By Angela Baker
Developing a new business is always a challenge, no matter how experienced you may be.
Likewise, securing funds for such an endeavor may be difficult since many angel investors and financiers are apprehensive about backing startup business ideas.
According to Fortunly, those worries are justified, as only 50% of businesses with employees survive their first five years on the market.
In addition, 42% of startups fail because they offer products or services that their market simply doesn’t need, making originality and outside-the-box thinking a necessity.
The Science behind a Tech Pitch to Attract Investors
So how do you go about convincing B2B stakeholders, investors, and potential backers of your startup idea’s validity? Let’s take a look at how writing a winning tech startup pitch can help you achieve just that.
Why Startup Pitching Matters
Pitching your startup to would-be backers is an important part of its development process for numerous reasons.
While you may be confident in your tech startup idea at first, receiving feedback and comments from experienced financiers is always welcome. According to Tech Jury, 63% of IT industry startups have failed in 2018 due to market saturation and lack of original products/services on offer.
Despite that, 83% of successful startup owners express that they have the right level of experience and qualifications to run their companies adequately.
For better or worse, thinking like a passionate programmer or IT nerd won’t be enough to elevate your startup – a business mindset is highly recommended.
This is what makes pitching essential, as it will make you reevaluate, question and present your idea in an objective and cohesive manner to others. Thus, several important outcomes can come out of startup pitching, including:
- Practical development of public presentation and sales skills
- Better understanding of your startup idea and its strengths/weaknesses
- Possibility for further pitch refinement and discovery of new ideas
- Attract the attention of likeminded developers and companies
- Finally, securing the funds for your startup’s development
Writing a Winning Tech Startup Pitch
Present an Objective Problem
When it comes to startup pitch writing, it’s best to assume that your investors are not tech-savvy. For better or worse, many investors are there for-profit and will rarely be tech-aficionados themselves.
This makes practical, approachable, and conversational writing essential for successful pitching.
In order to make your case understandable to everyone in the room, it’s best to start with a relevant industry issue you aim to solve.
For example, HR managers have a hard time effectively vetting dozens of candidates every day and would benefit from a tech-based solution.
Or, the IoT market may be missing an innovative new tool which would make home security systems centralized and controllable from a single hub.
One of these small yet significant issues lies at the center of your tech startup – write about the problem and present it to your investors.
Introduce a Unique Solution
How do you aim to solve the aforementioned issue? Do you intend to develop a physical, programmable gadget and sell it to B2C stakeholders? Or do you want to create a SAAS online platform and outsource certain services to clients in need? The solution you present to investors needs to tie into the problem as closely as possible.
Its role is to assure investors that you have an idea of how to address a real problem that people are willing to pay for.
You can use this opportunity to address any competitive brands which offer similar solutions yet are inadequate for the problem you’ve previously outlined.
As we’ve mentioned previously, tech-based startups need to be innovative in order to ensure their long-term success on the market – be original, not iterative.
Back the Claims with Data
Given that you are asking real-world investors for real-world resources to kick-start your startup, make sure that all your claims are backed up with data.
Industry research, testimonials of established professionals, as well as user-generated content which proves your point about an existing problem can serve those efforts.
Don’t simply make claims about “client dissatisfaction” and offer no tangible, empiric data to back it up.
Using trustworthy sources for your startup pitch writing will further elevate its professional appeal and authenticity, bringing you closer to securing the funds you need.
Outline the Target Audience
Once you’ve presented your problem/solution pitch, it’s time to talk about who the product is intended for.
Depending on the application, complexity, and dependence of your product on other technologies (smartphones, different OSs, etc.), it may not be for everyone.
IT experts and developers like to have higher functions available in the tools they use, while casual, B2C customers might want a more approachable product. Talk to your development team and establish who the intended audience for your product is before talking to investors.
Draft a Development Timeline
Assuming that you secure your funds during the current startup pitch, how long will the development cycle last? Most importantly, when will your product be fully prepared for public launch and monetization? Do you intend to charge a one-time fee for your product or to sell monthly/yearly licenses to clients?
As we’ve discussed, being passionate about the tech industry won’t be enough to win over investors – you need to “sell” your ideas effectively.
Establish a timeline of development with as many milestones and details as possible.
You don’t have to uphold those milestones to the letter, but you need an idea of the production scale and present it to investors.
Talk about your Startup Team
Ambitious tech startups require people of various skills and backgrounds to join together for a common cause. I
n order to appear as professional as possible, you should include a brief outline of your coworkers to appease curious investors.
While you don’t have to bring your entire team to the pitch meeting, you can use the opportunity to address them and their skillsets.
The team you assemble for startup development will speak volumes of your commitment to the project and encourage investors to back your ideas.
Prototype the Final Product
While not necessary for the startup pitch, bringing a prototype of your final product to the meeting will solidify your idea in the investors’ eyes.
Develop a prototype with basic functionality that will communicate the idea of your startup to interested parties.
Angela Baker is a Writer, Editor, and Business Writing Specialist with keen interest in coursework writing and digital marketing content creation.
Her career path is centered on research and writing of different types of content, including case studies and contributions to top dissertation writing services respectively.
Angela is highly motivated to develop her skills in digital marketing, business development, and content creation in order to build her credibility as a writer.
In her spare time, Angela enjoys casual afternoon walks and online shopping.
Edited by Patrick O’Brien
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