- Persuade & Raise
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- ♞ Basic Prep for Investor Meeting
What do you need to know before meeting an investor?
I often recommend that founders start to connect organically with investors long before they plan to raise funds. The reality is that most investors like to see a company grow and evolve before they will agree to invest in it.
The challenge with this strategy, however, is ensuring that you still make a good first impression. If you meet with investors long before you are raising, and you are so unprepared that you leave a bad impression, they won’t be interested in learning more, and you may have killed the relationship.
Today I want to talk about the basic things that you need to have prepared before you reach out to an investor. These are things that you can prepare long before you need to raise.
Your Story - You need to know your company’s narrative. Who is the villain you are trying to slay? Why should investors care? Having this story nailed from day 1 will significantly increase your chances of making a positive impression.
Your Numbers - Basic figures like your customers, churn rate, revenue, etc. should be simple to rattle off the top of your head. If you don’t know these figures, it will be a major turn-off for many investors. These are numbers you need to know to run your business, regardless of whether you are fundraising.
Customer Stories - You should have a handful of stories from customers about their experiences and how you helped them solve a problem. These should be real-life stories that demonstrate the value of your business.
In addition to these basics, a few other things I would recommend before you talk to any VC are:
Research them - You should know their thesis and the types of companies that they invest in. Ideally, if you can learn a little about their last 3-5 investments and be able to talk about those companies and how they compare to you, that would be very beneficial.
Have an off-ramp - You know the conversation won’t end with you asking for money, so make sure that you have a different off-ramp to end the conversation. If you have this, then you can set up a future conversation and avoid the conversation before it's a waste of time for both you and the investor. Ideally, if this off-ramp can be you adding value or building social status that would be great.
Do you prep for investor chats? |
Are you looking to grow your business? Here is how I can help:
📱 Book a Strategy Call to get 1:1 feedback on your pitch, pitch deck and/or fundraising strategy. (If you need general startup advice, then reply to this email, and I’ll let you know if/how I can help.)
Onwards and Upwards,
