Most first-time startups pitch their product to the investor rather than their business.

They often spend a great deal of time on how the product works.

Investors want to know how the business will be successful, not how the product works.

Shift the focus on the product from how it works to how it enables business success.

Describe how the business will create the product at a reasonable cost.

Show how customers will discover it and what steps the business will take to make them successful with it.

Discuss how the product impacts the customer, such as saving them time, money, or effort.

Show the monetization model and how customers will pay for it.

Show why the customer will continue using it over time.

All of these elements point to a successful business.

Focusing on how the product works misses the point the investor seeks.

Instead, show how the business will be successful.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.