Increasingly, the Internet is also being used to transform how startups find the capital funding they need. In particular, crowdsourced investing websites are connecting people with great ideas with those who wish to help fund them. Creating an effective pitch, however, will require a considerable amount of thought and planning. Here are a few tips to consider.
Planning, Planning and More Planning
Those who create online pitches sometimes fail to plan as much as they would if they were targeting traditional investment venues. Because of this, user sometimes get the impression that the project is being run in a disorganized, haphazard fashion. Planning can help you create a pitch that will impress those who read it, and they can help you answer any questions potential investors may have about your proposal.
Pitches are necessarily long, but structuring a pitch correctly can help you form a pitch that will inspire readers. In general, it helps to get to the point as quickly as possible; by sharing what your project will do in the opening paragraphs, you can help ensure that readers will not become bored and look elsewhere. In addition, a frequently-asked questions section in the middle or bottom of your pitch can help assuage any fears potential investors develop. Most of all, ensure that readers are given a well-structured, logical document to read.
Create Appropriate Rewards
While the purpose of crowdfunded investing is to generate money, those who donate will want something in return. Even those who donate a small amount of money will want to see that their investments are appreciated. It can be difficult to come up with appropriate rewards for those who invest small amounts, but taking the time needed to do so can help tremendously. Make sure your rewards are thoughtful, enjoyable and not too expensive.
Ask For Help
Many entrepreneurs pay writers to help them draft their pitches, and asking for input can help you determine the best way to structure your pitch and share information. By reaching out to others on social media and other platforms and asking for input, it is possible to find free help, criticism and input. Even friends and family members can help by reading your pitch and sharing their thoughts. For especially large projects, it may be best to hire a professional to help you create your pitch.
Follow The Rules
Platforms that connect entrepreneurs with investors often have strict sets of rules; ensure that you understand these rules before sharing your pitch. Great projects have been sidelined by rule violations in the past, and it can be difficult to regain trust after breaking the rules. Fortunately, most websites give users considerable latitude, but it is always best to ensure that you do not violate any guidelines.