Creating a strong pitch
The pitch you create for your Uprise.Africa Equity Crowdfunding campaign is what potential investors will use as their deciding factor of whether to invest in your business or not. Getting it right, with all key information is essential to the success of your campaign. This is not a process to rush. As you complete each section, think to yourself, ‘if I did not know the company or the team members, would I want to invest in this pitch’.
Below are some guidelines on how to approach each section:
The first paragraph needs to answer the who, why, what, how. It needs to immediately grab the attention of the reader to entice them to read further.
The longer blurb of basic information is where you can describe your business/product further and highlight why it would be a sound investment. Leverage off your company’s experience, knowledge and proven track record. By describing your company’s market share, this will indicate the opportunity and gap thereby the need and longevity of your business.
Remember the ‘crowd’ might not have any experience in your field. Do not use industry-specific jargon or leave out information because you think it might be obvious.
Describe each of your team members indicating their experience and background. People invest in people as much as they do in businesses so ‘sell’ your team and why they are qualified to run this business. Investors buy into the people behind the company just as much as the IP so without a strong team, the business does not exist. Key roles are founder(s), CMO and CFO.
Your Investor documents will be public and downloadable. They need to include your business plan, Investor deck, and pledge agreement. Any supporting documents regarding financials and evaluations will assist in creating credibility.
Under your company overview is where you can provide an overview of your industry as context, the history of the company (why it was founded, how the idea developed), the model, scalability and challenges experienced thus far. Use this section to tell potential Investors the ins and outs of your business and give them an understanding of your industry.
In this section provide information on your business/ industry’s statistics regarding customers/consumers, success stories, and testimonials from key stakeholders.
Get a financial advisor or accountant to assist you with this section. Your financials need to be detailed: include graphs, tables, excel sheet, etc. Clearly indicate how the capital raised will be allocated and account for everything.
Provide a short analysis on each of your main competitors and why your company is different. Consider their strengths and weaknesses, their market share, strategy, etc.
If you do not have any direct competitors, illustrate the gap in the market.
Give potential investors an overview of the risks involved in your venture. Outline what could go wrong and how you are mitigating those risks. In doing so, you are addressing potential concerns and increasing the likelihood of someone investing in your business.
Funding goal capital expenditure
Show potential investors how you are planning on utilising the capital raised through your campaign. Demonstrate careful calculations that are realistic with goals that are achievable.
In completing the above sections and reviewing and editing as you go along, you will develop a strong pitch. Have an external individual or group provide feedback on your pitch to assess if it is clear and concise. This is a great way to ‘test’ your pitch on a ‘crowd’ before it is live for the public.