The capital of a company is one of the first things that you must obtain to crystallise your dream of opening a business. Therefore, it is important to know how to attract investors to your start-up.
The creator of iRobot, Rodney Brooks, had the idea of building a low-cost robot that could collaborate with workers in a safe, intelligent, low-cost way for companies who purchase the invention.
It may only be an idea, but Brooks made an analogy between computers and robots with the argument that the adoption of worker robots would be similar to the introduction of personal computers in workplaces. This would result in higher office efficiency, more productivity and more jobs. This is why investors gave him $62 million to fund its start-up.
So that your business idea has the support of more investors, we share a list of tips to help you create a connection with them.
Talk to the right people
The first step is to understand the interests of each investor, so we suggest you investigate your potential investors before talking to them about the ideas you have.
This step will help you know if your company can adapt to and will thrive in the investment industry.
Once you determine who may be interested in investing in your business, you should look at ways in which the manager of one of the start-ups can present you with the investor.
Make a presentation
This refers to when you agree to an interview with the prospective investor and make a presentation that will tell your story in non-technical terms. In the presentation, you should talk about your team, the opportunity in the market, the need for the product, its value to the customer, your position against competition, how much capital you require to create the company and have a financial plan to present also.
Acknowledge your areas of opportunity
During the interview with the potential investor you must be honest in answering each of the questions you ask. If you do not have an answer, you should admit it and not lie about something you know about.
It is possible that in the first meetings with potential investors, you fail to capture the interest of any of them; however, you should not discard the tips that they share.
The best practice in such cases is to listen to feedback, absorb information and tailor your pitch.
If you enjoyed this blog from Your Virtual Office London you can read more business tips and advice in our startup blog.