10 Effective Tips Entrepreneurs can Use to Meet Investors

Here are 10 tips overall, five DO and five DON’T…

5 tips to help entrepreneurs succeed in a meeting with a potential investor.

1.  Leverage your network and convince trusted individuals to introduce you to investors. An effective trusted individual is someone investors will listen to. Our investor pool pays attention to:

  • Entrepreneurs whom the investor has backed and made money with, wants to back, or is currently backing.
  • Other investors whom the investor has co-invested and made money with, wants to co-invest with, or is currently co-investing with.

2. We often get asked — where do I look for potential investors?  These three categories of Professional Services Providers are good sources, but hard to reach many times:

  • Attorney
  • CPA
  • Investment Bankers

3.  YOU MUST be able to describe your company and it’s value succinctly and quickly. (Since I hate aphorisms I won’t say “you need an elevator pitch”) However you need to be able to describe your company’s vision in a single phrase or sentence. I.E. Groupon is a deal-of-the-day website that is localized to major geographic markets in the United States and Canada.

4.  YOU MUST have a short, concise investor presentation. It needs to include; deck that tells a compelling story about your team, product, traction, and plans. (see “5 things not to do, #1) Email me at  larry@altusalliance.com for the template we recommend.

5.  YOU MUST know your financial/revenue model and the assumptions behind the model backwards, forwards and in your sleep.

5 Things You Must NOT Do When Pitching Investors

1. DO NOT send business plans, we don’t read them.

2. DO NOT spam investors with your business plan, see above

3. DO NOT send business plans attached to items you think will get our attention like steaks, gorillas, coconuts etc. It makes our office smell and we will NOT get back to you.

4. DO NOT ask us to sign an NDA — we won’t sign one. We see far too many deals each month.

5. DO NOT tell us about “sweat equity” when asked how much of your own money did you put into your venture.  We like when you have your own money in the deal.

Of course, you’ve probably heard many of these things before.

Author: Larry Chaityn

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