Loading...
Answers
MenuI am developing a web app and wondering how early I can start pitching to investors?
Developing Web app and finished MVP feature -
1. Is it still too early to start pitching investors or no?
2. How can I attract investors?
Answers
It will depend upon your relationship with the investor. If the investor have trust upon you, then you may pitch anytime, however, if you don't know the investor for long, then you have to follow a process.
You may setup a call to discuss more.
Start a Kickstarter project.
This will give you early funding + you'll be able to negotiate far better terms for investor money.
You may even find, running multiple Kickstart projects provides better funding + you keep 100% ownership.
If the investor is a rich uncle who would do anything for you, pitch it today! :) Most people aren't that lucky so they prepare an elevator pitch (Think "Shark Tank") and business plan. Your pitch should describe your vision, the service, the potential value of your business, the amount of money you need and what you're offering early stage investors. Form an advisory committee to help you with your plan and find investors. While you work on your pitch and plan, start thinking about investors who might be interested. For example, investors/managers who understand the space and had success with a similar / related offering would give you a quick dose of reality about your service and your proposition to customers and investors. Angels with related experience and potential customers are good prospects too. One way to appeal to potential investors is with reviews / quotes from potential customers and former managers / owners of related / similar offerings. Test results with testimonials from the user/customer is the best proof. Let me know if you need help with your pitch, plan or start-up.
This is a great question and is often asked around the startup community. At a recent event, the three main ingredients the panelists concluded for fundraising are: 1) have a good story, 2) be prepared and 3) build relationships
You can start talking to investors now to build those relationships. Don't start by pitching to them, start by asking for advice. Be genuine.
A big milestone you want to get to BEFORE actually pitching is having a very tangible dollar amount that you need to get to the next milestone for your business. I call it the "rock-solid plan" when your financials line up with your marketing plans, product roadmap, and hiring plan.
Investors that do believe in you will want to know that the money they give you will get you to milestones like: Early Revenue, Product Market Fit, Cash Flow positive, etc.
Related Questions
-
What metrics are investors looking for in a fashion/clothing/apparel startup?
Team is more important than the startup itself. Investors prefer invest in the Jockey over the Horse. There may be n number of reasons for not getting through the funding rounds. If your startup is able to provide 10x return I can invest straight away. However, I will look at the team first and foremost and then I will look at the management skills and then I will come to other metrics like traction and scalability.DS
-
How do you get exposure on AngelList to attract angel investors?
What of the following things does your startup have? > Founders who have graduated from prestigious universities / previously exited companies to known acquirers / worked for a known companies (with known being a brand-name company such as Google, Amazon, Facebook etc) > Three or more months of statistically meaningful growth (e.g. for easy sake, double digit growth of a number in the thousands) > At least one investor who is active on AngelList (defined in the ideal state by at least one investment in a company who raised their round through AngelList and ideally whose social graph is connected to "high signal" members of the AngelList network) If you have none of these things, then at least, have advisors and referrers who have a strong AngelList profile. And another option is to seek out the AngelList scouts and pitch them directly. They are more open to this than anyone else and I've seen companies with very little traction and very little social proof get featured because a scout believes in the founder and/or the story. Without any or most of the above, it will be difficult to stand out or build relationships via AngelList, in my opinion. I assume now AngelList operates on a concept similar to the LinkedIn "degrees of connection" model, whereby an entrepreneur can now send unsolicited messages to investors so long as there is a degree of connection between the investor and the company. I get a few unsolicited emails a week from companies whose advisers or investors aren't people I follow but that because of the way they determine "connection strength", these unsolicited emails still gain my attention. I assume this is the case for all investors. So the more that you can build your list of advisers and referrers, the more connections you can solicit. That said, AngelList's inbound email system is almost entirely ineffective for "cold" emails to really high-profile investors. Happy to share with you what I think to be your best options for raising profile for your company.TW
-
Pre-seed / seed funding for a community app... valuation and how much to take from investors?
To answer your questions: 1) Mobile companies at your stage usually raise angel funding at a valuation equivalent of $5,000,000 for US based companies and $4,000,000 to $4,500,000 for Canadian companies. 2) The valuation is a function of how much you raise against that valuation. For instance, selling $50,000 at $5,000,000 means you are selling debt that will convert into shares equal to roughly 1% of your company. 3) I would encourage you to check out my other answers that I've recently written that talk in detail about what to raise and when to raise. Given that you've now launched and your launch is "quiet", most seed investors are going to want to see substantial traction before investing. It's best for you to raise this money on a convertible note instead of actually selling equity, especially if you are intending on raising $50,000 - $100,000. Happy to schedule a call with you to provide more specifics and encourage you to read through the answers I've provided re fundraising advice to early-stage companies as well.TW
-
Pitch Decks: What do investors think of comedy in pitch decks?
Instead of calling it "comedy", aim for humor. Humor that supports a key discovery helps to anchor that insight in the investor's mind. I've coached many pitches, and find that when presenters are nervous they try to go for an improvised laugh, thinking it will cut the tension. However, in most situations, it comes off as just that: improvised and cheesy. Which confims to the audience that the presenter is nervous and unsure. Humor an advanced communication skill which requires strategy, planning and practice. The best humor is subtle and smart. The goal is not to get a laugh, but to get a knowing smile.DG
-
Who are some of the pre revenue start up friendly investors available to the Vancouver Canada region?
AngelList is your best bet. Since you're asking the question, chances are you don't have a way to get introduced to these investors. The simple truth (like it or not) is the chances very low that you'll get a deal done without an introduction from someone they trust. AngelList can help with that, so can going to networking events. And finally, If you're the introverted developer type, you can also get their attention by just building something really cool on your own, followed by some serious traction. Arguably the best strategy of them all.DR
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.