How Explainer Videos Can Secure Your Company Much-Needed Funding

If you own a company or run one, you know you need funding. You might save up enough money and launch your company. You may also contact family members with cash and ask whether they’ll fund your business entity. You might pay them back with interest later.

You might approach an angel investor and get the money that way. Perhaps a venture capital firm might help you. You can also get a more traditional bank or credit union loan. To do that, you must create a business plan that seems workable and realistic.

You might also use an explainer video. We will explain this concept right now.

What is an Explainer Video?

Explainer videos simplify complex concepts for investors or anyone else who doesn’t yet understand some notion or idea. Explainer videos are concise presentations that companies or individuals make when they need someone else’s understanding regarding some notion. 

Usually, these videos aren’t very long. A minute or two should suffice. You don’t want a two-hour explainer video since you’ll probably bore someone and lose their interest.

Who Can Make an Explainer Video?

Virtually any company with enough money can make an explainer video. You might have an advertising, marketing, or graphic department that can make one for you. You might also hire an outside company or individual to do it.

If you have a larger company with more of an operating budget, having a permanent department or some staff members who can handle these assignments makes sense. Smaller companies without very much money to throw around should hire an outside agency or individual and give them this task.

The company can tell the animators what the video should feature. Generally, the video should explain the concept simply and with visual elements that anyone can understand. A company might also hire a celebrity spokesperson to do the narration. They might appear in the video, or they can just use their voice talents.

You might also have one of your workers appear in the video or do the voiceover narration. Maybe the individual or entity that you show the video doesn’t know this person, but that’s okay. If they’re friendly and can read their lines well, that should work fine.

What Else Should You Know About These Videos?

An explainer video might feature animation, a live-action scenario, or both. You might have someone appear on the screen and talk about the product or service for which you need money. Then, the video might go to animations showing the product or service.

You might also feature images in the video that can help promote the idea. You can show the store shelves where the product will appear. You can show the factories where you will make the products, the trucks and planes you will utilize to ship them, and the workers standing by to create those products or offer those services.

You should make the idea very simple, even if it is somewhat complex in real life. Maybe you are pitching this idea and trying to secure funding for a straightforward concept. If so, anyone can probably understand it.

If you are pitching something more complex, though, you can’t think the person or funding entity watching knows very much about your industry or niche. You must simplify the idea as much as possible to get them on board. Do that by avoiding too much industry jargon.

What Does This Video Do?

The explainer video should generate excitement from the investors watching. You must present an idea with visual elements so that this person or funding entity understands this is a great idea with some viable growth potential.

You must convince them they should get in on the ground floor. Let them know that if they do not give you funding, they’re missing out. They won’t make any money from your idea, and someone else will.

A Common Explainer Video Presentation Scenario

Let’s say you have an angel investor or venture capital firm that you’re targeting. You arrange a meeting because you say you have a great investment opportunity lined up for them. 

You can contact them and set up a time and place. You may also have a digital meeting via a Zoom call or something similar. These digital meetings happen more often with Covid-19 loose in the world.

You have a new product or service that you talk about briefly. Then, you run the explainer video. The video might feature a celebrity spokesperson speaking about the product, service, or investment opportunity.

If you can’t afford one, maybe you have one of your company’s workers talking about what you’re offering. They can read the script you prepared.

You might feature animations that show the product or service. You may also combine live-action and animation. You might talk about the market for this product or service. You can explain that this idea should gain traction, and you just need a cash infusion to help get it off the ground.

You might talk about the market research you have done, indicating this idea can take off once you get funding. You can cite any stats that prove it. You must convince the lending or funding entity to trust you with their investment, and they should see a profit from it very soon.

Will the Video Work?

Explainer videos can work, but you must prove your worth as a salesperson. If you seem nervous, the world’s best explainer video might not do the job. You must show the potential investor you have total confidence. If you can’t do that, you might nominate someone else from your company who’s a better public speaker.

You might also go as a team and present the video. If you have several people from your company come along, you can show a united front. You must get the investor’s interest without seeming desperate. It’s a fine line sometimes, but the explainer video might explain your position more eloquently than you can.