Notes from 125K Workshop- What Investors Buy

There are3 things Investors Buy

  • A story
  • A team
  • A market
Venture Capitalists and Strategists:
  • are active investors
  • have target investments
  • already know you and/or your company
  • You can get to them easily
Other types of Investors: Friends and Angels

You'll need a Communication Toolbox. This includes

  • A 2 minute elevator speech
  • An investor presentation of 12 to 15 slides
  • An executive summary
  • 1st level of due dilligence
  • A business plan
  • FAQ
The Investor presentation must answer
  • Who are you?
  • What are you doing?
  • How do you plan to make money?
  • What is the market opportunity?
  • What makes the product/service special?
  • What market proof do you have?
  • What can go wrong?
  • How can the investor get money out?
    • An IPO in 5 o 7 years?
    • An attractive buy to another company?
  • Keeo score
    • Get interested people
    • Replace those who pass the opportunity.
  • Find a good lawyer.
  • Everyone in the company must have the same story.
  • You need equity to get debt.
  • Non Recourse Funding: This is merely finance that stand alone by the contract put on it.
  • Put your best foot forward.
    • Show beta sites.
    • Studies conducted/ paid for by the customer.
    • Paying Customer
    • Interested Vendors
  • Note your assumptions
    • Most overlooked aspect
    • Includes
      • Finances
      • Sales Cycle
      • Margins
      • Number of customers closed per quarter
      • Length of time to 1st sale.
    • Assumptions head off investor doubts and questions by recognizing variables
    • Show where you are in your effots
      • A table with
        • Company
        • Title of person spoken to
        • 1st Meeting
        • 2nd Meeting
        • Specs requested
        • LOI

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