Venture capital · Fundraising

what are must haves to take in front of investors/angels?

Nicolas Cabrera Happy Human and Deveoper

October 5th, 2016

I have been testing my hypothesis into the wild for some months and traction/numbers are quite good, now I need money (I don't have) to scale it up.

What are the most have I should take to go in front of an investors/angels/incubator/accelerator?

What are the numbers they expect to see and the questions I should be prepared to answer?

I'm on the live entertaining industry (not porn!).

Thanks!
As a founder, you’re always in fundraising mode (whether active or passive). In this course, we’ll teach you how to successfully raise follow-on capital, establish a valuation for your company, build an investor pipeline for your next round, and more...

Irwin Stein Very experienced (40 years) corporate,securities and real estate attorney.

October 5th, 2016

An investor wants to know that have a chance of succeeding. I always recommend a real business plan. that covers procurement, marketing  and sales.  You should have the key functions covered with good people. You should have a good spreadsheet with projections of real costs. You should be able to demonstrate what it will take for you to break-even and how long it will take.  You should have a very clear idea of how you will spend the money that you are looking for. And you should be able to tell investors how you expect to cash them out and when.  No one expects that you will hit it all on the nose, but it is important to demonstrate that you have a command of your business. 

Joseph Wang Chief Science Officer at Bitquant Research Laboratories

October 6th, 2016

One question that a shocking number of pitches fail to answer is "how much money do you need, what do you need it for, and what are you planning to offer in return for that money?"

Also past numbers are more important than future projections. Future projections tend to be totally meaningless, and most every pitch that I've seen that involves future projections has exactly the same projection (we lose money in years one and two and in year three we will be google).

Cash flow is probably the more critical thing that investors are looking for (i.e. do you have the funds to survive years one and two). One good thing that you should emphasize is that you have data to make decent guesses.

The other thing that I would suggest is that remember that you are pitching to *investors* and not *customers*. One common mistake that I see people make is that they are trying to sell the product and spend too much effort talking about the product and how great it is. You should minimize the amount of time you spend pitching the product, and focus on the financials.

The other thing you should do is to spend some time going to pitches where people are pitching in front of investors/angels, and see what questions they have.

Arthur Lipper Chairman of British Far East Holdings Ltd.

October 5th, 2016

A fair and realistic assessment of the risks and reward of financing your company. I believe that you will be more successful if you offer a royalty than equity and that it will be better for you if you are successful See Royalties.Website

Todor Velev Managing Partner, EEI Network

October 6th, 2016

There are two thing you should demonstrate in front of the investors:

1. That you understand the business you want to enter (clients and their criteria, competitors, market)

2. That you know how to make money in this business (the relationships of value proposition, revenue model, logistics / delivery, risks involved, resources needed, etc.)

If you can present this in a simple and straightforward manner means that you really know what you are talking about. 


Barry Burr founder, Barry Beams llc, a startup to re-light your night.

October 5th, 2016

Know your pitch and deck forwards and backwards. Prepare to answer any question at any given moment, being interrupted at will with other questions on other topics, staying ready to return to your previous point and topic right where you left off from. Firmly give the numbers you ask for. They will give you a haircut when they offer the term sheet regardless what your asking amount starts off as. Never ask for an NDA. There's an implied honor and confidence in an invited private pitch to an investment board. They will buy YOU! Your poise, professionalism, work ethic, ability you exude that you can deliver, and are as devoted to succeed without chance of failure no matter what obstacles may show up. * Oculus, Re-Light the Night* * Barry Burr p(323) 487-2002 Barry@BarryBeams.com f (650) 968-1228* "His job is to shed light, and not to master" ... Robert Hunter

David Martin

October 5th, 2016

You should have a business plan.  Doesn't mean you can not secure funding without one.  You may meet the rare eccentric that doesn't place as much value on them.  But even so, if you have worked through one, you will have a much better competence of what your business is.  And in putting a detailed one together, you will answer all the questions you or an investor might have.