You’ve reached the point where your new startup has validated your business model with a Minimum Viable Product (MVP) and you are all set to raise an Angel round to become one of the hot new startups in India. Congratulations! The best startup advice possible is the Elevator Pitch. As cash starts to disappear, you realise that you need an Angel who is willing to help you expand, as well as pay the bills. That’s how Startup India now works, and so the Elevator pitch is super important.
One of the things which hot startups in India can demonstrate to a busy investor is the art of getting an elevator pitch to whet her appetite in less than 60 seconds, so that she wants to know more. Sometimes, it can feel really daunting, and the last thing you want a prospective investor to think, it’s this:
This is really important, as it finally allows your startup to get initial interest from perhaps 20 people, who will then be whittled down to perhaps one or two who will commit to investing. It is the beginning of the sales funnel for raising investment.
So, how does one give the perfect elevator pitch? MarketFinance will show you how!
1. Identify the pain point, and not what your product does –
hopefully, the pain point is something your investor identifies with, and if not, always back it up by some data to show that it is indeed a pain point.
Traffic in India is insane. Every hour wasted on the road means more hours in the office and billions of rupees lost in productivity.
2. Establish credibility –
Make sure that you or your team has some experience in the sector your startup is in.
After ten years of being a dentist, I realised that clients were wasting practically half a day to come to my clinic to perform routine treatments, and also wasted time for more complex treatments which were higher margin services.
3. State how your startup solves the pain point –
Investors want to know how you are creating new value or are moving value along the value chain, one of the most important areas for them, because value equates to profit in the long run. Show how your startup does this, and how the MVP succeeded in validating the hypothesis. Again, data is really required.
I decided to offer a service to clients where my staff would travel to offices and perform routine treatments for corporate staff, at lower prices, due to scale. We have done incredibly well, having had 500 corporates sign up in less than 3 months. In addition, I have more time for more complex operations, so my clinic’s profitability has doubled.
4. Explain what you need and why –
The Ask! After having amazed your prospective investor, you have to get in there and start the ball rolling about what you need and why. Do not be shy about asking, you’ve earned the right, especially if you are to become one of the hot startups in India. Also, if you don’t ask, you don’t get.
I now need 1 Crore to hire the right staff and expand to other cities, in order to scale. I believe that this will bring down the costs of treatment further, and through the right marketing efforts, will also increase demand significantly. With time, the exit for you would possibly be an IPO.
Remember, an elevator pitch is all about creating interest so that an investor wants to know more. Do not bore them, and take more time than you should, as it will almost certainly work against you. Be sure to follow these 4 points above, and you will be well on your way to getting further traction with potential investors!
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