9 Effective Tricks for Startups to Get the First Investor
Raising money for a new venture is not an easy task. You need a proper strategy, along with a clearly unique (or at least buzzing) business idea, to attract first investors.
There are numerous difficulties in Startup funding but you can deal with them if you know the right ways. Here are 9 Effective Tricks for Startups to Get the First Investors. Try to implement these tips and you will surely succeed in startup funding –
- Impress Investors so that they fix another Meeting
It will not happen at once. There will be multiple meetings, continuing for weeks, which will lead to secure an investment. So, try creating an amazing impression in the first meeting if you want your potential investors to ask you for one more meeting.
- Be precise. Explain with Data and Facts.
Analyze current market trends and customers’ interests. Prepare data-specific presentations to help the investors understand that why an idea can hit the market.
- Don’t Decorate your Words. Say it straight!
Jargons, adjectives, hypothetical talks and generalized talks may look good in front of naïves but it’s not something which you can convince your investors with. Saying “we are among top 5” when you don’t even exist is not a good idea, right?
So, talk about – how will your customer base grow, who will be your customers and other such meaningful things.
- What’s the benefit of investing in your Startup?
Your passions, goals, inspirations, and the idea itself – nothing will be able to grab your investor’s interest if there is nothing for them. Tell them how the success of your startup will help in fulfilling their financial objectives.
- Prioritize your investors’ questions: Be spontaneous and accurate
Get ready to elaborate your idea with the slides and presentations in order to clarify it to your to-be-investors. But never tell them to wait until the presentation is over (it’s such a bad idea that no entrepreneur will do it). Sidelining their questions may result in sidelining for your startup idea. So, always respond with the best possible answer to their questions – spontaneously.
- Expect for toughest questions to arrive and prepare well for the situation
It’s tough to win the confidence of big investors – mark this fact.
So, prepare yourself for every type of questions to arrive and answer every of those questions with clarity, confidence and right data, just as they expect.
- Why should they trust you? How passionate are you? Efforts?
What’s your background? Are you still doing a job or quit it to follow your passion? How serious are you, towards the idea currently being discussed? How much time and resources are you going to put at work for your idea’s success?
All these questions matter for your investors. Let them know why they should invest in your idea, instead of buying a new luxurious mansion.
- Clarify how much Investment you are seeking for.
Negotiation and letting the other party put their expected financial figures may be a good idea for business but not when you are expecting the first investor to fund your start up. So, tell them about your expected figures if you want to make an impact. Also, it will let then think if they can do it or not.
- Why this idea and nothing else? Why is it the right time to deploy it in the market?
Learn about the scope of your own idea in the current market. Present facts and figures to tell the angel investors, interested in startup funding for you, that why you are sticking with this idea only, and nothing else.
Use the above ideas to make an impact on the investors and you’ll definitely in Startup funding. Have more ideas? Let me and our readers know too. Drop them in the comment box to help everyone out there.