Using Sales to Pitch to Investors

In all of my previous blog posts, I’ve been researching sales methods to help grow my videography business and writing about what I’ve found. Today, I chose to switch it up and write about a different topic. I was scrolling YouTube when I came across a TEDx talk titled, “Why VCs and Angel Investors Say ‘No’ to Entrepreneurs” by startup investor Alicia Syrett. Sales is vital to entrepreneurship because every startup owner has to use sales to sell their idea to potential customers as well as investors. Syrett had four main points throughout the video that all have principles that can be applied to any sales situation. 

Entrepreneurs make Rookie Mistakes

Her first point was that investors say no because the entrepreneurs (entr) make rookie mistakes. She started by suggesting that the business owner should research the investor first to make sure they invest in that industry and to make sure that you know a little bit about them prior to your outreach. Also, the entr should be pursuing warm leads rather than sending mass emails to investors that they have no prior connection with. Lastly, she stressed the importance of timing. She said that you should never reach out if the industry is tanking, or the investor is going on vacation because they are more likely to say no right off the bat. 

Character Matters

Syrett opened this section with “don’t be weird”. She recalled a time when an entr was pitching an idea to her and he burped in her face. She said no to him. She also mentioned that you shouldn’t come off as “salesy” or overconfident. You should also use good judgement on the funding ask because they want to see that the money would go towards actual business growth. If the investor sees any questionable character traits they are likely to say no. 

Fit Matters

The average lifespan of a relationship between an entr and an investor is longer than the average marriage. This means that the entr should not focus solely on money but finding an investor that is a good fit for their business and for them personally. You should make sure that there is a good connection and that you both are in a position to benefit from the relationship outside of monetary funds. You should also be attuned in the conversation and show them that you care about them. 

Business Basics

Lastly, she talked about the importance of the idea itself. It should be well thought out and you should be knowledgeable and ready to answer questions. This relates to believing in your product in sales. 

While her talk was about pitching startup ideas to investors, I think that the points she made can be related to any sales application. From being prepared to having a personal connection and being attuned, there are a lot of topics that relate to what we’ve learned in sales class.