So, you've decided to launch a progressive business project. The first thing you need to make your dream come true is to find an investor.
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A startup is not only inspiration, but also serious work, so to turn an idea into a successful business, you need money. And here pitching comes to the rescue – one of the most effective ways to attract investment. How to turn your idea into a successful business? Ruslan Timofeev, an investment expert, shared his experience and gave practical advice for those starting out in business.
Expert profile
Ruslan Sergeevich Timofeev is an experienced entrepreneur with many years of experience in the investment field. He is the founder and managing partner of several successful projects, including the Adventures Lab venture fund and the CLUST venture builder, which specializes in developing Ukrainian IT startups.
What is pitching and why is it needed?
Pitching is a presentation of a business idea to potential investors, allowing startups to attract the necessary resources for growth. However, this is not just a demonstration of an idea, but a tool for solving key business problems: attracting investments, finding partners and participating in competitions. Ruslan Timofeev shared valuable advice that will help young entrepreneurs effectively present their project and achieve their goals.
Find out what projects the investor works with
First, check what projects are in your potential investor's portfolio. Who is their main client base – fintech, e-commerce or energy companies? Even within the same niche, the specialization of investment funds and venture builders may differ. For example, not all companies are ready to cooperate with crypto projects due to the complexity of legalization. And vice versa: players in the innovation field can only consider startups with advanced technologies – in particular, AI.
Pay attention to the stages of the project development at which the company is ready to provide support. For example, CLUST offers comprehensive support from scratch, while many investment funds focus on more mature projects.
Think through the structure of the presentation
Ruslan Timofeev recommends focusing on the practical side of the presentation. Of course, intrigue is important, but the main thing is that investors should understand whether the project is capable of generating profit.
First, explain the essence of the startup, what problem it addresses and justify how your product should solve it. Next, describe the technologies and functions used in production or service. Tell about the business model, marketing strategy and competitor analysis. Don't forget to list the specialists your team consists of. Finally, demonstrate the financial model and announce the amount of expected investment.
Don't overload your presentation with unnecessary details – you should spend up to 20 minutes on average. But don't hide the risks associated with the startup: investors value honesty and transparency.
Tell us about the advantages of your startup over competitors
The originality of the product is directly related to competitiveness. Emphasize how your company differs from other players in the market and what advantages you offer to consumers and investors.
The enthusiasm of the startup founders for the project is not just a plus, but often a determining factor when making a decision by an investor. Ruslan Timofeev spoke about his own experience with the ReFace company, which at the time of the pitching did not even have a mobile application and presented only GIF images. But Timofeev was convinced by the flexibility of the founders, who were betting not only on the development of the application in the future, but also on the development of the technology.
Explain how you work in war conditions
The war has created new rules of the game in the market. Foreign investors are looking for companies that can not only survive, but also gain a competitive advantage. Ruslan Timofeev emphasizes that your ability to adapt to changing circumstances and continue to provide value to customers is a sign of your flexibility and innovative approach.
Take into account the vision and questions of investors
The market is constantly changing, so businesses must adapt to new conditions. Investors usually have a broad vision of the market and can offer valuable insights. Therefore, it is important to be prepared for the fact that your strategy may change in the process. Ruslan Timofeev notes that investor questions during pitching are not necessarily criticism. It can also be a sign of interest from a potential partner and a desire to learn more about the project for further cooperation.
Rejection is the path to improvement
An investor's refusal usually means that the project needs to be revised to meet market requirements. Ask the fund or builder for feedback: this information will help adapt the business model and increase the chances of attracting investment in the future.
The main thing is not to stop there, but to learn from your mistakes. Ruslan Timofeev emphasizes that pitching is the first step to scaling a business. It is at this stage that you can attract resources and create the necessary connections to grow your company.