Just think about this… Jason Calacanis, probably the most successful investor in today’s world, has approved your pitch and has committed to invest in your Startup company.
Will it be difficult? You bet.
Will it be impossible? Hell no!
This coming June 10 & June 24, there will be an online session called “Remote Demo Day”.
Where 7 lucky startups will be selected to pitch to Mr. Calacanis and his associates. (Different batch each week). If chosen, you only have 3 minutes to sell your business.
In what they call “Trailer of your Startup”, you get to choose what you want to put into it.
Why only 7 Startups will be chosen?
I have no idea, but there’s no harm in trying is it? What have you got to lose?
So better buy your chips and start rolling the dice.
Don’t worry, I’ll help you spring up your chances.
To win, you need to develop an effective elevator pitch. You need to bring out your “A-Game”. Allow me to present to you this very useful tactic:
“GRAB ATTENTION WITH A PROBLEM QUESTION, FOCUS ON THE NEED, AND BE CONVERSATIONAL”!
Here’s an example…
Let’s say you created an App that is much better than Airbnb (since Airbnb is having problems now with their existing hosts & landlords and are much in trouble).
Then you start with a problem question and ask them this…
“Hosts & Landlords are leaving Airbnb and are now looking for other platforms, Is there any good out there”?
Then follow it up with a short proposition which explains how your company will solve their problem.
“We were able to fix up a platform that gives “INCREASED” priority to the needs of hosts and landlords by giving them more freedom with their cancellation and bookings”.
Finish it up by saying this…
“We are focusing on the need, not the technology”.
That’s it! Short and simple.
Remember, the goal of Remote Demo Day is to get investors to take a 2nd meeting where you can go over the granular data.
Trust me, the battle is half won once you got a 2nd meeting with Jason and his team. Once you’re there, better get your term sheet ready.
Here are some other pieces of advice that might be helpful…
1.) Personal Relationship
=> Raising money is a relationship play, not a lottery play. Put into mind that there always people involved.
Investors are people, they’re smart, and they’re not jerking around.
As founders, we need to find out who they really are (inside & out) and start building a solid relationship.
Don’t hesitate to ask for advice. They are more than willing to give their unsolicited expertise.
2.) Show Results
=> Investors want proof that your Startup has real, paying customers. They want to see early signs of Traction.
Investors are looking for a business opportunity with growth potential. You need to have a market with significant reach.
Believe it or not, most CEOs dedicate at least six months or sometimes more when pitching to investors.
Show them all of this, and you can even approach the “Bigger Fishes” in the pond (a.k.a. Jason & Company).
We don’t live in a world where small startups should only be looking for smaller, lesser-known investors.
Show them your worth. In the end, it’s the results are what truly matters.
3.) User Engagement and Metrics (KPI)
=> Demonstrating that people like and are using your product is going to be one of your biggest assets when it comes to attracting investors.
Not only does keeping track of and sharing this information prove that people are interested in your product or service, but it also demonstrates your commitment to the growth of your startup. Exhibiting that “Spreadsheet” of yours is good evidence that you care about the outcome.
4.) Make sure your Product Solves a Real Problem
=> Too many entrepreneurs simply try to reinvent the wheel, so avoid being one of them.
I’ve found more investors than I expected who were tired of funding “Me-Too” apps and incremental advances.
5.) Return on Investment
=> The best way to stand out and get interest is to clearly illustrate how and when you will get them a return.
The decision comes down to simple math: The lower the risk, the higher the expected return, the greater the chance they’ll invest.
6.) Get Real, Be Honest, Be Yourself
=> Tell them where you are currently, where you will be before closing the next round and what the new capital will enable you to do.
Get them to agree that the metrics make sense and then hit them. Everyone likes someone with a track record of doing what they say they will do.
Don’t make false statements. They will find it anyway.
Better be a straight-up honest founder, than a liar or a phony.
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Last but not the least…
You could be asking me this… So why Jason and his group, when you can raise funds through alternative Online Fundraising Platforms like AngelList, SeedInvest, Wefunder, etc?
Well, because we all know it is not about just the money.
Jason and his fellas have been in the game since the dark ages. They have deep knowledge and years & years of experience in Startups and Businesses.
They are also far more well connected not only amongst their peers, but through their outside network.
In other words, you will be like Luke Skywalker training under Yoda in Dagobah.
You will be in a different world when you are with them.
Just think about it. Jason Calacanis invests in 2–3 companies a month.
Jason is pretty good (maybe the greatest of all time) at bagging “Startup Unicorns”.
If he chooses you and your company, that means that there is that possibility that you can be a Unicorn too.