When starting a business, one of the main concerns of entrepreneurs is to get investments to make their business model take off. Developing a concise pitch that convinces you that your idea is worthwhile is essential to winning over an investor. How to present an idea to investors?
Therefore, eight successful entrepreneurs point out tips that can help other professionals in presenting their business models.
1. Know the market you are looking to operate
According to, co-founder, a marketplace for hiring legal correspondents, the main challenge is to study and get to know the market well, in order to demonstrate the growth potential of your startup to investors. Given the size of the market, the problem you solve and how you’re going to solve it has to be on the tip of your tongue.
2. Test your product or service
According to Allan Costa, one of the main speakers, serial entrepreneurs and angel investors in the country, it is essential that entrepreneurs develop the Minimum Viable Product (MVP) of the business before carrying out the pitch.
The process is essential in assessing the startup’s viability, as potential investors are able to verify the level of adhesion of customers in relation to the proposed solution. “The more satisfactory, and preferably enthusiastic, feedbacks from their consumers during the product or service testing period, the greater will be the interest of investors and, consequently, the more favorable will be the negotiation of the contribution for the entrepreneur”, he adds. How to present an idea to investors?
3. Solve the everyday problem
For Francisco Forbes, CEO of SEED, to attract investors the big ‘gain’ is to create a business model focused on solving problems, which exist in droves in our daily lives. This is the “big idea” that will attract investors to a company. Being an entrepreneur does not mean setting up fun companies.
Entrepreneurship is a state of mind that can express itself even within big business, politics, family and life. This feeling can be applied to everything; just have a dose of curiosity and willingness to solve problems. Many people think that taking the first step is a great different idea, but setting up a business has little or nothing to do with an artistic creative activity, it is in solving problems that the great ideas are, not in the creation of totally disruptive models that in extreme can become alienated or distant from our reality.
4. Be simplistic in your explanation, yet memorable
For Adriana Barbosa, general director and founder, a pioneer in mobile payments solutions, it is necessary to have focus and content in every sentence you say. It is recommended to think about presenting, in a simple way, what your project is, how you identified – and tested – that there is demand, how it differs from other solutions and why it is a business model to be invested. How to present an idea to investors?
5. Be transparent
First of all, the entrepreneur must remember that the idea for the investor is not worth anything, but the pain it will solve in the market and the team that will make this idea a profitable and differentiated company. It is also worth noting that transparency must be total, ask for advice, show where you need help, what you believe for the medium and long term, etc.
Here’s a sentence that illustrates this scenario well, “if you ask for money, you get advice, now if you look for advice, you get money.” Finally, don’t give up easily in the search for investors even in this adverse market and check if it’s going to be a good match. For Lucas Melo, co-founder of, An interesting tip here is to imagine that the potential investor will call you Sunday night, if you feel it will be a pleasure to serve you, it indicates that you are a good candidate.
6. Emphasize your differentials against competitors
The biggest challenge when presenting your project to investors is, according to ,CEO , to be able to differentiate not only from direct competitors in the market itself, but also from other businesses that the potential investor is evaluating. At this time, it is essential to include broader market information in the speech, highlighting market size and growth and, consequently, the value of your business. How to present an idea to investors?
7. Keep in mind that talking to investors is not a firing squad
For Tomas O’Farrell, co-founder , a marketplace for hiring freelancers operating throughout Latin America, it is important to remember that investors are also consultants, and that they can provide relevant information for the progress of your project. Therefore, take questions that promote dialogue with professionals. The end result will be much better.
8. Form a team with complementary capabilities
Alex Tabor, co-founder and CEO, the largest platform for local offerings in Brazil, says it is important to build a body of strategic partners with complementary skills and aligned with the company’s biggest challenges. The team needs to convey trust and engagement. According to Tabor, “for many investors, the founding team is more important than the business model itself, as it is possible to show the project’s execution capacity through it”. How to present an idea to investors?