In previous articles, we said that one of the best ways to launch a startup without technical knowledge is to attract the right technical co-founder.
Optimistic and creative managers always have ideas for developing their business that can change their future. But most of these notions require large investments and the participation of technical people. In this case, the best solution is to attract an investor and a technical co-founder to help you implement your plan.
If you plan to run a new business or develop the old one, you should know that finding technical and financial investors is not easy. The fundamental issue here is how you introduce yourself to potential investors and the technical co-founder to attract their attention to funding their money or time in your work.
Sometimes you may have less than 10 minutes to introduce yourself, so it is very important to plan ahead. Follow us in the article with strategies for attracting investors and technical co-founders.
Strategies for Attracting the Right Investor & Technical Co-Founder
Tell your story well.
Start with a compelling story. This will get your audience involved from the start. It will be more effective if you can relate the story to the listener in some way. Your story should be about a problem that you intend to solve by producing a particular software or product.
Provide your solution.
List the unique features of your potential software or product. Explain how these innovations help solve the fundamental problem. Be sure to explain briefly, accurately, and only in this regard.
Describe your previous successes to the investor or Technical Co-Founder
You need to create a credit for yourself in the first session. After the above steps, spend some time explaining your previous successes. This is an opportunity to attract the attention of investors. But keep in mind that talking about achievements should not precede the main issue. Although your medals are valuable, they are not more important to the technical co-founder than what you want them to do.
Identify the target market.
Do not say that every person on the planet can be a potential customer for you, even if one day it happens. Limit your target market and be realistic about who you produce your product/software for. Not only will this appeal to your audience, but it will also make you think about your planning with a better policy.
What is your plan for attracting customers?
Bringing customers is an essential part of attracting technical and financial investors that is often forgotten:
- How do you want to get a customer?
- How much it cost you?
Your financial situation should be commensurate with your customer acquisition costs.
What makes you different from competitors?
The investor needs to know your advantage over your competitors and why to invest in your business instead of others’.
The best way to show your advantages is to use a matrix format. Place your opponents on the right side of the matrix and your innovations at the top. Then mark your competitors’ features. At best, your opponents should have very few of your capabilities.
What is your income pattern?
Investors think about this more than anything else: How do you want to make money? Explain to them exactly how you will make money from your potential software or product and reaffirm that the market is waiting for you.
What are your financial forecasts?
Show financial investors and technical co-founder what your forecast is for the next three to five years. You need to prove the numbers you provide by expressing your ideas and assumptions. Investors will probably do the calculations again to make sure you are correct. So give them the information they need. If your financial chart shows growth, be sure to explain why.
Your work team
Investors first invest in people and then in ideas. Make sure you share details and information about your team and why they are the right people for the job.
You also need to talk about the skills that you lack in your company. Let them know that you know what you do not know!
How much money do you need?
If you are looking for a financial investor, you need to know exactly how much money you have and how much more is required.
Here’s what you need to address:
- How much money do you need?
- Why do you need this fund?
- What will this money be used for?
- How much will the income be?
Your exit strategy
If you are looking for a vast supply, most investors will ask about your exit strategies.
You need to show that you have thought about this, what your target companies are and why it would make sense after 3, 5, or 10 years.
