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Despite challenges caused by Covid-19, venture capital funding into Irish SMEs grew by 13% to €925m in 2020, compared with €820m the previous year, according to the Irish Venture Capital Association VenturePulse survey published earlier this year in association with William Fry.

However, deals under €5m, which represent startups and early-stage indigenous companies, fell by almost one-third (32%) to €194m in 2020 from €285m the previous year.

So why do startups and early-stage companies find it so difficult to attract investment?

Gaining finance for your company isn’t always easy. It’s a very competitive market out there and simply having a ‘great idea’ is not always enough, says Connor Sweeney, Seedcorn Project Manager at InterTradeIreland.

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To give yourself the best possible chance, you need to have an ‘air-tight’ business plan and have the ability to deliver a professional, clear and engaging pitch. But don’t worry, it’s not as difficult as it sounds, and with some help and guidance you will be on your way to securing investment.

Preparation and getting your business plan right

One of the first steps towards becoming investor ready is having a bulletproof business plan. Not only will this make you more attractive to investors but it also increases your chances of gaining investment for your company. Here’s how you can get prepared.

Presentation

Your plan should be laid out in a way that’s easy to read. Make sure to use headings, paragraphs and tables or graphs where appropriate. This will help to break up large chunks of text and keep the reader interested. Keep industry jargon to a minimum; not all readers will be familiar with the industry language either, so if you’re using acronyms, always explain them first.

Stick to the objective

When writing a business plan, keep to your objective. If the purpose is to raise finance then tailor the output to the investor’s point of view, i.e. a return on their investment. Prepare your plan with this in mind and really sell your project to the reader.

Keep the length appropriate

A business plan should be straight to the point. The plan should only serve to get you in front of an investor to make your pitch. Keep the main part of your plan, the executive summary, to two or three pages and your whole plan less than 25, using a size 12 font.

Verification

Always make sure what you say in your plan is correct, and use external data and research results to back this up. Never overstate the size of the market, as your turnover will need to reflect this. Also, avoid saying things like “we’ll achieve 5% of the global market” – instead, explain how!

Take your time

If you’ve rushed your plan, readers may be able to tell. Always take your time when writing a business plan. It may be helpful to give yourself a break before reviewing your document. Or even better, ask someone outside the industry to look it over.

The key to a successful plan is one that catches the eye of the investor, so get the financials right and make sure you have enough detail on the route to market.

Perfecting your pitch

Once your business plan is complete the next step is to perfect your pitch. The point of your presentation is to sell your product, or if you’re seeking investment, your company.

One pitch does not fit all and every presentation should be tailored to the audience. Your job as a presenter will be to tell a story and excite the viewer. Here’s how you can prepare for your pitch and structure your presentation.

Preparation

Decide every detail in advance – e.g. who will the presenter be? Will there be more than one? Practice the simple things such as handovers and introducing your colleagues. Research your audience and try to anticipate questions; it will impress the viewer if you cover all the important areas before the Q+A session.

If you have a physical product, bring this along for investors to see and actually pass it around the room. Always position your laptop in front of you where you can see it comfortably: this means you’ll not have your back to the audience and are not blocking their view. Aim to keep your pitch to around 15 minutes, as ‘short and snappy’ beats ‘long and drawn-out’ every time.

Structure

Your pitch should have three things: an introduction, main body and conclusion. Use your opening slide to set out a short introduction to the speakers and what you’re pitching for.

Following the main slides, end your presentation with a clear call to action. Try not to fill your slides full of text; a couple of words on screen should set out the subject, which you can further explain as the presenter.

Filming and reviewing your pitch is always a good practice and will allow for small corrections. You should know your subject inside out, but avoid memorising a script, as there can be a danger for brain freeze. If you make a mistake, don’t say sorry – chances are the audience hasn’t noticed so just carry on.

Finally, practice eye contact and aim to sound enthused when discussing your pitch, always remembering the point of your presentation and why you’re there.

InterTradeIreland’s Seedcorn Investor Readiness Competition

If you still don’t feel confident that you are investor ready, why not consider InterTradeIreland’s,Seedcorn Investor Readiness Competition?

Seedcorn is more than just a competition; it mirrors the real-life investment process and helps startups and early-stage companies become investor ready. Throughout the competition, businesses have the chance to receive feedback and advice from real-world investors on their business plan and pitch, as well as the opportunity to make invaluable connections and raise their profile. In addition, you’ll also be in with a chance to win a share of the €300,000 prize fund!

The Seedcorn process is an invaluable learning experience even if you are not successful the first time around. Businesses learn a great deal from the process and many try again the following year. Last year’s winner NUA Surgical did just that – it was the company’s second time entering, following an unsuccessful application the previous year.

So, what have you got to lose? The deadline to enter is 1pm on 28 May 2021,  so find out more about Seedcorn and enter at www.intertradeireland.com/seedcorn

Photo: InterTradeIreland's Connor Sweeney (right) and Shane O'Hanlon