Know the pre-planning requirements before an investor meeting Have you spent sleepless nights conceptualizing your business idea? Or do you have a billion-dollar idea but don’t have the money to make it happen? Well, then your entrepreneurial journey has just begun and you have successfully taken the first step. Investors are perpetually ready to fuel the jet engine of some great business ideas, and the right one for you can really take your business to the next level.
- However, presenting your idea to investors is complicated, and you may not know when it can go wrong. Here is some of my experience that I think will add value and help you generate a valuable partnership during your first investor meeting.
- Prepare a presentation: Your presentation should categorically indicate the key aspects of your business and product. Everyone likes to read a document while you speak. A well-presented document shows the hard work and gives the impression that you are well prepared for the meeting. The first three slides need to be brilliantly crafted to grab the attention of potential investors. You can also include some visual graphics and images. On top of that, it also ensures that if either side loses a point in the discussion, it’s there on the deck.
- Tell your story: When you pitch your idea to investors, you can tell a story. Humans love stories, they inspire them. A great story will instantly connect you to potential investors and improve your game. When you tell your story of how and why you started, it shows your passion. Show if you are willing to go through it. Startups will have more lows than highs early on and you need to show your passion and commitment to your product.
- Team: Investors generally not only invest money in your idea, but also invest in people who will execute the idea. Talk about the different members of your team and their core competencies, how they form a MECE (which are mutually exhaustive collectively), their previous work experience, knowledge of the industry, etc. Pedigree and bond are both equally important.
- Most investors have seen cases of founders arguing with each other. Tell the investor how long you have been working together. A solid history of collaboration is always beneficial as it allows the investor to build trust in the team.
- Competitor / Industry Updates: every industry has competition, no matter how exclusive your services are. To conclude a deal, before your first meeting with investors, prepare a list of your competitors and show how different you are from them. Also, prepare a roadmap that projects how you aim to manage the competition.
- Size of the market: Ratings are inflated – you’re a money-burning company right now in all likelihood (if you incorporate your salary). So they are investing in you by capturing a huge market and actually justifying the slight premium in valuation they might be paying right now. They need to see a good, big advantage in your business model.
All in all, be honest with your potential investors. They seek integrity in the people they are supporting. It is recommended that you do these tasks before going to an investor meeting to have a good chance of raising funds from investors.
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