3 Investor Questions you should be ready to answer in your pitch deck04 Jan 2016
As the founder of an early stage startup, you should always keep sharpening your pitching skills. You might need angel or seed funding now or sometime in the near future. There are certain questions that you should definitely be able to answer in your pitch, as investors will ask them in one way or another. In this article, we’ll tell you the three key questions that you should perfect the answers to, so as to maximize your startup’s chances to a successful pitch.
- Are your customer numbers growing?
If you are going to build a successful business, your customer base must be growing. One of the indications of success to investors will be the number of customers and whether they are growing. You will need to show graphically and with as few words as possible how your growth has been so far.
- What are your cohorts?
The term “cohort” refers to specific characteristics shared by a group of consumers. Cohorts are used to target segments of the market that, although they may fit into other models, are more effectively grouped and treated as one. You need to be able to show investors that your cohorts are showing repeat behaviour. This is because acquiring new customers is more expensive than getting existing customers to buy from you again. If you are able to show that your existing customer base is growing and also resulting in repeat sales, investors know that you already have a successful sales channel. Have analytics in place to monitor customer behaviour and have the data to use for your pitch deck.
- Do you think your business will scale/is scalable?
Venture capitalists are not interested in paltry returns. They are in the business to make big money. You have to be able to show that you can scale massively and have an approximate number, that is your five-year goal. If investors are not convinced then your startup is not a good candidate for venture funding.
- Do you have a business plan?
You have to convince the investor that you have a plan for what your goals are and how you will achieve those. Read our guide to draft the perfect business plan here. Also know the amount you want to raise and have a year-on-year projection plan for how you are going to utilize that money.
Here’s how you can get your startup funded by venture factory. Always keep your materials ready to answer these questions, just in case the venture capitalists come knocking. They won’t come knocking; you will have to approach them, so it’s best to be fully prepared.