As a start-up, pitching is one of the most important things you will be confronted with. Although you will think that you can answer any question from the investor, you must think carefully and practice. Here are 8 important questions you can expect when pitching to investors:
1. What do your customers need and how do you know for sure?
It’s not enough to just tell investors what the need is of your product. To identify the needs of your product, you will need hard facts and practical examples to prove this.
2. Which evidence can prove prior business success?
When discussing your background, do not use the names of companies you have worked for or your education. Name specific business performance such as; developed products and projects. Investors are interested in measurable evidence.
3. Who’s in your team?
For many investors, the team is just as important as the product or service of the startup. Focus on the experience, network and expertise that your team owns. If you don’t possess all the knowledge and capability, show the investors that you have specific plans to hire talent.
4. How well do you know your competitors?
Do not try to make your startup unique to investors by telling them that you don’t have any competitors. Be specific about the companies you are dealing with. If you show them how well you understand the competition, you can face the challenges.
5. What’s your competitive advantage?
When speaking of competitive advantage talk about specific information. Show the investors clearly why your startup is different and special.
6. How do you define your target market?
Make sure you can clearly identify the market segment and the target market. Also it’s important to explain how you can achieve it. Base this on good research and make the growth potential clear.
7. What have you already achieved?
Focus on the performance you have achieved so far. New clients, projects or employees you have attracted. Focus on milestones and performance. Investors want certainty, that’s why you want to offer them certainty.
8. Why do you need the investment?
Investors want to know what you are going to do with the investment, such as developing new products. You must be able to show the milestones what will be achieved with this financing round.