is tough. However, there is no reason to do that.

Instead of that, businesses should use their startup pitch to compare themselves with other competitors and mark the reasons why they have a better perspective. In most cases, they should highlight all the benefits they have. Once again, Airbnb’s startup pitch is something people should check out. 

Attract investors

Source: tutusplus.com

Proofread Your Content

Startup owners do not have to necessarily be good writers or designers. The content inside the startup pitch must not contain grammatical and spelling mistakes. Despite that, it also needs to be eye-pleasing for the people. There are many graphic design tools as well as online writing tools that can help them improve the quality of their startup pitch.

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For a better quality of textual content, startup owners should use TrustMyPaper, and SupremeDissertations, Grammarly, and Hemingway.

On the other hand, if people want to design their startup pitch properly (to attract investors), they should check out tools like Photoshop, Prezi, and Canva. All these tools will improve the look of a startup pitch, and make it more eye-pleasing.

Final Thought

The previous six steps will help people design an engaging and valuable startup pitch. With the tools mentioned in the text, the entire process of designing may seem easier. The point of an effective startup pitch is to be objective and full of essential details.

People can choose the best possible way to represent those pieces of information to investors. The best way to do that is by using a combination of textual and visual content.

If startup owners complete their tasks properly, their company will, sooner or later, become a magnet for investors.

Donald Fomby is a freelance writer.

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  1. Pingback: How to write a startup pitch to attract investors - 9jaheadies

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