Entrepreneur and investor pitching priorities out of sync
While 38% of entrepreneurs think a business plan is the most important factor, most investors think the founder and the idea are the most important
There is a significant disparity in the factors that entrepreneurs think are most important when pitching for investment and the factors that investors actually look for in businesses, research from Company Check has suggested.
Surveying 3,000 business leaders and a number of angel investors, it was found that 38% of entrepreneurs believe a business plan is the most important factor in influencing an investor’s decision, followed by sales figures (15%), the idea (9%) and the economy (8%).
In contrast, the high profile, experienced angel investors that were surveyed said that the founder, the business idea, and sales figures should all take priority and were the areas of a pitch that they most cared about.
Alastair Campbell, founder of Company Check, said: “This just shows the need for good communication between investors and the people who are trying to secure their backing.
“That way, future pitches can be more relevant to what the so-called ‘Dragons’ actually care about, more successful deals can be done that benefit both sides and more promising young start-ups can get off the ground.”
Find out more about what investors actually look for in a business by reading our Meet the Investor interviews.