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Having a business idea is the first step.

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What follows is research, development, funding, hiring, amidst the absolute lack of sleep.  

After you have an idea and work towards it, you require funding to take it to the next level. Everyone knows that. And yet, it is difficult for so many entrepreneurs to showcase the passion and profits in a simple pitch on the final day.  

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If you are required to make a pitch to venture capitalists during your business journey, these are 6 tips that can help you do so!

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How to Pitch Your Business Idea to Venture Capitalists (VCs) and Potential Investors?

Know the core:

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‍This seems like an obvious thing to remember. And it is. But, with all the stress and preparation, entrepreneurs tend to forget the core of why they are doing this in the first place. Just because you have to discuss your financial projections and marketing plans, does not mean you should forget the core of your business. And that is you. Remember to treat this presentation seriously but talk to the VCs in a way that is authentic and tells them every detail about this business in a non-jargon sort of way. Tell them the story of why you chose this idea and how everything else relates to the first dream you had and the problem you wish to solve with your product or service.

Research and reach out:

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‍Find investors that match your vision then tailor your pitch according to their style of working. Do not lost yourself and be authentic, but also remember to convey your ideas in a way that is appealing to the particular investor(s) you speak to. Research about them well before hand and make sure you present to those who can truly help your business and support you through the journey.  

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Take Shark Tank for instance.  

Even if your idea is amazing, investors may not want to put in their money and effort into your company because it might not be their expertise. And although it is very logical to do so on their part, it reduces your potential funding options in the room. So, when you do present to VCs, do your research and try to speak to the ones that either work in the same field, industry, or area you are trying to enter or have had experience advising and investing in similar businesses. But do remember that not all investors may want to invest in your idea if they have already seen or invested in a similar one. So, research well and keep your unique selling points (USPs) ready!

Have supporting evidence:

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Use impactful and interesting statistics. Don’t use numbers solely for the sake of it and definitely don’t use any which do not come from sources other than .edu or .org or .gov. Use facts and statistics that truly add value to the presentation and work as a transition into whatever you want to say. Random percentages and values can stick out like sore thumbs in such pitches if not corroborated by how they support your idea and vice versa.  

Also, learn to omit and implement. Keep all the numbers with you (by all means, do extra research) but learn to only mention extra information if asked.  

If you are launching and targeting the market in Singapore at first, do not spend too much time discussing the potential market size in USA. Showcase that number on a graph and simply say how that number can be useful if and when you expand into USA. Have SMART (specific, measurable, achievable, relevant, and time-bound) goals and showcase those with all the evidence you have.  

Keep the frills ready:

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‍Whether it is the Kickstarter page or a crowdfunding video or a 3D printed prototype, keep everything ready and try to show it during your presentation. It may seem like an extra effort to prepare anything other than the main slide deck you might be using, but having more applicable evidence as compared to simply theoretical, will help make your case. For instance, if you have a service or app you are showing, create an online prototype and a user journey/app design using tools like Figma. If you have a product you want to sell, have a physical prototype with you to show investors how your idea will translate.  

Know your strengths but definitely know your weaknesses:

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‍VCs are intelligent people. They understand nervousness and can be forgiving, but they definitely can see through pretence. If you have particular strengths, showcase those. Show your interest, expertise, and passion through the way you present as well as your material. But, if there is something you are not good at, ask for help. During the Q&A session after your pitch, if you do not have a solid answer, be honest about it. Do not pretend or try to make up one because it can only make you seem underprepared yet overconfident. Furthermore, try to divide and conquer the pitch.  

For example, you are a team of 5 people.  

Do not make only 1 person present the whole idea. Divide each part of the pitch based on your roles in the company. Get the Founder/CEO (Chief Executive Officer) to start the pitch. Make sure the CFO (Chief Financial Officer) discusses the financials. Make sure the CTO (Chief Technical Officer) discusses the consumer journey/application and the Chief Marketing Officer (CMO) discusses growth and scaling. Every member should have a distinct role/job description so the investors can see your planning and specialized skills. But do make sure that every member of the team follows the same idea and has facts that do not contradict each other so you don't look unprepared.  

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Learn to take a "No":

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If getting funding was easy, I would not be writing this article. It can be a long and tiring process, but remember that a VC’s “No” can be a blessing in disguise. Do not be disheartened if the investor decides to not fund your idea. It is perfectly okay to take some time and improve the idea/pitch. Remember to ask them for their feedback and ways you can change or improve your idea/presentation.  

If investors say your idea or pitching is flawed, ask how you can make it better and then take actions to do so.  

If they have other reasons for not investing (already invested in similar ideas/not their expertise), request them to connect you other people in their network who might be able to guide you. VCs have extremely wide networks and many will be willing to pass on your name and recommend others to you if they cannot help. Learn from the "No "and don’t hesitate in asking for help.  

Stay tuned for our next article in the business pitch series where we talk about “All the things that should go into your final pitch deck”