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Why Pitching Your Product Is Not Enough For Investors

Startup Professionals Musings

Here are the unique business elements that I expect to hear as a potential investor: Target market size and growth projections. Most investors won’t be interested unless you can show them a large market (billion-dollar opportunity), with a double-digit growth rate. First to market” is not sustainable with normal startup resources.

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These 10 Key Elements Make a Business Plan Fundable

Startup Professionals Musings

Industry & market sizing. Start with the evolution of the overall industry, market segmentation, market dynamics, and customer landscape. Data from accredited market research groups like Forrester or Gartner is required for credibility. Avoid any statements like “All we have to do is get 1% of the market.”

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5 Clues To Investor-Friendly Financial Estimates

Startup Professionals Musings

The only path to any return for equity investments is a liquidity event, like a merger or acquisition (M&A), or IPO. That’s why investors want to hear about your exit strategy. Build a path to 10x return. If you don’t have one, or intend to buy out investors with their own money, you probably won’t get much interest.

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Investors Expect Ten Essentials in a Business Plan

Startup Professionals Musings

Industry & market sizing. Start with the evolution of the overall industry, market segmentation, market dynamics, and customer landscape. Data from accredited market research groups like Forrester or Gartner is required for credibility. Avoid any statements like “All we have to do is get 1% of the market.”

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Respect Competitors and Capitalize on Your Strengths

Startup Professionals Musings

They don’t realize that knocking competitors is assessed as a weakness and denying that you have any competition suggests there is no market for your solution. Position your solution as broadening the market, not killing a competitor. Quantify your value over current market alternatives.

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8 Ways An Investor Pitch Differs From A Product Pitch

Startup Professionals Musings

Here are the motivation elements that investors expect to hear: Size and growth potential of the market opportunity. Your customers don’t care if you are targeting a billion-dollar market and growing at double-digit rates, but investors will skip small or shrinking opportunities. First to market” is not sustainable by a startup.

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10 Answers That Make Your Startup Plan Investable

Startup Professionals Musings

Investors are looking for a concise description of your product or service without technical jargon or fuzzy marketing terms with value quantified in customer terms. How big and growing is the total market and your target segment? They like billion-dollar markets with double-digit growth rates.