Getting a meeting with an investor is not an easy task, but it’s the easiest part in the whole fund raising process.
So you’ve managed to set up a meeting. Great. In this post we will explain how to deal with investors from the moment you left the house to the meeting, through the handshake and what happens after the meeting.
1. Clothing – Respect the investor. If you meet a single investor, a nice jeans and a shirt will do. If it’s a panel, put something nicer.
2. Get to the meeting 10-15 minutes before time to insure that everything is ready, logistically speaking.
3. The start of the meeting – after the handshake, first start presenting yourselves and the people involved in the venture in a concise manner. The investor only cares about informationrelevant to the venture. For example, if it’s a software startup, highlight the experience you have in this field.
4. The presentation – there are several guidelines to how to build and present a presentation.
4.1. Talk slow and clear
4.2. When you talk about the product, do not explain its features, only its core
4.3. Keep slides design minimal
4.4. If you do not have sales yet, do not present a graph that shows an extreme financial assumption such as $40M in sales in year 3. Experienced investors do not need you to tell them how much money you’re going to make, they can evaluate it themselves. Instead, present the TAM – total addressable market
4.5. Pitch should be no longer than 10-15 minutes
5. After the pitch – give the investor time to ask questions. If he has no questions, either the presentation was perfect or the investor has no further interest in your venture. Show proficiency. Show that you know your market and stand on your values if the investor start asking questions but be open to listen.
In one of our meetings with an investor, he didn’t agree with the price to consumer that we set and said it’s too expensive and no one would buy it. We claimed but it must be premium priced to maintain our branding while giving several examples of different products. Eventually, he aligned with our view.
6. The end of the meeting – do not look too enthusiastic if you heard the investor saying your product Is interesting. The way until a signed agreement is still long. If the investor asks you to send him materials, do so and ask him to sign an NDA
7. Follow up – An investor that said he will contact you and did not after several weeks is probably not interested and a followup mail won’t help. What you can do is try to understand why he decided not to invest and be better prepared for the future.
Until you have a signed agreement, keep looking for investors. We heard many cases where an investor said he wants to invest but at the end decided not to and left the company without funds or new leads.