11 Ways B2B Tech Companies Can Better Appeal to Investors

Whether you’re a startup or an established business, if you want to attract investors, you need to show them that your company is a good investment. B2B businesses in the tech space are often well-positioned to do this, as technology is one of the most dynamic and innovative industries out there.

However, there are certain challenges that B2B tech companies face when trying to appeal to investors. For one, the industry is highly competitive, and it can be difficult to stand out from the crowd. Additionally, many investors are risk-averse when it comes to tech investments, as the industry is known for its volatile nature.

So, how can B2B tech companies better appeal to investors? In this article, we’ll share 11 ways you can do just that.

1- Define what you do in simple terms

One of the big mistakes that B2B tech companies make is getting too caught up in the details of what they do. When you're trying to appeal to investors, it's important to be able to explain your business in simple terms that anyone can understand. Take a step back and figure out how to distill what you do down to its essence.

Investors and people thinking about providing capital to startups want to know a couple of things: the market opportunity, the product, the traction to date and most importantly, the team. Being able to define what you do is one of the important pieces of the puzzle for entrepreneurs. 

2- Know your audience

Before you start pitching investors, it's important to take some time to understand who your audience is. Not all investors are the same, and each one will be looking for different things in a potential investment. By taking the time to understand what investors are looking for, you'll be in a much better position to appeal to them.

Some things to consider include:

-What stage of investing are they in?

-What industries do they usually invest in?

-What size investments do they typically make?

-What is their investment timeline?

-What kind of companies do they usually invest in?

3- Do your homework

Once you've identified your target investors, it's important to do your homework and learn as much as you can about them. The more you know about an investor, the better positioned you'll be to make a pitch that resonates with them.

Some things to research include:

-What companies have they invested in before?

-What industries are they interested in?

-What size investments do they typically make?

-What is their investment timeline?

-What kind of companies do they usually invest in?

4- Tell a story

One of the best ways to appeal to investors is to tell a story about your company that they can get behind. Investors are looking for companies with a compelling narrative that describes the problem you're solving, the market opportunity, and why you're the team to do it.

Your story should be clear, concise, and easy to understand. It should also be differentiated from the competition. If you can do all of that, you'll be well on your way to appealing to investors. Investors want to see a startup that has not only a great product, but also a clear vision for the future and a coherent narrative about why they're the team to make it happen.

5- Have a great product

Of course, no matter how great your story is, it won't matter if you don't have a great product to back it up. Before you start pitching to investors, make sure that you have a product that is compelling and differentiated from the competition.

Investors are looking for companies with a great product that solves a real problem for its users. If you can show them that you have a product that meets those criteria, you'll be in a much better position to secure funding.

One of the major problems in the B2B space, particularly where SaaS is concerned, is that there often is no product at all until very late in the game. This can make it hard to get traction with investors. The product that does come about is often highly similar to competing products, which makes it hard to differentiate yourself in the market.

6- Be able to articulate your value proposition

A lot of investor meetings end early and unsuccessfully because new companies come in without a clear value proposition. They are certainly excited about their idea, but they don't understand how it creates value for potential customers. If you're not able to clearly articulate your value proposition, you're not going to be able to appeal to investors.

Your value proposition should be clear, concise, and easy to understand. It should also be differentiated from the competition. If you can do all of that, you'll be well on your way to appealing to investors.

7- Know your numbers

Investors are going to want to see that you have a deep understanding of your business and its financials. They're going to want to know things like your current revenue, run rate, burn rate, and gross margin. If you don't know these numbers off the top of your head, you're not going to be able to appeal to investors.

Always come into investor meetings with a thorough understanding of your business's financials. Be prepared to answer any and all questions about your numbers. If you can't, you're not going to be able to secure funding.

8- Have a clear understanding of the market opportunity

Investors want to see that you have a clear understanding of the market opportunity for your product. They're going to want to know things like the size of the market, the growth rate, and the key trends. If you can't answer these questions, you're not going to be able to appeal to investors.

To prepare for investor meetings, make sure that you have a clear understanding of the market opportunity for your product. Know the size of the market, the growth rate, and the key trends. This will show investors that you're serious about your business and that you have a good chance of success.

9- Have a convincing go-to-market strategy

Your go-to-market strategy is going to be one of the most important things that investors consider when deciding whether or not to invest in your company. They want to see that you have a clear plan for how you're going to reach your target market and that you have a realistic chance of succeeding. If you don't, you're not going to be able to appeal to investors.

When preparing for investor meetings, make sure that you have a clear and convincing go-to-market strategy. Know your target market and have a plan for how you're going to reach them. If you can do that, you'll be in a much better position to secure funding.

10- Have a strong team

Investors want to see that you have a strong team in place to execute on your business plan. They're going to want to know things like the experience of your team, the roles that they play, and how well they work together. If you can't answer these questions, you're not going to be able to appeal to investors.

It's always a good idea to bring your key people into investor meetings so that investors can meet them and get a sense for who they are. This will go a long way in convincing investors that you have a strong team in place.

11- Have a clear understanding of your competition

Investors are going to want to see that you have a clear understanding of the competition. They're going to want to know things like who the major players are, what their market share is, what their strengths and weaknesses are, and how you stack up against them. If you don't have a clear understanding of these things, you're not going to be able to appeal to investors.

The good news is that this is something that you can prepare for in advance. Make sure that you have a strong understanding of your competition before you start pitching to investors. That way, when they ask you questions about the competition, you'll be able to answer them confidently and without hesitation.

11.1- Have a clear understanding of your business model

Investors are going to want to see that you have a clear understanding of your business model. They're going to want to know things like how you make money, what your margins are, and what your growth potential is. If you don't have a clear understanding of these things, you're not going to be able to appeal to investors.

Conclusion

B2B tech companies are often in the position of having to secure funding from investors in order to grow and scale their businesses. In order to appeal to investors, it's important that you have a clear understanding of what they're looking for. This article has outlined 11 things that investors want to see in a B2B tech company. If you can show them that you have these things, you'll be in a much better position to secure funding.