For any startup, venture time is of critical importance. As an entrepreneur you need to get into any emerging market at the right time just when it is rising to make the most of it while getting in early can mean failure. Those who delay have to stay out while the startup venture entering the market in time reaps the benefits.
If we look at statistics, only 0.91% of all new ventures are able to acquire investment from angel investors while those getting investment from VCs is even smaller and stands at 0.05%. In such a situation, timing is very important to convince investors and could well be the difference between getting seed capital and closing the business.
Three Principles on Utilizing Time
There are three basic principles that you need to make use of while presenting your proposal to investors and time it properly to have the best chances of approval.
Timing Your Presentation:
The right time to pitch for investment for the startup venture is critical and according to studies, it is necessary to time the presentation in such as way that the audience does not have to sit for long time. One interesting study on eight parole judges by Ben-Gurion University that spanned over a period of 1 year in which denials and approvals were monitored highlights this point. In the study, it was found that as time gap from the last meal increased the decision to deny clemency went higher. Thus it tells us that when tired it becomes easier for a person to say no.
Use of PowerPoint Slides:
At the time of pitching for your business proposal, it is important to use PowerPoint slides to explain about revenue streams and growth projection in a simple to understand manner. You need to time your presentation of each slide in a way that it is shown to audience after you have started explaining about a point and slide needs to be shown only if enhances the point you are presenting.
Investors have near-term thinking which means that they wants to see a startup proposal which is both economically viable as well as there is less risk in putting their money into it. Thus, while preparing proposal entrepreneurs have to keep both of these points in mind.
Getting venture capital is important for every startup and entrepreneurs need to make proper use of time to pitch for their proposal to have the best chance of getting approval.