If you’re looking for angel investors or an infusion of venture capital, here are a few tips:
1. Regardless of your product, service or invention, experience is critical. You need to prove that your MANAGEMENT TEAM has a track record of success. If you’ve never run a business, your chances of securing funding from any source (including banks, friends and family) are extremely limited. Assemble a team that has taken companies from start-up through exit stages.
2. Understand the marketplace. You need to convince investors that your idea will work in all market conditions and you must demonstrate the SIZE, BREADTH AND GROWTH POTENTIAL of your target audience. This takes research and resources. Do you have enough seed money to start the process?
3. You must DIFFERENTIATE YOURSELF AND YOUR IDEA. For example, if you have a technological innovation, is it patented? Investors need to know how and why they will make money, and they are searching for niche offerings that are not easily duplicated.
4. You must have well researched, professionally prepared and detailed BUSINESS AND MARKETING PLANS geared toward the financial/venture capital audience.
5. You must have an ELEVATOR SPEECH and a CONCISE (no more than ten slide PPT) PRESENTATION to capture the attention of investors. Why should they give you money? How will they make money in the short and long term? What makes you special? No investors will look at your detailed plans if you don’t first peak their interest and imagination.
6. Show PASSION for your idea. In some instances, potential investors or strategic partners will be bored with your specific proposal but excited by YOU and your enthusiasm!
These are just a few basics, but they will start you on the right track.