Educate Your Investors: Effective Ways to Secure Business Funding

Educate Your Investors Effective Ways to Secure Business FundingSecuring the nod of potential investors such as angel investors or venture capitalists is not an easy job. Most of the time, they have the money but they are not familiar with the industry that your working for. Prior to pitching your startup, it is important that you have some idea on how you will respond to the queries of your potential investors.

Be ready to answer questions such as: What is the scope of your industry? Why should I invest in your company? How much will I get when I fund your business? What is your edge over other companies?

Being prepared to answer such questions will greatly improve your chances of securing business funding. The key is simply to make the investors understand your industry and where you are coming from. If you do that, there is no doubt that you will be able to get the venture capital that you really need.

Aside from being able to respond to the questions thrown at you, you should also try to observe the following tips on how to effectively educate your potential investors about your industry:

1. Explain your industry in a familiar manner – It is important that your potential investor understands your industry. And you can only do that by explaining it to him or her using a familiar context. For instance, if your industry is something that concerns e-commerce, then you might want to explain it by using a relatively known concept such as trade or marketing.

2. Avoid jargons – When talking about a concept that we are knowledgeable of, it’s very common for us to end up using jargon or technical terms that only those who know the concept understand. Avoid this when talking with a potential investor. Keep in mind that your goal is to educate them and not to badger them with terms that they do not comprehend.

3. Know what you’re talking about – People will notice when you’re just muttering things that you really don’t understand. Don’t embarrass yourself in front of your potential funders. Know everything that you need to know.

4. Understand the needs of your potential investors – Before you start talking, try to think of the things that your potential investors need to hear. If it’s just the first meeting, don’t bother them with very technical information and instead focus on aspects that will pique their interests.




More detailed information and useful advice can be found at Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our