In this section, we discuss issues, practical tools, business modelling & identifying business opportunities to improve your funding profile and becoming attractive to funders.
Last weekend, we took a preliminary look at some core factors funders and investors start gauging the very second they open conversation with a potential business person.
This week, we look further at What Investors/Funders Are Looking, with a quick focus on your Pitch Deck.
In its barest/basic reality, Pitch Decks are paper…..until the ideas laid out become reality and funding comes in.
The pitch deck is a presentation that entrepreneurs /business people put together when seeking a round of financing from investors & funders. Google tells it is us used to provide an audience with a quick overview of your business plan, usually during face-to-face or online meetings with potential investors, customers, partners, and co-founders.
GetFundedAfrica finds it interesting that a lot of business people do not consider the human element behind potential investors & funders viewing a Pitch Deck. A Pitch Decks and its presentation, can make or completely break a business’s plans and future.
Does it scream negative about the mindset/competence of a promoter? Is the Pitch Deck lined up for an early Monday morning schedule of the investor? Did you do adequate research on the potential funder representatives or the institution itself? Are you slides sloppy & littered with errors or not connecting with the business idea presented?
- Our experience has shown, that quite a number of entrepreneurs, start-ups or even growth companies seem reluctant to pay professional financial analysts to create Pitch-decks. Looking at the smaller picture (the potential fee) as against the potential pay-off (let’s say $millions in funding if successful) is a position we strongly consider our readers to weigh up appropriately in terms of Cost-Benefit Analysis.
- GetFundedAfrica recommends that Pitch-Decks/Presentations should include strong Business Model outlines. This area, along with creating Pitch-Decks and Cost-Benefit analysis, rank among further services GetFundedAfrica can provide to our readers.
We summarise some key points Investors require in a Pitch Deck:
1. Start with your value proposition.
Start by showing the problem your product/service (P&S) is solving – and then exactly how your offering does it.
2. Provide social proof.
Show that existing businesses use your P&S, or something similar (if yours has not been launched) or valid evidence (like an indepth and executed Customer Survey). This gives investors & funders the social proof that industry leaders/potential customers or clients and stakeholders (could be government agency etc) believe in your P&S. This also says – investors should believe in it too.
GetFundedAfrica is experienced at executing Qualitative & Quantitative Market & Customer Research Services in any part of Africa for clients, for Market Entry, Expansion, Channel Delivery, Bring To Market etc
3. Share customer data and growth.
Data provides hard facts and reduces doubt & risk. Provide data detailing your customer growth or potential growth
4. Be transparent about your current financials.
From the second you open your mouth to potential funders/investors – they quickly begin an assessment of establishing level of integrity. Be transparent with the funding you have already received, how the funding was utilised, lessons or errors learned, what you would do differently or how the funding successfully impacted your business.
5. Share your annual recurring revenue plan.
In addition to no 4. share the annual recurring revenue targets for the company moving forward.
6. Share your future vision.
Share how your company will grow – short, mid & long term.
7. Cultivate relationships with investors.
Our referenced article states – “It’s not just about a killer presentation. In an article on Medium, Collin shared that building relationships with investors was ongoing, organic process — and that relationships were four years in the making.
“I leveraged my existing relationships with one partner in each of the venture capital firms to be able to get a partner meeting right away. Building these relationships happened over the course of Front’s entire existence, so in effect, it took me 4+ years to secure this funding,” she said.
“Build relationships early and maintain them regularly, but keep it short and focused. I usually meet with each firm once every 3 to 6 months.”
Interested in creating Pitch Decks to get funding? Contact GetFundedAfrica here: firstname.lastname@example.org
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