Raising money is hard and communication is an incredibly important factor. Even if you have a great startup and team, if you don’t communicate effectively and efficiently, there is a good chance to miss out on good investors/advisors.
Communication is the most important thing when you want to raise money from angel investors. By communicating very well in writing and conversation you can: get through the screening process by attracting the interest of the decision makers, earn the opportunity to pitch to potential investors and achieve your goal of attracting smart money to help you to achieve success.
Below are the steps that we recommend you to follow in order to have the best result possible when communicating with T.A.N.
Too many founders think “I bet I have more chances of a funding discussion if I approach the T.A.N. board directly on LinkedIn” or “I’ll just send one of them an email with all of our info”.
If you approach us on Linkedin, you will be redirected to apply on the site. Same thing if you send us an email, and there is the chance for it to get lost in Junk or Spam.
Either way, none of the above actions will get you closer to your objective. At the beginning we only need the info that you will enter into the Startups application form. In addition, using the site ensures that we’ll contact you and potentially have a follow-up discussion.
A well made pitch deck is all that we need from you at the start. We don’t need youtube videos, financial excel spreadsheets nor mockups of how your solution works.
At this stage a good pitch deck helps us to understand what your startup is about. Answering questions like: what problem do you solve, how do you solve it, how big is the market for solving it, who are your teammates and what are their roles, do you have a prototype/MVP/proof of concept/pilot, do you have clients and where, exactly, is your project at in it’s development stage.
Don’t use a technical language to try to impress, use straightforward language, concepts and ideas.
There is no perfect way of how a pitch deck should be structured. The best pitch decks are the ones where investors understand almost everything about the startup, just by reading the slides.
Make it as professional as you can; spelling, grammar and visual presentation are all important. This is your calling card and people’s first impression of you and your project. It’s the document that investors will share among themselves. Few will remember all of the details of your presentation; the deck will remind them. If an investor thinks your startup will be interesting for another investor, then they can share your pitch deck.
Below are some key points to include when creating your deck:
state the problem you are solving and the pain it causes
make the audience understand the problems and pain of your clients
be direct and to the point
you must clearly know who are your your target customers
explain how you will validate your solution with them
pick 3-4 competitors and tell us what are your advantages
explain clearly how are you going to make money
explain how you will reach customers
explain how you will sell to them
include pricing models
TAM, SAM, SOM
be specific about these amounts and do not exaggerate
include the source of your info
do you already have clients and revenue?
do you have any established partnerships or sales channels?
have you done any pilots or proof of concepts (paid or unpaid)?
show important milestones in your evolution until now
what are your plans for next milestones the immediate and near future
Go to market strategy
clearly explain how you plan to enter your chosen market
clearly explain how you will find, sell to and retain clients
do you know your CCA (cost of client acquisition)?
do you know the LTV (lifetime value) of your clients?
show your faces and list your expertises
tell us why each member of your team is the best person for this opportunity
explain each person’s role and responsibility
remember that angels investors will invest in the team’s expertise, experience, knowledge, passion, dedication and commitment
show your advisors, if you have them ( you should have at least 1 or 2)
if you need advisors in specific areas then ask for them
how much money are you asking for?
what valuation are you raising funds?
how much equity do you offer in exchange for investment?
have a clear Use of Funds schedule for the amount you are raising
be prepared to show exactly how your solution works
if you still have time during a pitch then do a short demo
if there is no time then we suggest that you invite investors to another meeting to show them your demo and get more time with them
Thank you page
always thank people for their time and interest
include here your contact info
+ 2 extra slides with info you know investors need more clarity
be certain that there is a specific topic you think needs more detailed explanations
only with important info you KNOW investors NEED
If you expect some questions regarding a certain topic, prepare a slide with answers to that topic