Attracting the right investors to your startup idea can be difficult, especially in the COVID-19 climate. However, raising funds for startup development is necessary if you want to build a sustainable business. Based on Fortunly, there were 31.7 million small businesses in the US in 2020 however 42% of startups failed because the market didn’t need their products. This can make investors apprehensive about financially backing startups that are based on abstract plans and lack concrete development plans.
According to Forbes, companies that presell products and services close 40-50% more leads and retain 80-90% more customers. It’s why writing a startup investment teaser about your future business can open a lot of investors’ doors for you. Let’s take a look at what goes into writing the perfect startup investment teaser and how you can make the most of it in 2021.
The term pitch to investors comes from “elevator pitch“, but what exactly is an elevator pitch? We will use an example to explain it.
Imagine that you have a business idea. You have a clear business plan, you have a couple of partners who support the idea but you lack a key element: investment. You know that there is an important investor who may be interested in the idea. To get his attention, you go to his workplace and wait for him to enter the lobby. He goes to the lift to go up to his office and you see it as a golden opportunity. You enter the lift with him and explain to him, during the lift ride, what your business idea is, with the aim of getting him interested in it.
This short, direct and seductive speech is the elevator pitch or pitch to investors. At Itnig we offer a weekly pitch to investors which you can attend, but first, we will explain how to prepare the exemplary pitch.