Raising Money to Fund an Underserved Space
Finding investors willing to fund a new venture is always a challenge, as can be seen by the number of promising startups that fail to launch when their capital runs out. However, that difficulty is compounded when your proposed startup is aimed at an underserved market, where there are few companies delivering solutions to known problems. Underserved spaces can present a great deal of potential for entrepreneurs and investors, but they also come with a higher than usual level of difficulty in turning that potential into success. This doesn’t mean that finding funding will be impossible—it just means that you need to follow three key steps in pitching your company to investors to maximize your chances of finding the right match.
Target the Right Investors
It might be tempting to take a meeting with anyone who’s willing to listen to your ideas, but that isn’t the best way to use your time if you’re serious about getting funding. Investors tend to specialize in certain areas of interest or expertise. If you pitch your idea to someone who has never funded a business in your industry or in your particular niche, you’re not likely to gain much besides some extra practice giving your presentation.
Instead, take some time to do your due diligence on potential investors. Look for people who’ve invested in fields or companies that have similarities to yours, and who tend to invest in companies at the stage of development you need to fund. When you’ve identified likely targets, research them individually to be sure that your pitch is relevant. This increases your likelihood that you’ll meet with a receptive audience—and even if you don’t immediately persuade them to invest, you’ll still be building positive relationships that may be of benefit in the future.
Use Your Skills to Shape Your Approach
Your career skills are naturally going to influence your approach to the problem your company is meant to solve, and you should use them to your advantage in crafting your approach to fundraising. After all, when investors invest in a startup, they aren’t just funding an idea. They are investing in the people behind that idea and expressing their confidence that you have the ability to bring that idea to fruition. Don’t be afraid to let your individuality show in your pitch. After all, your investors will be a big part of the future of your company, and finding the right match will increase your odds of success.
Hone Your Story
Successfully pitching your company means packing a lot of information into a limited amount of time. Potential investors need to know that you understand your market and business model, that your product solves the problem you’ve identified in a unique way, and that you have a detailed plan to take your idea from concept to reality. This is especially important when you’re pioneering solutions in an uncertain market, as investors may need extra reassurance that you’ve considered possible pitfalls ahead of you.
Beyond simply conveying facts, however, your pitch needs to grab your audience with an emotional impact that shows them why they should invest in you. You have to be certain that you deliver a big-picture view of the importance of your idea because that comprehensive understanding is essential for providing a framework for your data and figures and motivating investors to come on board.
A well-crafted animation designed for your target audience can be the key to getting your story across quickly and effectively, in a memorable format that sets your pitch apart. At Squash & Stretch Productions, we create animations that tell your story powerfully, to engage your audience and inspire them to take action. Our expertise can help you sharpen your pitch and your story to make the most of each opportunity. To find out more about how our storytelling and animation services can elevate your pitch strategy, contact us here to schedule a free consultation.