As an entrepreneur looking to raise capital, you’re probably considering multiple avenues of investment, but one in particular that may be beneficial to focus on is corporate investments.
More and more, corporations are getting into the startup space, and are looking for the right companies to back for optimal return. Knowing which corporations are leaning towards this avenue of investment, and how to capitalize on that knowledge, is key to a successful funding round.
Here are a few tips on how to hone in on the right type of corporation to approach for an investment, and how to put your best foot forward when pitching them.
Do your homework
You could spend countless hours spinning your wheels by pitching the wrong types of corporations. Instead, focus your efforts on those you know are specifically interested in funding small businesses and startups.
That way when you’re pitching them, you can spend more time focusing the rhetoric on your company, rather than on first having to convince them to even consider funding a startup to begin with.
Make an emotional connection
Making a personal connection is key to getting those in a corporation emotionally invested with your company and its mission. If your startup, for example, was in the environmental protection space, you wouldn’t solicit funding from investors that have previously partnered with companies that specialize in clearing forests for commercial use.
Instead, you would seek out one that has some sort of connection with the environment, and its preservation. This same thought can be applied to any field you are in. Once you have honed in on your message and mission, find corporations that have similar initiatives and goals to your own, and who would benefit not only financially, but emotionally from your company’s success.
Know how your startup will benefit
In addition to the obvious financial advantage that an investment brings, it’s also important to consider other potential positives that could come as a result of partnering with a certain corporation.
If you’re interested in expanding your business to the government sector for example, finding a corporation that has a similar goal can be mutually beneficial for both parties. When approaching a corporation, take the time to learn about their goals so that you can best align your pitch to match their needs, thus making your business one they should seriously consider investing in.
Keep them updated, informed
Once you have the right corporation on the hook for a potential investment, it’s important to keep them there. After your pitch, be sure to update them on any customer acquisition news, product developments, and the like so that the corporation feels a part of your company’s journey.
If they are reaching out to you to ask for these updates, you’re too late. By being proactive and transparent with them, you’re showing a level of transparency that they can expect moving forward if they invest with your company, and also that you’re a growing company worth investing in. ●
Sheri Atwood is founder at SupportPay by Ittavi
