4 Steps For Successfully Pitching A Healthcare Startup To Investors
Securing investors is a vital aspect for launching a successful startup but it is especially important for entrepreneurs who want to enter the healthcare industry. This field is so competitive that it can be difficult to break into the industry with a new and innovative product or idea. An investor provides the funding you need to break into the industry, so finding the right person to back you financially is critical for success. Once you have developed an innovative idea for a startup and created a solid business plan, it is time to research potential investors so you can develop the perfect pitch. Here are four tips to help you secure an investor for your healthcare company.
Research Potential Investors
Making sure you choose the right audience is critical for success. If you’re pitching to an investor who primarily funds marketing startups, he or she will probably not be interested in a healthcare startup. Similarly, investors want to diversify their portfolios so pitching a new weight loss supplement to an investor who already backs two weight loss companies will likely be fruitless.
Do the proper research to identify investors who are likely to be interested in your company. It is best to target investors who have experience in a similar industry. If your startup focuses on fitness, pitching investors who back nutrition and weight loss programs is a good idea. If you want to launch a startup that focuses on improving mental health, choose investors such as Dr. Harry Stylli, who backs pharmaceutical companies that create medications for mental health disorders.
Knowing this information allows you to create a list of potential investors. Place your first choice at the top of the list and work your way down. This gives you the best chance of securing an investor for your company.
Customize Your Pitch
Your pitch should include all of the important details about your startup. The investors need to know the basics of what the company does, how long it has been in business and what your sales are. You also need to present a solid business plan that indicates how you plan to grow the company.
In addition to the technical information, your pitch should also include specific information that piques the interest of individual investors. If your investor has a well-known interest in sustainability and your company plans to develop medical supplies that are green, you should focus on the sustainability aspect of your business. If the investor is more focused on sales, place a higher emphasis on your current and projected revenue. Customizing your pitch allows you to appeal to many different investors without having to change the content drastically.
Highlight Your Passion
Every entrepreneur is passionate about his or her startup. The most successful startups are those that are spearheaded by people who truly believe in the company’s mission. This passion goes a long way in convincing investors to back your startup, so they need to see evidence of it in your pitch. Include the reason you are passionate about the company in your pitch and do not be afraid to answer questions with responses that showcase that passion.
Investing in any type of startup is a gamble. Investors will carefully weigh the pros and cons of backing your company financially. Passion is a good quality that shows investors you are willing to put in the hard work and dedication required to make your company successful. For this reason, investors are more likely to back your company if you demonstrate your passion for the company. During your pitch, make sure your passion shows but keep from being overly emotional.
Keep The Pitch Simple
Investors are busy and they do not have time to listen to lengthy pitches. They want to know all of the important details, but they do not need a lot of fluff in the pitch. If your pitch is too long and has a lot of filler content, it probably will not hold the potential investor’s attention. It also makes you seem like you are unsure of the technical side of your business and investors will not back a CEO that does not appear credible.
Keep the pitch short a simple while including all of the vital information. Using software to create a streamlined presentation can help you stay on track while giving your pitch. It is also a wonderful way to ensure you remember all of the vital information, but it is important to remember that you should never read directly from the slides. Doing so makes you appear unprepared.
Aim to keep your pitch under 20 minutes long. Research shows that this gives you plenty of time to deliver important information and statistics without losing the investor’s interest. It also gives the investor time to ask questions so he or she can determine if your business is a good financial risk.