Communicating with Investors After Your MVP: What You Need to Know

Reaching the milestone of launching your Minimum Viable Product (MVP) is an exciting achievement in the development of any product or service for any startup. It’s a sign that you’ve made progress and a way to prove that your concept works and it has the potential for future growth. So now you’re ready to take your business to the next level! So what’s the next step? One option is communicating with potential investors. It can be pretty daunting to think about communicating with investors after your launch, so in order to do this effectively, it’s important to understand what investors want and how best to communicate your vision. Here are some useful tips on how to communicate with investors after launching your MVP. 

How to Communicate with Investors After Reaching MVP

Tip #1 – Be Prepared

Before engaging in any conversations with investors, make sure that you have all of your facts, figures, and necessary information available when speaking with investors. This includes a clear understanding of what your product or service is, who the target audience is, and how much funding you need. Have your financial projections prepared ahead of time and make sure that they are accurate and realistic based on current market conditions. You should also be prepared to discuss the amount of traction your MVP has gotten thus far and any projections you have for future growth. 

Additionally, it’s helpful if you can provide concrete examples of how your MVP has been received by customers thus far as well as any additional strategies for growth or improvement upon the initial iteration of the product.  Having all of this information ready will demonstrate that you are well-prepared and serious about getting investment for your company. 

Tip #2 – Be Clear About Your Vision

You need to be clear on why you’re reaching out and what specific objectives you would like to accomplish in each conversation. Are you looking for funding? If so, how much do you need? Do you have a specific timeline in mind? These are all questions that should be answered before beginning to communicate with potential investors. 

Investors want to know that they are investing in something worthwhile—something that has the potential for success. When communicating with investors, be sure to clearly articulate what problem your product or service solves and why there is a need for it in the market. It's also important to show them how their investment will help move the business forward in terms of growth and development. Demonstrating these points effectively can go a long way in convincing potential investors that investing in your company is worth their time and money. 

Tip #3 – Create a Pitch Deck 

One of the first steps when preparing to communicate with investors is to create a pitch deck. A pitch deck is essentially a presentation that outlines the features of your product or service, explains the market opportunity, and gives investors an idea of what they can expect from your company in terms of returns. The goal of the presentation should be to convince potential investors that investing in your company is worth their time and money. Your presentation should be concise, professional, and easy to understand. 

Tip #4 – Know Your Audience 

Before you can begin to communicate effectively with investors, it’s important to understand who they are and what their expectations may be. It’s important to understand who you are talking to when presenting your pitch deck. Different types of investors will be looking for different things when evaluating investments, so make sure you tailor your presentation accordingly. Do some research on industry leaders, learn about their backgrounds, and read up on recent successes or failures in the space. Your MVP is more than a singular product, depending on who you’re speaking to, their background, and interests, it can be presented in different ways to appeal to that particular investor (or firm)’s interests, be it the industries they usually work in or their general preference in regards to presentation style. 

Knowing your audience will help make sure that you tailor your pitch accordingly. For example, angel investors may be more interested in the long-term potential of your company while venture capitalists may be more focused on short-term gains. Understanding who you are speaking to will help ensure that you present information that is relevant and interesting to them. 

Tip #5 – Be Prepared for Questions 

Once you have presented your pitch deck, chances are there will be questions from potential investors about various aspects of your business model or product/service offerings. Make sure you come prepared by doing research ahead of time on the types of questions they may ask so that you can answer them confidently and accurately during the meeting. This shows them that you have done your homework and will build trust between both parties as well as increase their confidence in your ability to run a successful business venture.  

Tip #6 – Be Proactive

Don't wait for investors to come knocking on your door! As soon as you launch your MVP, start actively seeking out potential investors who may be interested in helping finance the next phase of growth for your business. Networking events, pitch competitions, conferences, and other industry gatherings can provide great opportunities to meet new people and get yourself out there as much as possible so that more people become aware of what you're doing. You never know who might be looking for a great investment opportunity!  

Conclusion

Overall, having a successful communication strategy with potential investors is key for any business looking for success after launching an MVP. By following these tips on how to communicate with investors after launching an MVP, entrepreneurs have a better chance of successfully securing additional funding for their businesses. Once this stage has been achieved, communicating with potential investors becomes easier because now there is evidence that proves that the concept works and can potentially yield returns if developed further. 

Thoughtful preparation is essential before approaching any investor and understanding who they are and what their expectations may be will go a long way towards helping ensure success after the launch of your minimum viable product. Knowing what information investors want upfront makes it easier for entrepreneurs to lay out their vision confidently while being proactive helps ensure they get maximum exposure when they are looking for prospective investments.

With these tips in mind, entrepreneurs, startups, and inventors should feel confident about crafting meaningful conversations with potential partners about their product or service—whether it’s seeking advice or investment capital—and presenting themselves professionally in order to achieve their goals! By preparing carefully and using smart networking strategies, entrepreneurs can leverage their MVP launch into investor meetings which could lead them to success. Good luck!