Inventors are in the business of inventing things – no surprises there. But often they forget that they need to do more than come up with some fantastic opportunity. An invention can be an amazing feat of human intellect. But if it’s not paired with business execution, it’s hardly worth a dime.
Marketing their inventions to prospective investors can be a headache for inventors. Investors want to see the market potential of an invention. And entrepreneurs need capital to ensure that their invention is brought to market rapidly. But sometimes inventors and investors can end up talking across purposes. Investors might not understand the real potential of the invention. And inventors may struggle to communicate it.
If you want to get venture capitalists on your side, here’s what to do.
Consistent And Clear Signals
After the recent spate of world patent marketing complaints, it might seem hard to get any traction for your idea. But the problem there was the fact that inventors weren’t focusing on profitability. When you pitch your invention, it needs to be more that just a showcase of the invention itself. Don’t just leave the ROI to the investor’s imagination. Instead, build a pitch as you would in any other area of business. The bait, of course, is the executive summary of your invention. But the value proposition for the end consumer is the real hook.
People looking to invest in your company want to know if you are the sort of person with whom they can collaborate. If you find yourself prone to regular outbursts of rage, then they might decide that they don’t want to work with you. The value proposition to the investor isn’t just about the dollars that your invention might earn. It’s about the quality of their day-to-day life as they work with you.
One way you can show investors that you care about their personal well-being is to tailor your pitch. Some investors will want to invest in businesses with short-term profitability. Others are more interested in playing the long game. Knowing which type of investor you have on your hands will change the way you approach them. There are plenty of ways you can find out which type of investments investors are most interested in. A simple search online will usually inform you of investment history. Or you can just ask them straight up where they have invested in the past.
Be Emotionally Engaged
Mike Makropoulos is the founder of High Impact Funding. And he knows a thing or two about playing the VC game. He reminds startups that they should always be emotionally involved in what they’re saying. Investors and VCs see dozens of pitches every month. And so if you’re going to get their attention, you need to hold their attention. A person who is passionate about what they’re doing is much more likely to engage an investor than an individual who is reading off a script.
The advice from Makropoulos is to develop a compelling story that is also believable. Your pitch must have impact – but it must also make sense.