How your Tech startup is shooting itself in the foot (on the start line)

Everyone knows 90% of startups fail, most at the first major hurdle, connecting with investors. Here at the top three reasons investors just don’t “feel it” when looking at startup opportunities and how to make your brilliant idea the one they want to be a part of.

Investors don’t understand what you do

No one is investing in something they don’t fully understand. Also, no one wants to feel stupid or patronised, if you have ever had a bitcoin investor explain cryptocurrency to you like they invented it, you will know what I mean. Startups are all about bringing people along for the ride and building trust. This starts with turning all of the complex systems and processes that may be involved, into a clear concept described using language everyone can understand. No jargon, for goodness sake no acronyms. Sound easy yeah? However, it requires trying to imagine you know nothing about the thing you know everything about. Harder than it looks.

The two easy options here are, to find a (willing) layperson who does not know you or anything about your startup and tell them your idea. Don’t try and sell it to them. Just explain how it works and what it does. Then ask them to explain it back in their own words. Use their words as a base for a one-pager.

The second (much easier) option is to hire a copywriter. Copywriters are knowledge translators who are trained to write for an audience, in your case investors

You don’t have a brand style guide

Having an amazing startup idea and knowing how it could revolutionise your industry is just not enough. Investors want to know what kind of people they are getting into bed with. A brand guide is crucial for any startup as much for the business itself as the investors. Your guide should include.

Mission- Why does your startup exist? What problem are you solving? Ie. Ridding the world of disposable chopsticks or Helping pedicurists with their posture.

Vision- What do you see your business achieving in the future? Ie. Ending world hunger or Stopping people pushing in line at delis’.

Target audience- Who are you selling your product or service to (try and be specific)? Ie. Women between 25 and 40 who catch public transport or Retirees who grow their own corn.

Personality- How do you want your brand to come across? Ie. No nonsense and authoritative or funny, clever and a bit cheeky?

Values- What does your company care about? Ie. Giving back to the community or customer satisfaction.

You make them feel icky

Remember investors are actual people (I know .. What?). They are investing in you as much as your startup, if they love the idea but your pitch gives them the ‘icks’ they are not going to be handing over their hard-earned anytime soon. This step is made a lot easier once you have your plain English description and your brand guide sorted.

Then you look at your investor as your temporary target audience. Do a bit of research, consider their age, their background and consider how they might see you and your startup. Are they full-time Angel investors in their thirties who like things short and sharp or first-time investor who wants to build a rapport before you get all up in their business talking numbers? Pitch accordingly.

This preparation can seem preemptive but it will also put you ahead of the game once you hit the market. It will all be worthwhile when you are out of the blocks and flying down the straight.

Want to learn more about how a copywriter can give you the edge? Check out Writelyso.com.au  

Looking for a free style guide template? Find one here Canva