In this excerpt from "Investor Ready," author Julie Barber shares some of the key impacts of raising investment, both during the exercise and afterward.
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Love the the article above, thank you.
Would be happy to share my experience also in few more points.
First and foremost, what you should know is that everybody is looking for a real business opportunity instead of just an idea. So if you can provide any evidence that your idea is a working business (it doesn't have to be revenue, it can be just initial attractions of users) that will be definitely great so consider doing some customer development processes. And that will be a good basement for a future talk with investors.
Secondly, one needs to have a proper investment in materials. I mean, a financial model, and a pitch deck.It is really important! Just because nowadays everything has been forwarded and sent by email. You need to stand out from the rest of the crowd. You need to consider what is that you can deliver to the investor and get you to this second stage of your negotiations. Pitch deck and financial model is definitely the answer.
You might want to think about the design of your copyrighted materials, even if you have the structure content in place. Nowadays design plays an increasingly important role!
And definitely the negotiations are changing, in terms of format from the real time meetings to zoom calls. And ou'll just have an email to chat with the potential investors.
Then you'll be having the increased chances of moving forward with investors.
On top of everything. I would definitely consider preparing a checklist of answers to the questions that will be asked by an investor.
Why? Because if they show any interest in your idea, they will just punish you with a number of questions they're going to ask. No jokes. This can be like 50 to 100 questions about your business, about your market strategy, about your marketing plan, about your sales plan then about your product development plan, about your team, about your traction, and a lot of other things, so you might want to be prepared for that as well. Anyhow, the only thing that you need to keep in mind that you are asking for a certain amount of money. And you need to defend that as much as possible to clearly give an idea of why you're seeking that money. Why you are seeking the sum that you are mentioning in your pitch deck, not more, and not less. And you can just defend everything that you have in your pitch.
Thank you for sharing this valuable information with us!