How to pitch to investors

You are here because you want to learn how to pitch to investors as a Nigerian entrepreneur, you have made a brilliant choice.

Many budding business owners have exciting ideas on ways they plan to change the world. However, the vast majority of them do not get the right business funding. These ideas never develop into successful projects because a large number of entrepreneurs give up on their ideas. It is critical to note that there is a big gap between having a great business idea and fully executing it.

In entrepreneurship, success is often attributed to your team’s ability to execute right.

Most entrepreneurs think it is about the idea. While you invest a large chunk of time in preparing the business plan and fine-tuning your idea, it is also essential to think about how to get funding. This article here talks about sources of funds available to the Nigerian entrepreneur.

Related: Top 500 Business Ideas

Entrepreneurial success has a lot more to do with the team than the idea; the team executes, and investors love investing in formidable teams. It is your ability to execute that brings the desired return on investment.

Talking about execution, it is a wise practice to personally invest financially in your company, and at most, compliment your funding drive with angel investors.

Investors the class of venture capitalists want to be sure that you have honed in on your execution skills and that the product has been validated in the market before they invest – they love being within their comfort zones. They want to know that you are thoughtful, fast, and efficient and that you can sustain the project from inception to the targeted goal.

To attract such investors the likes of venture capitalists, you put together a pitch worthy of their time; they love seeing projections in terms of figures. Try to take your cue from investment programs like the Shark tank, dragons’ den, etc. It is not an easy feat to get others to invest in your company.

Related: Forecasting Revenue And Positioning A Company For Growth

Elements of a Great Business Pitch

A great pitch is a mix of personal and business factors. Whomever you are pitching, a partner, customer, or company, you have to appeal to them on a personal and business level. Without this, your pitch is bound to fall flat.

A great pitch is concise. Most of the time, you have just a few seconds to gain someone’s attention and get your point across. Also embrace focus and momentum, your best shot to nailing the pitch.

A great pitch is value-driven. Most investors are mostly interested in ‘how’ your business idea will add value to them. Instead of focusing on features, your pitch needs to strongly highlight the value it will offer both you and the investor because it should be mutually beneficial. 

Presentation Tips

  • How to pitch to investors
    Image Source: Grand Capital Investment Limited

If you are like me, your first time with an investor might be your first time having to make any presentation whatsoever. A good presentation must have certain elements. Here are some tips to guide you.

  1. Be Confident, not Arrogant: Most rising entrepreneurs tend to be ambitious but unrealistic. This is where they need to find a balance between the two microcosms. To get the desired return on investment (ROI), entrepreneurs need ambition, coupled with a realistic approach to how the targeted investment will be maximized. Erika Ashley, a social media influencer, marketing consultant and TEDx speaker, says it’s vital to prepare for a realistic presentation experience. Having realistic expectations will aid you when preparing. When practicing your pitch, prepare for interruptions because most investors will likely interject while you are still presenting, and this can throw you off balance.
  2. Use WHEN not IF: These two words can be tricky. Using ‘If’ in your presentation is a telltale sign that you lack confidence, and if you don’t show enough self-confidence, how do you expect investors to support your business idea? Instead, use ‘When’; it shows that you are in charge and capable of implementing the venture you are pitching. 
  3. Be Creative with Your Pitch Deck: Take time to design a concise pitch deck. Your pitch deck functions as a guide and visual reference point to the potential investors you are pitching. There are free pitch deck templates for PowerPoint that can assist you in kicking off the presentation. There are a large number of tools that can also aid you in creating a striking presentation.
Suggested: Keep At It, Don't Quit

Factors That May Affect Your Chances of Attracting the Investors You Pitch To

The Scalability of Your Idea: Typically, about 75% of venture capital-backed startups fail. With that fact in mind, most investors, especially venture capitalists lookout for investments that are very scalable; such that once it succeeds, they would have the chance of covering their investment portfolio at scale.

The team: Typically, you do wear many hats as an entrepreneur. You most often start out as the person in charge of the technical, marketing and financial part of the business. Note that your ideas are worthless, and no entrepreneur knows this as much as an investor. Investors invest in the team, not the idea.

It is the team’s collective strength that investors watch out for. It is one of the major factors that let them dig into their money bag to invest in your venture. So, ensure that you build a solid team.

Exit Strategy: Every investor wants to see an exit plan. The exit plan tells an investor amongst other things what his return on investment likely is, and how long the investment needs to take to get to the exit point. Ensure that your exit strategy is foolproof and well-articulated.

Suggested: How To Build Systems And Structures In Your Business
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Quick Summary

Prefer the short version? Here is a concise recap of the key ideas in this article.

Related: Forecasting Revenue And Positioning A Company For Growth Elements of a Great Business Pitch A great pitch is a mix of personal and business factors. Whomever you are pitching, a partner, customer, or company, you have to appeal to them on a personal and business level. A great pitch is value-driven. Most investors are mostly interested in ‘how’ your business idea will add value to them. Instead, use ‘When’; it shows that you are in charge and capable of implementing the venture you are pitching. Be Creative with Your Pitch Deck: Take time to design a concise pitch deck.

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