How to communicate with investors?
Who talks to the investor and how the pitch is delivered, are as much success factors as the message. Read on for a few tips on approaching and communicating with investors.
Approach the right sort of investor
Identify investors who are investing in your vertical. When HealthyWorld.in needed funds, CEO and co-founder Puru Gupta studied the market and short-listed investors investing in the health care space or looking at good generic ideas.
Get a head start
“References work best to get introduced to VCs as they establish a ‘base’ credibility,” opines Gupta.
He believes references help lower the possibility that investors misunderstand your plan even before giving you a chance to explain it. “Our experience has been that investors tend to slot your plan in to one of several templates they may have worked on before, which is not always the case.”
If you can’t find someone to introduce you to VCs, participate in a start-up conclave to meet an investor face to face.
“Start-up meets organised by Yourstory, NextBigWhat, NASSCOM and TiE, are some great places to meet investors,” suggests B Mohan Kumar, founder director & chief evangelizing officer, iAccept Softwares Pvt. Ltd.
Deliver the message well
You’ve prepared a slide deck that conveys the information that investors are looking for. Now give some thought to how to effectively deliver that message.
“Your passion for your product should be palpable in your speech. Investors want to see enthusiasm,” says Aftab Malhotra, co-founder and chief growth officer, GrowthEnabler, a company offering growth advice and coaching to businesses globally.
To infuse a sense of enthusiasm in investors, Malhotra suggests creating a sense of urgency. “Show them the impact of not solving the problem; make them feel that they’ll miss the bus if they choose not to invest in your company. Choose words that showcase the potential of the opportunity—‘Imagine, what-if, huge potential unlimited growth opportunity, massive unmet need, untapped market etc.’”