Raising funds is never easy, especially in today’s market. Statistics reveal that 30% of the deals are generated by Venture Capitalists initiating connections with budding entrepreneurs.
The primary step in securing high investment is making a good impression.
Learn how you can charm your investors in the first meeting without losing credibility.
1. Understand Investor’s Perspective
Investors want founders to be ready for the fundraising process, even if this is their first business.
This assumption is fair, given there is more content available than ever before in the form of blogs, podcasts, essays, and books.
Prefect your business plan that describes the techniques you’ll use to expand and thrive, as well as the amount of funds you want to spend on each section.
2. Curate A Convincing Pitch Deck
Your pitch deck should include sections on your vision, current traction, market prospects, income potential, team members, competition research, and how you differentiate yourself, among other things.
Use photographs to ‘show’ rather than ‘explain,’ and take care of the style, typefaces, and alignment. A compelling tale combined with good statistics may be extremely persuasive.
Try to provide your pitch deck to all meeting participants ahead of time so they can examine it.
3. Do Your Research
A wonderful concept might fail in implementation if another firm has had great success with a comparable approach.
Investors understand this and expect business owners like you to provide detailed competitive analysis.
You should describe how you differ from rivals and how you plan to prosper in your business despite the clear existence of another major player.
4. Own Your Agenda
Good investors let the entrepreneur lead the pitch. Start the meeting with a clear agenda and properly manage the timeline; you’ll come out as very professional.
In contrast, getting right in and running over the allotted time adds unnecessary stress to both parties.
5. Nail Your First Impression
Read about things that may wow your investors and what might turn them off.
Try to incorporate all these characteristics organically from the minute you meet your potential investors.
Aside from that, take note of these three pointers on priority:
· Arrive a few minutes early with your e-visiting card.
· Make sure you’re dressed in formal attire.
· Maintain an upbeat, approachable tone throughout the discussion, especially when answering difficult queries.
6. Be Mindful Of The Questions
Expect to be asked how your startup outperforms its competitors in addressing a specific problem.
Be prepared to answer inquiries regarding your development potential, your team’s credentials, and your current traction.
You can also be asked how the investor’s finances will affect your goals. Make sure to prepare your responses to these questions in advance so you are not caught off guard.
7. Be Open To Criticism
Instead of being defensive in the face of criticism, view your investor’s suggestions as opportunities to develop.
For example, the investor may believe you should reclassify your team’s duties or create new critical roles, such as a Chief Marketing Officer.
8. Say When You Don’t Know
Investor criticism frequently stems from the investor knowing something you don’t. It is a terrible idea to assume that your expertise or knowledge invalidates the investor’s viewpoint.
Instead, acknowledge that your investor has better experience in the subject matter and express thanks for their views.
Demonstrating humility and a willingness to accept makes you a far better investment than a stubborn know-it-all who refuses to take advice.
9. Research Your Investors
Prepare for your meeting with investors by researching their website, LinkedIn profile, blog entries, and media publications.
It will allow you to express your expectations for added value while also asking tailored-made questions to gather information that is important to you.
10. Immediately Follow Up
Sending a ‘thank you’ note to the meeting’s attendees is a great way to wrap things up.
You may send an email with a meeting summary that contains the agenda, any notes, follow-up questions, and future steps.
Include one or two significant lessons, as well as bullet points outlining the next actions. Keep it as short as possible: no more than 35 words.
Conclusion
Investor meetings may be daunting. These 10 ideas will help you prepare for a productive and successful investor meeting, ensuring you put your best foot forward for this vital occasion. Now, it’s time for you to seize the opportunity! All the best.