So you’ve got a great idea for a product. And you’ve done your homework on how it would fit into the marketplace. Now, you just need funding to design, test, build, and market it. Easy-peasy, right?
Not quite. The road from concept to launch is littered with ‘great ideas’ that never received funding.
Jeff Francis, founder of ENO8
During Dallas Startup Week 2024, Jeff Francis, founder of ENO8, drew on his background and expertise to share his “Top 10” tips for having an effective conversation with investors.
“In general, I think people know that there are a few ways to fund their startup: bootstrapping, venture, and angels. But no matter who you’re talking to — whether it’s a seed round, Series A, B, C, or D — investors are evaluating the likelihood of seeing a return. So as a founder, you have do the prep work in order to be confident about how you plan to provide a return on their investment.”
Francis says the most impactful pitches anticipate potential questions and demonstrate that you’ve considered all angles of your product or service, not just why it’s awesome. To do that, he suggests including the answers to these questions in your pitch or being ready to respond to them.
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Who are the end users? Who is going to be buying this product, and is this different from the end user?
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Why will users love (or not) this product? What’s the problem being solved for users?
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What is the broader disruptive agenda this product fits into?
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What will be the key differentiating feature at launch?
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What will it look like? (You may not need a design prototype)
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How much will it cost to build? How long will it take to build?
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What type of technology is needed to build it? Is it even feasible? (This does not necessarily determine a yes or no; tech is evolving quickly.)
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What type of team will it take to build this?
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Is there already a launch/release plan?
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Is there enough product clarity to start raising capital?
He added that DFW has a good angel network, and while investors may understand that your idea may be in the early stages, they’ll still want to know you’ve considered these questions to the best of your ability.
Voices contributor Nicole Ward is a data journalist for the Dallas Regional Chamber.
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