Hello, everyone. This is Alejandro Cremades, and today we’re going to be talking about
how to prepare investor meetings. Let’s face it; the investor meetings are super nerve-wracking.
You don’t know what you’re going to be encountering, who is going to be in front
of you, what you need to prepare. So, there are many ingredients that you need to have
in place in order to really nail it. Today, we’re going to be covering everything in
detail, so let’s get into it. The first thing is that you really want to
do the research here. Before you enter into that room with the investor, you want to know
the hobbies that they’re into, the skill sets, the experience, the expertise, where
they’ve worked in the past, and have a clear understanding on the background of this investor
because here is the thing: at the beginning, it’s all about that personal connection
rather than you entering the meeting room and shoving your pitch deck down the throat
of the investor, you need to have that personal relatedness, that meaningful relationship
that you can start to build there because, ultimately, investors want to invest in you.
They want to invest in your business, too, and help you build it, but they need to like
you. With that being said, you want to understand what they’re tweeting about, what groups
they’re a part of on LinkedIn, and things where you can find a common interest that
you can go over during your meeting at the beginning.
Next, you want to make sure that you have your pitch deck in place. You want to have
those 15-20 slides that you can showcase to the investor. Also, when you’re meeting
in person, you want to make sure that you have a pitch deck that is a little bit more
visually oriented with more visual appeal to it, versus the pitch deck that you would
be distributing via email, which has a bit more information.
Essentially, you can actually use the pitch deck template below that founders are using
all over the world to raise millions. I think you will enjoy using that pitch deck, so you
don’t start from scratch. Next, you need to be ready to be challenged.
The investors are going to challenge you. They’re going to challenge your assumptions.
Those are people that are speaking with your competitors, that are already doing research
on your market, on your segment, and you need to be authentic.
Don’t try to make stuff up. If they’re asking you a question that you’re not sure
about, don’t make it up on the go. Just say, “Thank you so much. If it’s okay,
I will follow-up with you on that.” Later in the day, you send them an email, and you
thank them for their time, and you also add whatever that question is around numbers that
you didn’t know on the spot and that you want to follow-up with.
Again, you need to know your assumptions; you need to know your projections, your numbers
over the course of the next three to five years, and be ready to answer the tough questions,
and be authentic. Don’t try to be superficial; just give them the answer that they want.
It may not be the best answer, but you’ve got to give it anyway.
Next, you want to know your limits, especially when it comes to valuation. The investor is
going to try to ask you the tricky question, “What do you think the value of your company
is?” Here, you definitely do not want to negotiate against yourself. What you want
to do here is, you need to let them talk first. Basically, what you say is that based on the
market, Company A to Company C that are your competitors, direct and indirect – maybe
they’ve raised between a range from x to y, so you’re keeping it a little bit broad.
Then, you also say that you really believe in a partnership where there are two parties
that win versus one that loses, which is what happens in a negotiation. And you’re basically
putting the ball back on their court because the problem here is that the minute that you
through a number, they’re going to try to negotiate you down. So, if they come up with
a number first, you can actually negotiate them up from there, and that’s why it’s
very important that you don’t negotiate against yourself.
Then, you really want to make a very good impression. Let’s face it. You don’t want
to be late; you want to be on the dot, really. And also, you want to dress nicely. You don’t
need to dress up with a suit and a tie, but perhaps business casual with maybe a blazer,
or a shirt and trousers, and then also shoes. They’re going to look you up and down; it’s
the way it is. Also, again, you really need to be on time. Be on time; really be respectful
of their time, too, even if they make you wait because these people are busy. Just try
to be there. Don’t try to hold them accountable for being late or any of that stuff, and just
try to make it a smooth-type of an initial meeting.
With that being said, hopefully, you liked this video, and if that was the case, make
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have a community of founders all over the world, helping each other, and I think you
will find a lot of value in it. Thank you so much for watching.