Investor Pitching During Covid-19
Before we get into pandemic specific advice, there are some things that you should always arm yourself with before stepping into the investors’ den.
Know your numbers - from burn rate to customer acquisition costs, profit margins to the cost of goods, you need to know these numbers inside out to give a good impression to investors.
Stay true to your brand - Your business is unique because you created it, so don’t let your brand’s key message be lost when trying to impress investors. Be yourself and portray your brand in the way you built it to do, don’t try to change things for the sake of investors.
Be prepared for pressure - investors want to know that you can handle pressure, and answering tricky, on the spot questions is a good way to see that. Just remember you know your business, answer honestly, and don’t make false promises.
How’s Covid-19 changed investor pitching?
2020 has made everything more complicated, and unfortunately, investor pitching is no exception. The main thing is that it’s increased in competitiveness, with supply & demand changing considerably. With less money being invested overall by venture capital firms, private investors, and angel investors, there is a real need for companies seeking investment to provide more assurances and proof that their business operates successfully even in turbulent times.
So, what do you need to include to ensure your pitch is pandemic proof?
Show your adaptability
If the pandemic has demonstrated anything, it’s a need for adaptability in businesses. If you’re seeking funding, we imagine that’s because you’ve been doing this week - congratulations! You need to make sure your potential investor sees it that way too.
Don’t shy away from talking about the challenges Covid-19 has brought your way. In fact, use them to demonstrate how great your business is. For each challenge, go through how you addressed and overcame it.
If 2020 has proved anything, it’s that things change. We went from coffee-shop meetings and family gatherings to total lockdown in just a matter of days, so you need to make sure you budget for the good times and the bad. Demonstrate how you can conserve cash in your business, and how you’ll nurture it back through the slow economic recovery that we’re set to face.
Don’t shy away from details
Be specific in your marketing plan. Investors want to see how you’re hoping to attract new customers in periods of economic uncertainty, and how you plan to retain them as well.
Be open to input
With times being...well...as they are, investors may expect to be keener for communication regarding your processes in order to protect their investment, so it’s important to express that you’re open to this.
Show your team’s strength
Your business is resilient because of your team. If you can, demonstrate the positive work culture your company has forged. Character helps investors to understand the people behind your brand.
We’re Accountancy Cloud
At Accountancy Cloud, we’re dedicated to helping businesses turn financial chaos into clarity, providing plans that fit your business’ unique needs. We’re ideal for growing businesses, as we adapt and grow with you. Get in touch today, to learn more.