Are you planning to raise money for your business?

As indicated in the previous article, raising money is not a walk in the park; it needs preparations, commitment, and the knowledge of what it takes to raise money.

Venture capital receives hundreds of requests and pitches from companies that are seeking to raise money, whether is a start-up or a growth company, you need to strike them off with the first glance.

As they say, you don’t get the second chance to make the first impression. Your pitch document has a key role in deciding whether the investor will go the next stage with you or not.

Here are the common issues that must be covered in your pitch;

Company background

You need to briefly say about who you are, why did you start your business; what is really your story. In narrating this, the investor would easily pick some key attributes from you, as whether you are an entrepreneur they want to be associated with or not. This narration also shows how you developed your business idea. It needs to be fascinating, and TRUE.

Purpose of the company

You also need to briefly highlight the purpose of your business; this is different from the above. This describes your future, your business guiding principles, and what do you want the investors to see with you in the next foreseeable future.

Problem

This is a no-brainer; no investor will invest in a business that does not seek to solve any problem. You must demonstrate the problem you are solving, why do you think is a problem, and the extent of it.

Solution

After explaining the problem you are solving, you need to demonstrate the solution you are bringing up. How did you come up with the solution, how is the solution offered? Are you changing the user experience? Are you reducing cost? Are you increasing profitability? Are you addressing one of the 17 SDGs?

Impact

Many investors are now seeking investment opportunities that bring an impact on the community. In connection to the above point, you can look at the 17 SDGs and see which one (s) is/are linked to your solution, is it an agro solution that seeks to address food security? Or a healthcare solution that seeks to improve vaccine delivery?

Product

Here you need to demonstrate your product or service, how does it work? How is it accessed? How is it distributed? If it is a live pitch, you can bring with you a few samples of your products.

Competition

You need to show how much you know about your competition, what are their offering, what gives them advantage. You can’t develop your unique selling proposition if you don’t know about your competition

Why you and why now?

Here you need to clearly articulate your competitive edge, this part is easier if you studied well the competition and developed a product or service that is demand-driven, and you should be able to do this easily. You must also say why this is the right time for your solution.

Market size

You need to demonstrate the potential of your market, how big is your market size, what are the key drivers of your market growth, what are their consumption pattern, and your total addressable market

Team

This is one of the most important parts of your business, and therefore your pitch document. Who are your key players in the team, and what are their credentials.

Revenue model and traction

You need to define your revenue model, how do you make money, many start-up owners start businesses, and when you ask them about how they make money, they say they will figure it out as the business grows. This needs to be addressed from the beginning, and you also need to show some traction in your revenue game.

Financials

This is another key part of your business, you need to prepare the primary numbers of your business, and this includes revenue forecast, expense forecast, income statement, and your cash flow. This might include your initial valuation, your investment asks, and how much you are willing to give.

Salum Awadh is a CEO of SSC Capital, a corporate and investment advisory firm based in Tanzania and Rwanda , offering capital raising services, M&A, Corporate advisory, research and feasibility studies, business development, funds management, and development advisory