5 Funding Pitches - Keys to Getting Investor Interest

Cohoes, NY, November 04, 2012 --(PR.com)-- Last week witnessed 5 entrepreneurs pitch their businesses at a Capital Region Entrepreneurs Group Event (www.capitalregioneg.com) with the goal of ‘hooking’ interest from the attendees which included investors, business owners and local professionals. This pitch session is part of an event series breaking down the fundraising process into actionable steps. The only instructions posited to the fundraisers were "to get interest so that further dialogue is requested” from the potential investors/funders.

This opt-in method of fundraising is central to testing the waters any time In Focus Brands floats new ideas that need capital, new sales campaigns or new market launches. This garnering interest process is an excellent business feedback exercise to edit thoughts and beliefs into results-based actionable information. It will focus ideas and dispel assumptions that may be hurting your chances of success. The investors’ interest and questions provide powerful real-time intelligence to tailor future hooks, gauge acceptance and guide future dialogues.

In Focus Brands' Robert Manasier states: "Even after more than 20 years of fundraising and funding, witnessing these pitch events always remind me of what is important and how hard it is to break habits."

Here are some observations from the event and lessons to improve your pitches, conversation starters and sales hooks.

Don’t forget the first goal is to Build Rapport. People buy from and support people first. Never lose sight that most people you are pitching to have no idea of what a great person you are or all that you have done. Building a dialogue usually starts with a welcoming introduction. It was amazing to witness 5 of the 6 pitches did not even say good morning or introduce themselves. They just started right in to their pitch without any warmth, education or background on what is being discussed. The table was not set but dinner was expected.

You Need Ownership of your Business, Industry Expertise and Market. Why would someone fund your idea if you had to read everything off of a card. Notes are a crutch but you cannot use them. How ridiculous would you look if you had to fish index cards out of your pocket every time and everywhere someone asked you to talk about yourself. Learn your bullet points at least and they can guide you to the important info.

Benefits Sell, Features Do Not. Funding and even buying is predominantly a very emotional decision. We buy because we like the person, we trust the person and then we like the idea, product, etc. Features are dry, benefits allow you to paint the picture, to allow the buyer to add their own value/vision/outcome to the dialogue, thus helping you close.

Practice Always. You can tell by the stops and starts, the losing of places and the disjointed flow of information that most did not practice enough. Winging it is never a good idea but looking like you are winging it (after much practice) is the key. Comfortable deliveries with fluid flow of information is key to getting and to keeping the audiences’ attention. Being comfortable in front of a funding group sells you as a leader and raises your expert status.

Check in with the Audience by asking them if they have any questions before you go on and/or if they are following the information. Another tactic to create connections and to gauge interest.

Funding comes to People and Teams. Demonstrate the people or team you have or want to build with the funding and why. Businesses get funded for many reasons but the decision always hinges on who will execute the great idea. The worst pitches were the ones that spoke only from the “me or I” perspective. Who can finish the launch if you were not around? You better have an answer or a back up plan. This is where a strong business insurance professional can be a great asset with back up planning to protect the investors as much as possible. If you cannot present, having a team member that can is essential.

A producer for IFP Films, Michalina Scorzelli who was at the event, said it best: “What stood out was to be clear on what you are providing and asking for. The biggest lesson was the simplest but most powerful. Passion is the key! If you are not passionate about your idea, why would anybody else be?"

"Coach" Bob Manasier is Managing Partner of Diamond Point Advisory Group in Saratoga Springs. As a multiple entrepreneur with a suite of firms focused on supporting their clients’ needs from finance to branding with start ups a special passion, he brings a networked culture of doing to any discussion. Ideas to Action has been his In Focus Brands’ Way for over a decade.