So, you have a presentation with an investor. What do you tell them to get them to invest?
- What is the problem you are solving? Is this a problem worth solving for many? What is the pain with this problem? What inspired you to solve this problem?
- What is your solution to the problem? Is it faster? Cheaper? What makes your solution better than all others?
- How do you make money? Product and/or service? What are you going to charge? One-time sale or recurring revenue?
- What is your marketing strategy? Who is your ideal customer? How will you reach them? Consumer/B2B? Direct to consumer or through sale channels?
- Who is your team? Why can they execute? What is their experience? Have they raised capital? Had an exit?
- What is your traction? Sales, profits. Customers. Partners. Press.
- What is your ask? How much money are you looking to raise? How are you going to spend this money (use of proceeds). What milestones can you reach and when post funding? Include money contributions from founders and prior investors. You may be asked the terms of offering but be prepared to negotiate.
Answering these questions should get you past your “first date” with an investor and hopefully provide the opportunity to move on to due diligence and a close with an investor. Good Luck!
About the author:
Scott Kelly is founder and CEO of Black Dog Venture Partners.
Black Dog Venture Partners is a business accelerator that provides access to funding through our network of 13,000 investors, business development through our network of 40,000 business partners, sales/marketing and executive coaching services for disruptive companies.
BDVP also hosts their VC Fast Pitch Events which connects startups with the nation’s top investors.