Think like a sponsor

You are pitching a sponsor whether a program officer from a foundation, science agency or a private investor. Instead of thinking about you, think about them. Everything then changes, in your favor.

What is the sponsor most interested in? We can answer this question with a few observations from our experience being both funding seekers and givers.

Contrary to popular belief, the sponsor is not thinking, “Is this venture going to make a lot of money?” or “is this venture going to have an impact?” That is the simple question that most think they are answering, but they are missing the crux of the investment process.

What the sponsor is really thinking is, “Is this venture the best next investment for me and my fund?” That is a much more complex issue, but that is what you have to pitch. So, you have to figure out how your venture fits with other investments the individual sponsor has made and the investments the sponsor is chartered to make.

The sponsor is also thinking, "Will my investment increase your venture's capacity to be self-sufficient or it's attractiveness to other sponsors?" Most sponsors do not take on a permanent funding commitment. So, you have to present milestones and say how you will use the requested investment to accomplish the milestones, in order to move the venture from one stage to the next, and meet the sponsor's objectives.

Investors like it when you're making just enough to pay your program expenses. It shows you've thought about sustaining your venture, instead of just working on amusing technical problems; it shows you have the discipline to keep your expenses low; but above all, it means you don't need them.

You may still need investment to make it big, but you don't need it next month. The reason they like it when you don't need them is because that quality is what makes ventures succeed.

The investor wants to say "Oh, those folks can take care of themselves. They'll be fine." Not "those folks are really smart" or "those folks are working on a great idea."