Tips & Tricks to Impress the Potential Investor of Your StartUp
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It’s no secret that India is speedily becoming a start-up hub. The average age of a founder is 37 while the youngest entrepreneur is 26! India is on the hot circuit since 2006 and there is no slowing down. The start-ups naturally attract the investors and there has been no dearth in the industry for it. However, finding a investor, that too a right one, is a daunting task.
You should approach an investor not only for funding but also for different other avenues that it would open up for you. Typically, an investor, besides helping you with the moolah, should be able to help in building a good experienced team, open up his networks for you and, most importantly, he should have previous experience in the sector you are in. Getting funded is more than getting the dollars, it’s about you and your investor sharing the same vision and are on the same wavelength.
It’s very important to look at your investor as a member of your own team who is working late nights to achieve your dream, only then will you be able to run faster towards your goal. Do a complete research on the venture capital fund you are approaching and also the director of that fund. As a first step, it’s best to attend conferences and hear them out, talk to them in an informal setting and try building up a rapport. Some of the conferences you should look out for are the ones organized by IAMAI, CII, FICCI, ASSOCHAM etc. Once you are sure of the investor you want to target, prepare an elevator pitch.
Listing down a few Dos and Don’t s (pdf), you are advised to follow them before approaching your chosen investors with your ‘elevator pitch’.
DOs:
- Be concise, 30minute PowerPoint presentation should be your target.
- Be prepared – dry run.
- Appoint a team leader.
- Be open and honest in your communication.
- Be passionate but receptive.
- Demonstrate the team’s commitment towards the company.
- Be prepared to defend your key strategic assumptions and financial forecasts
- Have an exit strategy (IPO, merger/acquisition) but don’t appear anxious to jettison the company.
DON’Ts:
- Be late and disorganized.
- Talk too much or over-sell.
- Concoct answers. You can always ask your investors to get back to them with correct information.
- Pretend to know it all.
- Dismiss the competition. You must clearly articulate your competitive advantage.
- Go to the meeting without having a firm command of the company’s key operating metrics and how they are/will be tracked and utilized.
Hope the pointers were of some help and best of luck to all the young budding entrepreneurs out there 
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