How to get investors “on the hook”

Your business needs investment. You are out there networking and pitching like crazy but despite your best efforts investors remain elusive. It’s a familiar story. How do you get investors “on the hook”? The Allbright Academy which supports female entrepreneurs, approached Hatty Fawcett, Founder of Focused For Business and an AllBright Academy Ambassador, to ask her advice for finding, approaching and pitching to investors. Here Hatty shares her top tips.

Ten tips for getting investors "on the hook"

Always be ready to pitch

Investors can be almost anyone. When I raised investment for my business my investors included customers, suppliers, professional investors and even people who knew me through a shared hobby. The point is, almost anyone can be an investor, so you need to be ready to pitch at any point.

Approach people you know first – people who see firsthand the hard work you are putting into your business. Why not approach friends, family, employers, suppliers to the business and even your customers. They can help you get an investment round started. It’s a lot easier to attract new investors when you already have your first few on board!

Keep it short and sweet

Professional investors – sometimes called Business Angels – tend to be busy people; it can be difficult to find these people and even harder to get their attention. You will need to have a short pitch (sometimes called an “elevator pitch”) that you can use – in either written or spoken form – to quickly give investors an introduction to your business, giving them enough information to pique their interest.

Get an introduction

It is often easier to get a meeting with a business angel if you have a mutual connection to introduce you. If you have someone in mind that you’d like to approach, use your network (and LinkedIn) to try and find someone that can make that introduction. If you’re not sure who you want to approach, another way of getting started is to reach out to your network explaining what you are doing and asking for any suggestions they have as to potential investors.

Have a short prepared summary

A one-page executive summary of the investment opportunity (not of your business plan) is a key tool in your investor toolkit. Written well, this should give investors the information they need to make a decision as to whether this is an opportunity for them. Whatever you do, don’t send your pitch deck. A pitch deck should be presented and isn’t a standalone introduction to your business, save that for when you actually meet the investor.

All investors are individuals – they have their own particular interests, focus and areas of activity. Professional investors (such as business angels, private offices and equity funds) will often not agree to meet you – or perhaps even to talk to you – until they have seen something of the opportunity first.

 

Arrange a meeting

Don’t expect professional investors to back you after just one conversation. They will need to get to know you and your business. This is best done face-to-face so your initial aim should be to get a meeting or a skype session in the diary.

Follow up every lead

Professional investors are busy people. Don’t assume they will get back to you. You need to take the initiative and keep the conversation alive by following up with them. After every conversation, meeting or pitch, schedule time to follow-up with the people you have spoken to and get their feedback on your investment opportunity. Ask if they have any questions or concerns and – of course – whether they are interested in investing.

Keep the story moving

Professional investors back businesses that are going places, so you need to
demonstrate that your business is evolving and growing every day. When following up with a business angel be ready with a juicy piece of new information that demonstrates your business is continuing to grow. This could be news that you have secured a new contract, delivered a key partnership, or the results of a new marketing campaign.

Don’t take “no” personally

Not everyone you talk to will back your business. Get used to hearing the word “no” and moving on. It’s better to know that someone isn’t interested in your opportunity than to waste time talking to them when they have no intention of investing. Move on!

Ask for feedback

Use every interaction as a chance to learn something. Ask everyone you speak to for feedback – even if they are not interested in investing. Their feedback can improve your understanding of how others perceive your business and can help you adapt your positioning, if necessary. Ask for help from the people you speak to too – who do they know who would be interested in this opportunity? Will they introduce you?

Positivity is key

Raising investment is hard work. It can feel relentless and if you have a run of “nos” it can bruise your confidence. Do what it takes to stay positive and keep your energy up – take an afternoon off and do something you love to boost your morale. Then get back to it, refreshed, revitalised and believing good things come to those who persevere!

*************************

Is your Startup ready to attract investors?

Take the Startup Investment Scorecard to discover if your Startup is ready to attract investors. Start here

Further reading
Why your executive summary is your most important investor document
How to find and win investors
How to create a business valuation that gets your start-up funded

Latest Blog & News

Raising startup funding in a recession

Raising startup funding in a recession

Focused For Business’ founder Hatty Fawcett recently took part of a panel discussing the topic “Raising in a Recession” which had some practical suggestions.
The state of startup investment in 2022

The state of startup investment in 2022

Today VC Firm Atomico launched their State of European Tech Report for 2022 which identifies trends in startup investment. ** Spoiler alert: The key findings make
Hatty Fawcett Adviser of the Year 2022

Start-up funding adviser, Hatty Fawcett, wins Enterprise Nation Adviser of the Year 2022

Over the last few months, start-up founders and small business owners across the UK have been voting for the best and brightest business advisers.
How startup accelerators increase your chances of funding

How startup accelerators increase your chance of funding

While I’ve written before about the benefits of joining startup Accelerators (find out more here), now seems like the perfect time to revisit the
unit metrics that attract startup investors

3 unit metrics that attract startup investors and build a compelling story of growth

Did the conversation with potential investors fizzle out at the financial stage? It’s not just the vision, but the focus on detail that secures
Panel members at How to find and impress investors June 2022

How to find investors, and impress them

Have you ever wondered what it takes to find and impress investors? Well, who better to ask than leading VCs and angels themselves! Earlier
financial-forecast-charting-growth-1200-1

Investing your time where it counts – the numbers

How the right financial forecast is crucial to unlocking startup investment If you’re looking to secure startup investment, it’s inevitable that at some point
Barry Klipp founder of Interlnkd who has raised over £250,000

The travel industry tech startup that went from being grounded to accelerating for take-off having secured over £250K investment

Barry Klipp had spent 17 years working in the airline industry so you might imagine how he felt when the covid pandemic grounded planes
New fund improves access to funding

Every startup deserves equal access to funding

Our partner, Capital Pilot, is removing bias from the funding process to improve access to funding for all Let’s face it, raising equity investment
PEEQUAL founders raise £250,000 for their startup

Funding Accelerator graduate PEEQUAL secures £250,000 equity investment

British Design Fund became PEEQUAL’s largest investor but the reason they provided equity investment might surprise you… Amber Probyn and Hazel McShane, the two
Find-investors-by-Herbi-B-from-pixabay

How to find investors for a startup…quickly!

A recent report from Beauhurst and SFC Capital* reveals that it takes, on average, 15 months to find investors for a startup and close
Should you raise startup funding from family and friends no words

Should you raise startup funding from friends and family?

So you think you need to raise funding for your startup? You may be right, but before you being to raise startup funding from
7-Essentials-that-unlock-startup-equity-investment-600

7 Essentials that unlock Start-up equity investment

Start-up equity investment: Investors look for 7 Essential ingrediants when deciding whether to back a start-up – or not! Be succinct to get attention
Financial savings mechanism. Piggy bank formed by gears and cogs

Traction makes it quicker to raise funding for a startup

So you want to raise funding for a startup? To succeed, you’ll need to speak the language of investors. Investors will ask “how much
7 mistakes that stop you raising investment for your startup no words

7 Mistakes that stop you raising investment for your startup

Startup founders are resourceful and move quickly but sometimes that haste can work against them. They make mistakes. When it comes to raising investment
10 founders no copy

“What’s the best way to fund my business?”: Ten founders give the lowdown on the best way to fund your business

One of the fundamental questions at the front of most founders’ minds – and the most frequently asked question – is “What’s the best
Doors within doors kilarov-zaneit-KjqNGd0sCTQ-unsplash

Why your executive summary is your most important investment document

When seeking investment for your business it pays to think like an investor, giving an investor the information they want rather than telling them

Funding Mastermind Membership Benefits

Keeping you focused on unlocking investment Funding Mastermind brings together founders who are actively negotiating and closing a funding round, providing you with tools,