The ‘correct way’ to pitch your SaaS Business to investors.
At a Glance
Every SaaS enterprise needs to raise money at one point or the other, and for this, they must reach out to investors. The success in securing the necessary funding depends entirely on the way the business is pitched to those interested investors.
The difference between successful people and others is the time difference they spend in feeling sorry for themselves.
Barbara Corcoran, Real Estate Mogul
A SaaS enterprise needs to have a comprehensive pitch before facing the investors to raise the required funding
Walking into that critical meeting with sweaty palms and nervous jitters in your tummy, you know this is something you need to work out and has to work out, but you’re just not sure if it will! When you are thatSaaS start-up who is at that right stage to play the big game, investors and funding play a vital role in ensuring your business’s growth. It can be angel investors or venture capitalists, their experience and money can bring a lot of benefits for your SaaS Start-up. But capturing their attention, having an impressive SaaS pitch with well-defined dynamics, structure, justification, and reasoning is a must. (Thus the sweaty palms and jitters)
The SaaS business pitch presented in front of the investors will help you and your business raise the necessary funding to break into the market, create a buzz around your company and grab the targeted customers’ attention. The investor pitch for your SaaS business could be a key factor in grabbing hold of potential investors. In a market that is so competitive, big investments make a strong impact. So, your SaaS business pitch should describe the market, how your service will cater to that particular market, and the edge your product has over that of the competitors. So, it becomes especially important to invest adequate time and effort in preparing a business pitch that can impress the investors. The business pitch can be the make-or-break point for your start-up. Hence, you need to offer complete attention to some important aspects that must be covered in the same.
Present The Actual Picture In-Front Of The Investors
To grab hold of any investor’s attention, one must specify the targeted audience’s problem as crisply and accurately as possible. Keeping that in mind, the problem should be stated in front of the investor in less than 10 seconds for them to grab hold of your narrative.
● What Is The Problem
Describe and quantify the problem that is faced by the audience?
● How Big Is The Problem
Always make sure that you specify the number of people or the sectors of the market facing issues because of the problem.
● How Big Is The Opportunity?
Once you have listed and described the problem, the next step is elaborating on the available opportunities for the investors and how they can get back their money from their (potential) investments in your SaaS Business. In simpler terms, the higher the risk, the greater the opportunity. Hence the SaaS Business investors would be interested in sitting and listening to your business proposal.
● List Down The Competitors
The last stage in this process is to list down the SaaS Business competitors in your pitch. What technology your competitors have invested in? How well are they able to cater to the needs of the people? What are their returns? All these details matter to the investors.
Describe Your Service And Company
Once you have identified and described the problem, then the next stage in your SaaS business pitch to the investors would be to describe your products and services in detail. The most important thing to remember here is to ensure that your products stand above that of the competitors. Specify what technology you are using. Think about how different your services can be to those being offered in the market for the same problem. Have a look at the below-mentioned points while pitching this aspect of your SaaS business to the investors: –
● Organize A Demo
Always ensure that even if your service is not complete, you can give a brief idea via a demo in front of the investors. There is nothing better than to see the real prospect with one’s own eyes.
● State Company Background
An investor can connect with the company when they are shown real stats more than 70% of the time. So, make sure you list down the reasons and plan behind why and how your company started. What pillars does it work upon? How has the rate of return been so far? Has it been able to compete against the already existing competitors? What is the annual rate of return? The company policies about the services offered. And most importantly, the customer service organization in the company and how well it connects to the audience.
● Company’s Positioning
Make sure there are ways your company has worked differently in the same situation as that of your competitors. In simpler words, make sure that your products and services rank higher in all positive areas listed in a GTM slide
● Market Advantages
This is a must and game-changer in your SaaS business pitch to the investors. You should always mention that the rules of working within the company are fixed, but the style depends upon the market fluctuations.
● List USP
No investor wants to invest in a technology or service with 10’s of the same type already floating in the market. Even if your business is small and brand new, make sure you highlight the aspects you are different and unique in the market.
● Company Principles
The last step in your SaaS business pitch is to list the principles your company works upon. If an investor can connect or feel that your principles are strong enough to guide your service offered in a positive direction, then there is no stopping you from realizing your funding targets.
There is absolutely no doubt in the fact that a proper SaaS business pitch can mean the difference between you being able to raise the funding or not. By getting the desired investors onboard, you can leverage not only their financial strength but their networking as well. So it is no wonder that after the pitch you’ll be just as tense to get a sense of how the pitch went. Your only option, wait and find out. And in the words of Thomas H Palmer, if at first you don’t succeed, try and try again! That is the attitude with which you need to face your funding strategy!