Probably the most challenging part of launching a blockchain startup is attracting investors and get financing.
The main problem is that the term “blockchain investing” comes with a stigma, particularly in the eyes of people who know little or nothing about blockchain technology. Unfortunately, some people still deem any form of crypto investing as a scam and reject any startup pitches.
If you want to win the investors’ attention, you should write a pitch that will prove both: the profitability and credibility of your startup idea.
In this article, you will find useful tips on how to craft a winning pitch from scratch.
The first thing you should do when writing a startup pitch is to introduce yourself. You should explain to investors:
- Who you are
- What project you currently work on
- What blockchain solution you offer
The introduction part should be only two or three sentences long. Your main task here is to convince investors that your startup pitch is worth the time spent.
Describe the problem your startup can solve
In this section, you should describe a specific pain point.
A pain point is something that bothers your customers. It’s a concrete market need that your blockchain technology is designed to meet.
Here is an example of a pain point for a blockchain startup.
“Most organizations still heavily rely on physical documents – they want to digitalize documents but face challenges with keeping sensitive digital information secure.”
According to CBInsights report, 42% of tech startup fails because they try to tackle problems that are interesting to solve rather than those that serve a market need. To prevent the loss, investors fund only those startups that have identified a real customer pain point and proved that there would be demand for their product.
If you haven’t identified a market need yet, you should do it right now. This step will define the success of your startup.
Present your solution
You have already described the problem. Now you need to present your blockchain solution.
You should describe your product:
- Explain how your product works
- Explain why your product is better than other products in the market
- Provide details on how the target audience can benefit from using your product.
Keep in mind that not all investors are familiar with blockchain technologies and crypto terms. You need to write your startup pitch in simple words to ensure that investors will understand your ideas.
Define the business model
Now you need to provide an answer to the question that bothers blockchain investors the most:
How do you or will you make money?
You may have a great startup idea, but you will not get funding if you can’t explain how your idea can be monetized.
You should define your business model and specify it in your startup pitch. Furthermore, you should assure investors that you know what steps to take next to make money.
Here is a list of the most common blockchain business models.
- Blockchain As A Service (BaaS)
- Utility Token Business Model
- Blockchain-Based Software Product
- P2P Blockchain Business Model
- Blockchain Professional Services
Talk about money
The vast majority of investors do not care about blockchain technologies. They care about money. So, when you present your startup, don’t go into detail talking about technologies you are using. Talk about the revenue your innovative solution can generate.
Your task is to answer the following questions:
- What’s the size of the market you’re tackling? How many prospective customers/users do you have?
- How much money your customers/users are ready to pay for using your blockchain solution?
- How much revenue can your startup idea potentially generate?
Well, it might be challenging for you to make precise estimates. But you should put effort into this task. It’s the only way to convince investors that your startup idea is worth getting funding.
Define market opportunities
Naturally, you should provide some information about the market you want to enter. You should specify how big the market is and how fast it is growing.
Investors want to know what market opportunities are currently available for your startup and what opportunities are expected to emerge in the future. You should assure funders that your startup idea will be relevant in a year and five years.
Present the list of your key competitors
Let’s face it. The blockchain industry is developing with extreme speed. Even if your startup idea is super innovative, the chances are other startups are currently designing similar solutions.
You have competitors, and you should be aware of that.
Who are the key players in your niche? How will you compete with them?
Your prospective investors want to know who your competitors are and how you plan to beat them. So make sure to specify that in your startup pitch.
Introduce your team
One person is not capable of building a successful startup. For achieving success, a team of qualified experts is needed.
Do you have a strong team? Do your team members have outstanding cryptocurrency knowledge aside from the knowledge in their fields of expertise? Let’s say you have a marketer in your team. Does your marketer have previous experience in promoting crypto and blockchain startups?
Introduce your team members to investors and explain how each of them contributes to your blockchain project. The better you present your team, the more likely you will get financing.
Define your roadmap
What is your plan? What steps will you take after you get financing? You should create a startup launch roadmap and provide investors with ideas of what specific tasks you will work on next.
If you plan to collaborate with other organizations on different stages of your startup development, you should mention that in your pitch. Whether you will partner with a biotech startup or retail company, you should inform investors in advance.
Specify the amount of necessary funding
Finally, you can ask investors for money.
You should specify how much money you are trying to raise and explain how you will distribute your funds.
If you write that you need $500,000 and provide zero explanations, investors will reject your pitch.
Give a justification of how much money you will spend on new equipment, office renting, salaries, Facebook advertising, and other things. It will encourage investors to analyze your offer in more detail.
Just don’t oversell or undersell yourself. Ask as much money as you need plus 15-20% to cover unexpected costs.
General tips on how to write a blockchain startup pitch
We’ve just discussed what you should write in your startup pitch. Now let’s discuss basic writing rules you should follow:
- Use formal language.
- Exclude any information that investors may find irrelevant or not that important. Focus on presenting the key facts.
- Remember that investors are busy people. Keep your startup pitch short – show investors that you value their time.
- Don’t overuse blockchain terms in your pitch.
- Make sure that your pitch has a clear, logical structure. Don’t jump from one topic to another.
- Articulate your ideas clearly to prevent miscommunications.
- Read your startup pitch aloud and discuss it with your team before pitching investors.
A well-written startup pitch can help you to attract investors and get your blockchain project off the ground.
So, what are you waiting for? Jump into writing and craft a winning pitch today!
If you lack the writing skills to complete this task, consider getting assistance from your team members or professional writers.
Use every opportunity to pitch investors, and you will get the financing needed.
BIO: Dorian Martin is a writer, editor, and proofreader for Get Good Grade, and blockchain enthusiast. He is passionate about blogging, digital technologies, and extreme sports. He likes to create high-quality content and educate his readers on different topics, including finance, e-commerce, and investments.
Free image taken from https://unsplash.com/photos/mf-o1E7omzk
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