What to include in a funding pitch
Finance & Funding
Key learnings
- A funding pitch may be required when you approach an investor or loan provider for funding.
- The pitch should be tied to a specific project that you will deliver as part of receiving funding.
- Investors will expect to see how your current financial position matches up with future projections.
If your business is looking for funding, you may need to prepare a funding pitch. This could be presenting to a group of investors you’re hoping will take a stake in your business or for a meeting with a bank manager about a business loan. Whatever the purpose, having a clear proposal to present with and refer to will keep you on track and make you seem credible to the funder. In this helpful guide, we talk through what you need to include in your funding pitch.
A funding pitch can take many forms depending on the type of funding you are asking for.
If you’re applying for a business loan, for example, there will likely be an application process where you have to provide specific information and meet certain criteria.
A pitch to a group of investors, on the other hand, could look quite different, allowing you to be more creative.
Whatever the context, there are a number of things you should be able to communicate effectively in order to make a compelling case for funding. Click the headings below to read more.
1
Business overview
The first thing you’re going to want to include is an overview of your business covering what it does, where it sits within the market and how it is run.
This helps any potential investors and creditors understand what you’re trying to achieve and the journey you’ve been on up until this point.
Similar to the executive summary in your business plan, the business overview should hit on the problem your company solves, who your customers and competitors are and how you make money.
2
Project outline
The core of your funding pitch and the reason why you are speaking to funders should be the business project that you need funding for.
Investors will expect you to be requesting money for a specific purpose, so including a full breakdown of the project you will deliver is an integral part of your proposal.
You should include all the estimated costs involved, what resources you will be able to commit to it and what you forecast as being the return on investment in the future.
Things like equipment purchases, new premises, staff wages, training and development should also form part of the mix.
If it’s a new product or service or exploiting a gap you have found in a particular market, make sure you illustrate the scope of the opportunity in detail and essentially sell your vision to the investors.
Above all, you need to demonstrate your investment potential and explain why you deserve funding.
3
Current position
Once you’ve outlined the project you plan to deliver and explained the scope of the opportunity, you should then provide a window into where your company is currently from a financial point of view.
This is very important where investors are concerned as they will want to cross reference your current financial performance with the projections you have given in the project outline.
Make sure you know all your financial information – including current turnover, cashflow and profitability and make sure you’re prepared for this to be scrutinised by the funder.
4
Current team
Just as important as the financial position of your business are the people who are going to be delivering your project and managing your business following the investment.
With that in mind, write a brief bio of each of the key people in your team, talking about their experience and achievements and how they are on board with your plans.
You can talk about the company owners/directors, but also discuss colleagues on the ground who will be responsible for the day-to-day running of the project.
5
Demonstrate viability
Ultimately, what you have to achieve with your funding pitch is the viability of your business and the new project you need funding to deliver.
Providing an overview of your business, a full breakdown of your spending plans and a window into your financial records should go a long way but to instil confidence in the eyes of the funder requires you to bring all this together to make yourself look and feel like an attractive investment opportunity.
A good way to do this is to think of any questions investors and creditors might have after reading your proposal and put down some answers to show that you are aligned with their way of thinking. Put yourself in the shoes of the people you are asking for funding.
6
Know your audience
The last thing to say on funding proposals is that they should not remain universal or static, but rather should be tailored to the particular investor or creditor that you are speaking to.
Adapt and increase certain sections depending on your audience.
7
Presentation
Whether you’re making your pitch in person or within a written document, remember presentation is so important. The funders will be looking for reassurances that they are going to get results from their investment, and you need to instil confidence. Practice your pitch a few times so that you’re more comfortable when presenting it. Or, make sure you check your written proposal for any errors.
Next steps...
- Sit down with your team to consider your investment needs and build a proposal that you can discuss in your funding pitch.
- If you need some guidance on what finance you need, check out our article on understanding the different types of finance.
- Gather any information you might need and put together a statement with your latest financial performance and projections included.
- Find potential investors and lenders using UMi's Funding and Grants Finder.