Dialing for dollars

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  • 1.Pitching to Angels and VCs

2. Approaching Investor Best way to get in is throughentrepreneurs reference Investors trust people theyvebacked in the past Usually know within 10 minutes Prefer founding CEO and with ateam of founders Dont approach VCs that arefunding competitors Angels are ok often invest inseveral companies within the sameindustry 3. Approaching InvestorDont expect a Yes after thefirst meetingBuild a relationship with the investor Dont send a long email / business plan If you have no reference, it will take amonth of interactions (in-person andemail) The more time you spend with aninvestor, the more likely he is to invest inyou The goal of each meeting is to get thenext meeting Be patient 4. Before the Pitch Skip the associates and go straight to partner level Dont ask investors to sign NDA Learn the VC language KPI, business models, termsheet language Create your pitch deck Practice your pitch in front of peers and otherentrepreneurs Be confident not arrogant 5. Creating the Pitch Deck Use simple bullet lists 45 min presentation, 15 min Q&A Show a demo Iterate after every pitch 6. Standard Pitch Structure1. Problem 5. Team2. Solution/Demo 6. Competition3. Market Size 7. Business Model4. Traction 8. Funding 7. Logistics Dont be late; arrive early to setup Bring equipment and backups (cables, adapters, USB drive, etc.) Dont show up alone; bring 1-2 team members Give each person a role; investors want to see good teamwork 8. During the PitchThese are the factors investors look for: Traction Team Social Proof (who else is investing?) Product Market Many entrepreneurs fail to highlight the team Investors prefer an A team with a C idea, over a Cteam with an A idea 9. During the Pitch Entrepreneurs often forget to fully discuss theproblem and skip straight to the solution If you have a clear problem, it is possible to pivot ifyour solution fails If you only have a solution, the entire company fallsapart 10. During the Pitch Dont go overboard on numbers and projections Dont hide or downplay the competition Emphasize what makes you better or unique Dont be too attached to your business plan; showthat you are open to new opportunities 11. Demo Dont show up without a demo ormockup Dont be afraid of runningovertime on the demo especially ifthe investor shows interest Dont point out problems/bugs inyour demo, just move on Most importantly, be passionateabout your product 12. ValuationValuation is not a science, based on supply-and-demandin current market Your company is worth as much as you can convinceinvestors its worth, be ready to justify your price 13. Q&A Take notes during the meeting Dont mention which investors have rejected you Dont dodge questions, answer directly and honestly Investors will only invest in people they can trust 14. After the Meeting Send Thank You email on the same day Prepare for rejection