What Not To Say To An Investor

Apr 5, 2023
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When it comes to pitching your business to investors, what you say (and what you don’t say) can have a big impact on your chances of success. Here are a few things that you should avoid saying to investors:

“I don’t know much about the competition.”

Investors want to see that you have a solid understanding of your industry and the competitive landscape. If you don’t have a clear understanding of who your competitors are and how you differ from them, it can be a red flag for investors.

“I just need funding to get started.”

While funding is certainly important for getting a business off the ground, investors want to see that you have a solid business plan and a clear path to profitability. If you don’t have a plan for how you’ll use the funding or how you’ll generate revenue, it can be a turnoff for investors.

“This is a guaranteed success.”

No business is a guaranteed success, and investors know this. If you come across as overly confident or unrealistic about your chances of success, it can be a red flag for investors.

“I have no competition.”

Every business has competition, even if it’s indirect. If you claim that you have no competition, it can make you appear naive or uninformed.

“I’m not willing to give up any equity.”

Investors are looking for a return on their investment, and that typically means they’ll need to own a portion of your business. If you’re not willing to give up any equity, it can make it difficult to secure funding.

In conclusion, when pitching your business to investors, it’s important to avoid making statements that could be perceived as naive, unrealistic, or uninformed. By doing your research, developing a solid business plan, and being realistic about your chances of success, you can increase your chances of securing funding and building a successful business.

Learn more about developing an investor-ready pitch in our Regional and International programs.

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