There are many articles focusing on how to create a perfect pitch deck, but few that really give you the inside look on how to behave in your big investor meeting. These guidelines will help significantly improve your odds of getting funded.
- The meeting should be a dialog. No one wants to listen to a 50-minute monologue – investors will get super bored. Make your points quickly and let them ask questions. The good talking-to-listening ratio is 60/40 (60% talking, 40% listening).
- Keep so simple so my Grandma would understand. Investors are smart but they don’t know everything. If you can’t communicate your idea in two sentences and simple words that mortals use, your customers may not get it either.
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Every investor has his/her own investment strategy and things they look for in promising companies – but there is a must-pass list of questions that helps them navigate the crowded startup space. Here are the basic steps of company due-diligence that Angel groups use to evaluate the potential investment deal. Keep reading this post
Investing is not easy – every successful investor has a strategy and rules they follow in order to try to minimize the risks and maximize the profits. Here are some rules to follow, based on the advice from Warren Buffett and Steve Anderson (Baseline Ventures).
- Start early – developing smart investing habits now vs. later in life pays out exponentially in the future because of the “magic” of compounding returns.
- Be willing to be different – “you follow the herd, you’re gonna get hurt”.
- Don’t be afraid to risk – one of the biggest mistakes young investors make is allocating too much of their investments in cash or bonds.
- In you don’t understand it, don’t invest in it – complex deal terms, business model you don’t understand, etc. – avoid it. Keep reading this post
It’s important to have an open communication channel to keep your investors informed. Maintaining long-term relationships with your investors is one of the most important parts of maximizing the added value that strategic investors can provide to your business. The communications are best delivered in writing, either through mail or e-mail.
Many early-stage companies choose to provide investor updates on either a monthly or quarterly basis. These periodic updates usually include information about key metrics, traction, and any business issues that have arisen. This update can include links to new articles about the business, information about new partners, team members, opportunities, etc. You also want to notify investors about any current and upcoming issues that the company may face, particularly those that relate to fiduciary duty and organizational impact. Keep reading this post