Communicating your story: How to get investors’ interest when raising capital

- December 1, 2021 3 MIN READ

You’ve got a great idea and have planted the seeds of a business you believe will grow if watered by the right investors. But you don’t know where to look for that key capital that will help you flourish, writes Ben Lipschitz cofounder of FoodByUs.

Who are you? You’re a founder with passion and drive, and you’re looking to raise capital in order to take your next steps. If I’m speaking directly to you – or even if you’re further along your journey – let me share with you some key steps from my own funding map that may guide you to a key investor.

5 tips for attracting investors and raising capital

Know your story

Preparing and delivering a pitch for investors can be intimidating. Sometimes if you’re a founder, you might find your enthusiasm for your own bright idea outpaces your pitch audience’s understanding of who you are and where your idea comes from.

It is always best to tell your idea in the form of a narrative: who are you and what’s your story. Go back to the very start: what problem are you solving? In a few of FoodByUs’ early pitches we launched straight into our solution, at times leaving our investors without a full understanding of the challenges faced by the industry, asking “Wait… You’re telling us restaurants still use SMS and fax to order supplies?!”. Take a step back and introduce the story of your business, the reason you exist and the problem you’re solving to create a picture of what’s come before, and what lies ahead.

Create a focal point for investors

While it’s important you take your audience on a journey and articulate your vision, it’s vital to ensure you reveal your key information, data and talking points clearly and succinctly. Iterate quickly – if your audience is dropping off, cut the excess and drive home your most valuable information.

You want to engage, impress and secure that second meeting. Your first pitch isn’t responsible for selling your solution on the spot, but rather securing a secondary meeting and future dialogues. 

Know your data – and how to share it with investors

When pitching your story, make sure you include data that is clear, understandable and succinct. Same as with your narrative, you need to get to the point clearly and quickly: what’s your key data, what’s your wow figure?

You’ll also need to know your data back to front so you can be responsive, demonstrate confidence and clarity, and apply it to various scenarios. During the raise process different investors will want to look at the data in different ways. Ensure you have your information ready and waiting in various forms and formats to show your investors that you’re comprehensive and can easily get on the same page they’re on (or ideally, already are).

Careful consideration is key

Deciding who to approach, what to ask for, and what to accept are crucial decisions that will shape the future of your business. It’s serious stuff that you and your team need to put considered time and thought toward.

Plan your pitch, presentation and meetings well in advance. Don’t leave things to the last minute, don’t rely on off-the-cuff – no matter how good you think your presentation skills might be. Detail, precision and careful planning are key to a strong approach and presentation.

Getting your first funding offer is a giddy moment – but deciding what investment offers to accept requires the same careful consideration you put in to your pitches. The investors you choose to work with will inevitably shape your business for years to come. Our recent Series A was led by Macquarie Capital who have been with us since inception and have played an integral role in our growth across investment and strategy.

Try, try again

You may not nail your first shot. That’s a lesson you may learn time and again as a founder – I certainly have. While our recent Series A success saw FoodByUs secure AU$10million in funding, there was a lot of practice and lessons to be learned along the way.

The mark of true success is not instant reward, but rather your demonstrated ability to work hard, refine, and learn from mistakes.

Your investors will appreciate your resilience – and so will your business, for years to come.

Now read this

Our inaugural INNOV8RS winner announced

KBB Sales and Marketing Workshop