3 things going through an investors mind

Have you ever wondered what a potential investor is thinking during and after you pitch them your startup? Here are the top three things going through their minds during the pitch.

Do I understand it?

You need to make your idea and the problem it solves as clear as possible. I should be able to know exactly who you will help, what must fix pain you are solving, and how you are going to solve it. It’s very likely the investor you are speaking with is not in your industry. What might seem obvious to you, will not be for them. Make what you do very clear. A rule of thumb I like to use with clients is that they should be able to explain their idea to their mom and have her understand it.

Am I excited by it?

If an investor understands what it is you are trying to do, and how it will make an impact - it makes it much easier to get excited. However, even if you are solving a must fix pain and you are crystal clear the investor you are talking to may not be excited about the field you are working in. Part of some prep you can do prior to just pitching any investor is to look up what types of startups they fund. Picking someone who has a history of funding startups in your market will mean they will be more likely to get excited about what you are looking to do.

Do I like the team and do I want to work with them?

A common mistake people make is that investors just invest money, and they occasionally check in. That's not the case. A typical investor is very involved with a startup. They will be spending a lot of time with you. If they don't like you, or your team - chances are even if you hit the first two points - you will not connect with the investor and they will say no. Investing is a huge commitment. I like to use the analogy of marriage. Your team and your investors will be spending a significant amount of time together.

Understanding, excitement, personal connection.

Make your idea easy to understand. This in turn helps people get excited about your idea when they see a clear solution to a pain and a revenue plan. Make your team easy to work with.