A recent Angel Investment Network webinar heard from investment experts Dan Kirby from Founders Are Mental and Tom Moore from Tucker Capital on how to get funded faster with less time-wasting and pain.
One of the key take outs was that investors aren’t just looking for a promising product or service – they’re looking for the right leader. Your “unfair advantage” is that unique combination of skills, experience, or background that makes you the perfect person to spearhead your startup’s mission.
Founders looking for funding were encouraged to consider these aspects:
- Domain Expertise: Do you have a deep understanding of the industry your startup operates in? Perhaps you’ve held leadership positions in relevant companies or possess specialised technical knowledge.
- Proven Track Record: Can you demonstrate a history of success in similar ventures? Have you overcome significant challenges in the past?
- Network and Relationships: Do you have a strong network of contacts or established partnerships that can benefit your startup?
By highlighting your “unfair advantage,” you showcase not just the what (your product/service) but also the who (the exceptional leader behind it).
The Jab-Hook-Jab: A Framework for Engaging Investors
The speakers also revealed a powerful method for structuring your initial conversation with an investor:
- Jab: Instead of diving headfirst into your pitch, begin by asking the investor questions. What are their areas of interest? What kind of companies do they typically invest in? This demonstrates your genuine interest in them and fosters a more collaborative atmosphere.
- Hook: After establishing rapport, deliver a concise introduction of yourself and your company. Highlight your “unfair advantage” and how it translates into a valuable product or service. Keep it brief and focus on sparking the investor’s curiosity.
- Jab: Conclude with another question. Ask about their initial impressions or what additional information they might need to assess your venture. This gauges their level of interest and allows you to tailor your follow-up communication.
By utilising the “jab-hook-jab” method, you avoid the one-sided pitch and engage the investor in a meaningful dialogue.
Qualifying Investors: Finding the Right Fit
Another key take out was to remember that not all investors are created equal. While securing funding is important, it’s equally crucial to find investors who align with your company’s long-term goals and vision.
Focus on building relationships with investors who can provide more than just capital. Look for individuals who can offer valuable mentorship, industry connections, or strategic guidance.
Be wary of “energy vampires” – investors who ask irrelevant questions, waste your time, or offer no real value. Don’t be afraid to walk away from a potential partnership that doesn’t feel like a good fit.
By following these strategies, you can approach fundraising with a newfound confidence and purpose. Remember, you’re not just seeking money – you’re searching for the ideal partners to propel your startup towards success.
Join us for our next partner workship, together with our hosting partners Vestd and friends from Bethnal Green Ventures, as we delve into the world of investments. Gain valuable insights into investment rounds, fundraising techniques, and the key criteria investors consider.
Date: 6th June
Time: 12pm GMT + 1/ 7am EST
Register now: https://lnkd.in/ewat6CJj
