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How to get funding for your business | Mistakes to avoid while pitching an investor | Investing according to Evan Carmichael & Alicia Syrett

Published by The African Boss on

Most businesses need funding to grow or scale. But the majority of entrepreneurs seeking money often get rejected by investors. In this article, we will use two investors’ perspective on seeking investments to help you learn what to avoid during your next pitch to investors.

Here are the 3 major things investors look for in a winning business plan according to Evan Carmichael:

  • Short, Concise, Clear and Easy to understand Executive Summary
  • Strong and Experienced Leadership and Management Team and/or Board of Advisors
  • Solid NUMBERS – Detailed Financials and Projections that get investors excited
The 3 Most Important Things Investors Look For in a Winning Business Plan
Evan Carmichael explains the 3 most important things investors look for in a winning business plan

And here are the main tips to remember before or during your next investor meeting according to Alicia Syrett:

Rookie Mistakes

  • Do your homework – Don’t pitch investors without researching them first
  • Introductions and in-person networking trump cold calls and cold emails
  • Timing of the pitch is important

Your character matters

  • Don’t be sketchy offline or online
  • Don’t overpromise
  • Show that you will use the money for the growth of the company and not for your salary or other reasons

Investor-Entrepreneur Fit matters

  • Articulate how they can help you beyond just the money
  • Adjust your pitch over time to fit the specific investor
  • Get them excited to work with you and create FOMO (fear of missing out) if they don’t

Business Fundamentals

  • Don’t focus on small or highly competitive markets
  • A good business to invest in is one that can’t be easily replicated by your competition
  • Show some momentum on the execution of the idea – initial customers, initial partnerships, initial capital, etc
  • Know your numbers – revenues, growth margin, metrics, profitability – they have to be compelling and core to your story
Why VCs and Angel Investors Say "No" to entrepreneurs | Alicia Syrett | TEDxFultonStreet
Alicia Syrett, CEO of Pantegrion Capital, frequent on-air personality on MSNBC and CNBC, shares the most common blunders that get startups rejected. Founder/CEO of Pantegrion Capital and The Point 25 Initiative. CNBC Power Pitch and MSNBC Your Business Regular. Contributor for Inc. Instructor at Columbia University. Board of the NY Tech Alliance

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Please share in the comments any insights you have on this article. What is your business and when do you plan to get funding? If you are an investor, what are your thoughts on investing? Share below

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