Why and How to Prepare for Investor Meetings
Many founders don't bother preparing for investor meetings or researching investors.
This is a BIG MISTAKE that puts them at a BIG DISADVANTAGE.
Here is a Complete Guide for Founders on WHY and HOW to PREPARE FOR INVESTOR MEETINGS.
1. WHY SHOULD YOU PREPARE FOR AN INVESTOR MEETING?
Let’s start with the obvious. Chance favors prepared minds - you are ALWAYS better off preparing.
By preparing you gain INFORMATION ADVANTAGE.
Investors judge your ability to research - if you don't bother to research them, would you bother to research competitors?
2. RESEARCH FOR CONFLICT
Even before the meeting, do your best to make sure the investor didn't already back your competitor.
Investors WILL NEVER invest in your company if they backed a competitor who is active.
3. RESEARCH THEIR SOCIAL PRESENCE
Look at the Investors Blog, LinkedIn, Twitter, YouTube - what are they like as a person? What do they care about?
Small bits give you INFORMATION ADVANTAGE and UNDERSTANDING of who you are about to meet ahead of the meeting.
4. FOR ANGELS
Research their Linkedin & AngelList. Look them up on Crunchbase - try to infer:
Check size
Check velocity
Which verticals they are investing in
You should be researching this before even getting the intro, but for sure before the meeting!
5. VC - EXPERIENCE AND TENURE
For VCs, start by mapping out their title - are they a General Partner (GP) or a Principal or Associate?
How long have they been at the firm and overall in venture?
This will help understand their ability to GET THE DEAL DONE!
6. VC - CAPACITY
This is nuanced and critical.
Some VCs don't have bandwidth because they are already in too many deals.
Look at the number of investments of THIS VC relative to AVERAGE in the firm.
If VC is close to capacity -- hurdle will be higher.
7. VC - INVESTMENTS
Study investments carefully. What kind of companies, when was the last investment, what check size do they right - look up Crunchbase.
This will give you an idea of what investor likes, frequency of checks, & check size.
Think - are they READY FOR A NEW INVESTMENT?
8. VC - SPEAK WITH FOUNDERS THEY BACKED
If this is a second meeting with a PARTNER or an ALL PARTNER presentation, FOR SURE speak with founders they backed PRIOR to the meeting. In general, try to backchannel PARTNERS through your network before meeting them.
9. PREPARE THE SCRIPT & DEMO
Founders should not be meeting investors without fully rehearsing what they are going to say, make sure to fully prepare your pitch.
Riffing, rambling, being disorganized is a SURE WAY TO GET A NO.
Stick to the talking points. Be ready to demo.
10. PLAN WHO WILL SAY WHAT
If there are several founders in the meeting:
Be sure there is a clear lead
Rehearse passing the buck to each other
Show you are an awesome team by sharing the pitch responsibilities
Be engaged even when you are not speaking!
11. PREPARE QUESTIONS FOR INVESTORS
Make sure you research the investor and the firm and have specific questions.
Must ask:
What are the next steps? (Every single meeting!)
What’s your check size?
What are your concerns?
SUMMARY
Chance favors prepared minds, nerds win!
Research every single investor - this gives you advantage and shows your chops and care
OVER prepare for VC meetings
Have YOUR questions ready!
