10 Things You Should Do Before Mee6ng An Investor

Brace yourself, breathe and make a plan!

Raffaele Gaito

About me

Raffaele Gaito

Digital Entrepreneur Growth Hacker Startup Mentor Blogger

@duplikey raffaelegaito.com info@raffaelegaito.com

A brief introduc6on

A brief introduc6on

• Each startup has a different story and background • No rules, only sugges6ons and best prac6ces • Prac6cal 6ps from personal experience

1. Pick the right one

1. Pick the right one

• Several types of investors(e.g. FFF, Angel Investors, VC)

• It’s related to the company stage • It’s related to the amount of money

2. Build a rela6onship

2. Build a rela6onship

• Having an introduc6on is beWer • Ask for a mee6ng only if there is a rela6onship

(e.g. email, call, events) • A “no” is not necessary final • Keep your investor updated

3. Timing is key

3. Timing is key

• Don’t ask for money too early(you won’t get it)

• Don’t ask for money too late(you won’t have nego6a6on power)

• Remember, it’s a long process

4. Perform your own due diligence

4. Perform your own due diligence

• Check the investor’s por^olio • Look for “exits” • Look for “write-offs” • Check the markets • Check the fund

(where the money come from)

5. Communicate with other startups

5. Communicate with other startups

• Very useful in late nego6a6on stage • Ask for prac6cal informa6on

(e.g. support, rela6onship, board) • Try to iden6fy pros and cons in advance

6. Always look for “smart money”

6. Always look for “smart money”

• Investors are not only a pile of money • Try to understand the added value • Check investor’s partners • Check investor’s network • It’s a long-term rela6onship

7. A great pitch is crucial

7. A great pitch is crucial

• Max 10-12 slides • Max 7-10 minutes • Content 6ps: problem/solu6on; value proposi6on;

market; go-to-market; metrics; financials; team;call-to-ac6on; revenue model; exit strategy; etc.

8. Show strong metrics

8. Show strong metrics

• No vanity metrics • Let your numbers speak for you • Know your market and your compe6tors • Always include forecasts • Your forecasts should be op6mis6c, but not too much

9. Ask the right amount of money

9. Ask the right amount of money

• Not too much(you will lose equity)

• Not too liWle (you won’t reach your goals)

• Tip: iden6fy your break-even point • Pro Tip: add 40% to your ini6al idea :)

10. Plan how you want to spend the money

10. Plan how you want to spend the money

• Why do you need an investment? • How are you going to spend the money? • What about your monthly burn rate? • Do you need more investment rounds? • Be pessimist with those answers :)

Conclusions & Takeaways

Conclusions & Takeaways

• No silver bullets, no tricks • Be prepared, make a plan • Be pa6ent • Genng an investment is like a marriage

Ques6ons?

Raffaele Gaito

Digital Entrepreneur Growth Hacker Startup Mentor Blogger

@duplikey raffaelegaito.com info@raffaelegaito.com