In September 2019 I had the opportunity to participate in the BSV Pitch Day event at the CoinGeek Conference in Seoul. Being a new entrepreneur, this event was one of the best learning experiences I’ve had in my life.
My schooling and education had prepared me to solve math equations, but there wasn’t a lesson plan on what to tell prospective investors on why they should invest in my company. After talking with other entrepreneurs and the investors that were present, here are some lessons I learned:
Understand your target market
This is one of the most important things a Bitcoin entrepreneur can understand when trying to sell an investor on your idea. Bitcoin enables many new and exciting business models that have never been possible before, but all because you have an idea that can benefit from that business model doesn’t mean it is valuable to a potential investor. It isn’t enough to take an existing business model and replace the internet with a blockchain. Know why your idea can only be executed with the BSV blockchain, and explain why your solution it set apart from existing competitors.
Have projections
An investor wants to know how they are going to make their money back. Project out your revenue streams and explain why your business model can get an investor a return on their investment.
Ask for the right amount of money
This is easier said than done, right? Unfortunately this article nor Google will give you the right answer to this one, especially if you are in an early stage. But, think about the following things:
- How much runway do you need?
- Don’t ask for too much
- Investors aren’t there to give you a payday
- Don’t ask for too little
- Investors don’t want you to come back asking for more money.
- Not only is this a pain on their end, but this is time you are fundraising instead of building your product.
- Investors don’t want you to come back asking for more money.
Most of the investors at a BSV pitch event are there because they think Bitcoin SV can succeed. When transactions increase on the BSV blockchain, everyone wins. How will you increase transactions on the BSV blockchain?
Why Bitcoin?
This one is sometimes overlooked by people since we are so used to talking in the BSV bubble. Yes, we all agree that a distributed global ledger is cool, but saying you’re going to build <insert Fortune 500 company> on Bitcoin doesn’t explain why you need Bitcoin to accomplish this goal. What does Bitcoin provide that wasn’t possible before? How are you going to compete with existing companies and their customers that don’t know or care about Bitcoin? Why should someone who doesn’t understand Bitcoin care about your business?
Stand out
Investors are going to see a lot of pitches throughout the day. You may even be last on the schedule. Have energy and excitement and engage the audience. Have them remember you!
The next BSV Pitch Day event takes place in London on February 18, 2020. Entrepreneurs of all ages will be seeking investment from the leaders in the blockchain industry to build businesses and applications on the BSV blockchain.
Good luck!
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.
