{"id":36811,"date":"2023-10-20T14:46:21","date_gmt":"2023-10-20T14:46:21","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/six-tips-for-pitching-to-investors-from-a-startup-founder-that-just-scored-more-than-300000-startupsmart\/"},"modified":"2023-10-20T14:46:21","modified_gmt":"2023-10-20T14:46:21","slug":"six-tips-for-pitching-to-investors-from-a-startup-founder-that-just-scored-more-than-300000-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/six-tips-for-pitching-to-investors-from-a-startup-founder-that-just-scored-more-than-300000-startupsmart\/","title":{"rendered":"Six tips for pitching to investors from a startup founder that just scored more than $300,000 – StartupSmart"},"content":{"rendered":"
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Founders need to excite investors and show they can take them on a memorable journey to secure funding, Grapple founder Christopher O\u2019Halloran says.<\/p>\n
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The Brisbane startup, offering a tool to help business managers<\/a> automate project documentation, has just secured a seed round of $315,000 from angel investors in Brisbane, Melbourne and Hong Kong.<\/p>\n \u00a0<\/p>\n \u201cThey\u2019re doing it for a bit of excitement,\u201d O\u2019Halloran tells StartupSmart. <\/i><\/p>\n \u00a0<\/p>\n \u201cIt opens up a bigger network in the second round.\u201d<\/p>\n \u00a0<\/p>\n Their main goal now is to bring Grapple closer to its real vision by executing key marketing and business development aims.<\/p>\n \u00a0<\/p>\n They also plan to approach more investors in Asia and the US.<\/p>\n \u00a0<\/p>\n \u201cThey\u2019re a tough market to crack for Australian startups,\u201d O\u2019Halloran says.<\/p>\n \u00a0<\/p>\n The journey to securing funding has been a long learning curve so O\u2019Halloran shares a bit of advice for fellow startups raising capital.<\/p>\n \u00a0<\/p>\n 1. Be proactive <\/b><\/p>\n <\/b><\/p>\n \u00a0<\/p>\n O\u2019Halloran says securing their first major round of investment came from being proactive.<\/p>\n \u00a0<\/p>\n \u201cWe pitched at every event we could,\u201d he says.<\/p>\n \u00a0<\/p>\n When pitching recently to Brisbane Angels, many were familiar faces from RiverPitch<\/a> where they presented back in 2014.<\/p>\n \u00a0<\/p>\n 2. Network with investors <\/b><\/p>\n \u00a0<\/p>\n \u201cInvestors can put you in touch with other investors,\u201d he says.<\/p>\n \u00a0<\/p>\n Actively meeting and connecting within the industry led to a chance meeting with a Hong Kong investor in Indonesia.<\/p>\n \u00a0<\/p>\n Because of pitch practice, O\u2019Halloran was well prepared to sell Grapple.<\/p>\n \u00a0<\/p>\n \u201cI gave him a three minute pitch and he basically invested on the spot,\u201d he says.<\/p>\n \u00a0<\/p>\n 3. Think about what each investor will ask <\/b><\/p>\n \u00a0<\/p>\n \u201cEvery investor has their own questions,\u201d O\u2019Halloran says.<\/p>\n \u00a0<\/p>\n If your investor is familiar with your industry, they\u2019ll want to see how your idea can work for them, he says.<\/p>\n \u00a0<\/p>\n Their Hong Kong investor, an events company, was able to clearly see the problem Grapple was solving.<\/p>\n \u00a0<\/p>\n \u201cHe knew first-hand the pain of good project documentation,\u201d he says.<\/p>\n \u00a0<\/p>\n With investor events, O\u2019Halloran says questions were focused on whether they could deliver on their promises and sell their idea.<\/p>\n \u00a0<\/p>\n \u201cWe proved we could by bringing on key customers in our beta program,\u201d he says.<\/p>\n \u00a0<\/p>\n Getting a realistic valuation<\/a> was also critical.<\/p>\n \u00a0<\/p>\n 4. Show progression at every pitch <\/b><\/p>\n \u00a0<\/p>\n O\u2019Halloran says they pitched to Brisbane investors three times before success.<\/p>\n \u00a0<\/p>\n Every round, they implemented feedback so they could demonstrate momentum.<\/p>\n \u00a0<\/p>\n \u201cWe showed progression with what we\u2019d done since we last saw them,\u201d he says.<\/p>\n \u00a0<\/p>\n This included steps like brining in key customers and signing agreements with industry associations. <\/p>\n \u00a0<\/p>\n \u201cWe de-risked a lot of things and kept on moving forward,\u201d he says.<\/p>\n \u00a0<\/p>\n 5. Be genuine <\/b><\/p>\n \u00a0<\/p>\n \u201cIn our first pitch, we practiced for 30 hours straight in front of a video,\u201d he says.<\/p>\n \u00a0<\/p>\n Though commended on a strong delivery, the scripted approach caused investors to be wary.<\/p>\n \u00a0<\/p>\n \u201cThey said, \u2018we thought you guys were actors and we didn\u2019t know if you were the real deal\u2019,\u201d he says.<\/p>\n \u00a0<\/p>\n Investors want to see rawness and genuine hunger to grow your idea, says O\u2019Halloran.<\/p>\n \u00a0<\/p>\n \u201cYou can\u2019t do that if you\u2019re reading off of a script.\u201d<\/p>\n \u00a0<\/p>\n <\/b><\/p>\n 6. Get investors excited about you<\/b><\/p>\n \u00a0<\/p>\n \u201cYou don\u2019t raise money on a pitch, you raise money when you\u2019ve built a relationship,\u201d O\u2019Halloran says.<\/p>\n \u00a0<\/p>\n He says investors want to work with people that will take them on an exciting journey.<\/p>\n \u00a0<\/p>\n Though, at times it can feel like you\u2019re on Shark Tank<\/i>.<\/p>\n \u00a0<\/p>\n <\/b><\/p>\n \u201cI\u2019m a confident presenter with things I know but pitching to a room full of investors that don\u2019t laugh at your jokes can be quite intimidating,\u201d he says.<\/p>\n \u00a0<\/p>\n O\u2019Halloran recalls one of the best tips he received from an investor.<\/p>\n \u00a0<\/p>\n \u201cInvestors see pitches all the time,\u201d he says.<\/p>\n \u00a0<\/p>\n \u201cWhat you want to be is the startup they want to talk about at a barbecue.\u201d<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n Follow <\/i>StartupSmart on <\/i>Facebook<\/i><\/a>, <\/i>Twitter<\/i><\/a>, and <\/i>LinkedIn<\/i><\/a>.<\/i><\/p>\n <\/i><\/p>\n <\/i><\/p>\n <\/i><\/p>\n