How To Connect With Investors in Your Pitch

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In pitching investors, founders should strive to connect with them.

Here are some key steps to connect with investors:

Fit the startup fundraising standards.

Too many out-of-standard details such as fundraise amount, terms, and valuation will put off the investor.

For example, traditional first rounds are $500K to $1M.

Asking for $4M in the first round will have the investor wondering why this is different.

Provide the standard information investors look for, including problem, solution, and how it works.

A good practice is to say what you do in five words or less so the investor knows what the startup does.

Without context, the investor will have a hard time connecting to your deal.

Many founders talk about how the product works without first identifying what problem they are solving.

Avoid long-winded stories and get to the point.

Include the fundraising ask with a clear use of funds.

Investors want to know where the business stands today.

Show current traction and avoid rosy projections as the investor knows those rarely come true.

Finally, demonstrate the team's capabilities.

Since there's little revenue at this stage, the investor will make the investment decision on the team.

Consider these steps in connecting with investors in your pitch.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

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