Here’s a scenario that all early-stage entrepreneurs hope to experience: investors want to meet with you to discuss funding opportunities for your startup. How do you prepare for your first meeting—and impress potential funders? We’ve compiled a few key considerations that were covered during the GIST TechConnect webinar, Global Investment Trends and Best Practices. 

Tip 1: Highlight your entrepreneurship journey

While investors want to hear about your idea and vision, they’re ultimately investing in you, the entrepreneur. When you’re asked the question, “Tell me about yourself?”, be ready to provide a clear response that demonstrates you have the right skills and knowledge to lead your company. Investors also want to know about your accomplishments. Focus on achievements that illustrate your abilities to take your startup to the next level.

Knowing how to present yourself can be difficult, but investors appreciate honesty and authenticity. Again, they’re investing in the entrepreneur. Sharing stories about yourself—both successes and failures along your journey—can make it easier to connect with investors on a personal level.  

Tip 2: Tailor your presentation

Each investment group has a unique mission, culture, and area of interest. Take the time to research the investors: What sectors do they invest in? At what stage do they invest in a startup? How much money do they typically invest? Knowing your audience will better prepare you to position your company and your opportunity in a way that will appeal to the funders.   

Some investor groups will provide guidelines that detail how they would like entrepreneurs to provide information to them. If you don’t appeal to their interests or presentation style, it could jeopardize your opportunity to secure investment. Try to connect with companies they’ve already invested in for insights and tips on how to appeal to them. 

Tip 3: Demonstrate your potential

During your presentation, clearly showcase that your startup has the potential for success. Investors often look for the following information in presentations: 

• The real-world problem your startup is solving. 
• The value you’re providing your customer.
• The competitive landscape.
• The potential for market growth.
• The intellectual property around your innovation.
• The cost and profit margins for your product or service. 
• How much funding you need—and how you plan to use it.
• The talent and expertise of your team.
• The makeup of the company’s team.
• The plan for returning their investment.

Questions around sales are a given. Help the investor understand your customer with testimonials to validate the idea of customer lifetime value. You should focus on demonstrating that customers have paid you for your innovation, are enthusiastic about your offering, and have the potential to become long-term customers. Investors will feel confident in your company when you show them the possibility of a solid future customer base. 

Plan to answer multiple follow-up questions about the information you provide. Prepare examples, stories, case studies, or research findings to support your answers—and further illustrate your potential for success. If allowed, have other team members present with you to help answer questions not in your area of expertise.

Tip 4: Articulate your timeline

Like many founders of early-stage science and technology ventures, it’s possible that you haven’t yet taken your innovation to market for various reasons. Your product may still be in the testing phase and will be in that stage for some time. Or, for example, you’re a hardware company that formed in a university. There’s a chance for lengthy intellectual property negotiations with the university’s tech transfer office. 

Again, there are many reasons for a prolonged timeline, however the question still remains—how do you negotiate investment when your product won’t immediately be available? Before your presentation, have a clear understanding of your timeline. Articulate how long it will take to complete testing before taking your product to market, or to negotiate your intellectual property transfer. Break down the process into stages to demonstrate guaranteed progress. This will show investors that there's a clear road map to scale.

 

For more in-depth information about global investment trends and best practices, watch the TechConnect webinar:

Many thanks to our TechConnect panelists for sharing their insights on this important topic:

• Caroline Bressan, Director of Social Investments, Open Road
• Patrick Gouhin, CEO, Angel Capital Association
• Tarek El Kady, Founder & Chairman, MED Angels
• Eli Velasquez (moderator), Director, Venture Development, VentureWell
   

Explore more resources from the TechConnect webinar series here.