#2 from 10 – The FREE course for raising capital from VC firms and angel investors

How to get investors interested in your venture

Even if you have a strong database of investors to choose from or you know which specific venture capitalist is interested in your type of business you have to get them interested in your venture. Sure, this would be a piece of cake if you could have a half of hour with the VC to explain him how your business works and what are the benefits. Unfortunately, it does not work that way. VCs are bombarded with business plans and they do not have time to listen to long presentations every day.

You have to keep it short, simple and convincing. Imagine yourself in an elevator with the VC. A conversation that can change your life. What do you say? You would probably waste precious moments thinking where to start, unless you have an elevator pitch or a high concept pitch ready. What are these and how can you use them?

A high concept pitch is a single sentence that concentrates the essence of your company. It should be very simple to understand. Maybe an association with an already known business venture that can clear up what you do. This will not be aimed only to the investor but also to your clients and will identify your brand so get it right and test it on many people before using it in an important context.

An elevator pitch is a longer version of the high concept pitch and slightly different. It should be a short description of your business idea, which focuses on the benefits of your product or service. Is it a new product? Does it meet a need nobody else covers? How can you do that in less than 3 minutes? Use analogies and comparisons with companies who have similar products or services.

Presenting the idea is not enough. Even if it is brilliant why should the VC be interested? Someone else may already do it or someone else can do it better than you, that is why you have to emphasize your competitive advantage and state why you can do it better than anyone else can.

If you cannot meet the investor or cannot phone him, you will probably email him. For that, you need a perfect teaser email. Now, this can be extremely successful if it is done right. This is a short email designed to arouse interest and determine the investor to ask for your business plan. Do not send the business plan first because nobody will analyze it. Send the teaser email instead.

This email should be short (no more than 200 words) and contain 5-6 bullets with key information about your venture and the benefits of your product or service. Talk about the market opportunities, current market share and about the management team and its ability to generate revenues. Put a time pressure to determine the VC to act.

Ok, you got the attention and now they want to know more. Now, to convince them funding you is a good idea you have to have a strong business plan and executive summary but about that, we will talk in tomorrow’s newsletter.