I have been working on my start-up for the past 9 months, assessing every aspect on how it will be built from the ground up and how it will operate on a day-to-day basis. I finally feel confident enough to start raising money, but I've been stuck on the prospect of gaining the attention of investors and what information to divulge.
This start-up aims to be disruptive in a very competitive (12-figures) industry, with giant behemoths owning most of the market share. However, I believe that we can initially use untapped markets as a barrier to entry and then penetrate major markets with our existing userbase. The concept is already proven, since there exist many small and middle-sized players in the game, but our approach is broader and offers more engagement for the end-users as well as more revenue in return. Most of our technology will be proprietary (that does not exist yet) and we aim to be profitable since the first year. But in order to do that, we need to raise an initial seed investment of at least $750'000 in convertible debt or SAFE notes.
That is a considerable amount and many VCs will be wary of investing in a first-time founder that doesn't even have a functioning product yet. So I need to craft the perfect pitch in order to maximize the prospect of an investment. I've read a lot on the topic and studied many successful pitches, and the thing that stands out is that I need to connect with the investor/firm by personalizing the pitch. However, I feel that I need to have a strong base where I can start from and then take it from there, depending on the person that is on the receiving side.
What I currently have is short, simple and straight to the point:
-What is it?
Maximum of 3 sentences that conveys the general idea
-How does it work?
How the system is built under the hood, working on an improved version of a currently existing and widely accepted technology.
-Business Model
Our 3 main revenue sources that will be implemented within the MVP.
-Financial Projections
Timeline that details spending, milestones and revenue for the first 24 months.
-Market research / Barrier to entry
How we're going to leverage virtually untapped markets with relatively little to no competition to establish ourselves as the biggest player on this space.
-Special Sauce
What makes us stand apart from the competition and why we're going to disrupt the industry.
I would appreciate any feedback you might have on my current set-up and any advice you might provide for moving forward. Thank you for reading this (quite) lengthy wall of text.
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March 21, 2017 at 04:49AM
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