You have a good business idea and a competent team, but you need capital – how do you find the right investor?
It can be a jungle to find the right investor. The possibilities are numerous, competition is fierce, and it can be a challenge to get in touch with the right investor. Frederik Braad, Inventment Manager at Syddansk Innovation, has described some simple advice that can help you to come in the top of the applicant pile.
1) Start with a prepared pitch deck
Usually, the first screening of your project is quickly and superficially. Always make sure that investors see a well-prepared pitch deck, which typically is a PDF of 10-30 slides with a clear message. The slideshow should present your business idea, explain why it is unique compared to the competitors, what is the market potential as well as your expected earnings. Afterwards, introduce the team and explain how much capital and time you need to implement the plan. A good pitch deck is the golden ticket and will get you pass the door step.
2) Be ready with the follow-up material
Your presentation must convince the investor that you are worth working with. Make sure to be well prepared with follow-up material and have your business plan and budget ready when you meet an investor for the first time. An investor attaches great importance to the team and you must show that you possess the right skills and have the right roles. Most investors prefer a team of 2-4 people. One person is too fragile, and 5 or more is erratic.
3) Carefully select your potential investors
On the internet, you can quickly search for a list of investors. Before you contact an investor, it is a good idea to do some preliminary work – for example, find out what is the ideal investor for you? Are you just looking for capital, or do you seek an investor with advice and experience? It may be valuable to have an investor who has experience in various issues in relation to production, patenting, market strategy, network and know-how.
Also remember to study the investors’ investment profiles. Some invest only in specific industries, and it can vary how early or late in the lifetime of the business the investor enters. You will give the investor a good first impression if you have studied their investment profile in advance.
If your material is well-prepared, you will have a good chance of success. Now you just need to find the right investor that suits you.
Syddansk Innovation invests pre-seed venture capital in innovative business ideas and provides expert advice, experience and network. We develop startups and spin-offs that have the potential to be the next Danish growth companies. We assist from the start-up phase to commercialization and attracting of new investors. We cover the whole country with divisions in Taastrup, Odense and Sønderborg.
If you are interested in having an unformal conversation with us, join Startup Odense Community Meetup which we are hosting on Friday from 15-18 at Videnbyen. We look forward to talk with you!
Is your business idea our next investment? Apply and read more on www.syddanskinnovation.dkAuthor
Frederik Braad is Investment Manager at Syddansk Innovation.
What do you like about Odense?
Odense is the centre of good and young energy and a lot of talented people with good ideas.
What is your best entrepreneurial advice?
Don’t be afraid to tell others about your idea. The chance to get unexpected help like good advice, contacts or suggestions is larger than the risk that somebody would steal your business idea.