Ben Zises’ Post

Practical tips from Techstars to help founders prepare for fundraising: 💡 Build momentum in your fundraising process, and don't stay in the market for too long. Investors should feel they don't want to miss out on a limited-time opportunity to invest in your business. 💡 Keep good news flowing. Don't oversell your pipeline in the first meeting with an investor. Keep something exciting in your back pocket to share in your follow-up conversations. 💡 Keep it simple and focus on the next step. When you reach out to an investor, the goal is to get a meeting, not a check. After your first meeting, the goal is to get a second meeting. Share only the information and data needed to move to the next step. 💡 Your investment memo should be the basis of all your communications with investors, from a 20-second elevator pitch to intro emails and in-person meetings. Below is a list of typical investor memo elements. 💡 Here is a good story flow for your elevator pitch: For (customers) who have (this problem), we provide (this solution). 💡 Each slide of your pitch deck should have ONE clear message. Don't put multiple messages/ideas on one slide. When applicable, use strong visuals to support your message. 💡 Have drill-down decks ready for each strategic area: GTM, sales funnel, product roadmap, tech stack, finances, etc. 💡 You need to understand your financial model inside and out and be directly involved in creating it. It's best to present it in a meeting so you can answer specific questions and provide context. Your financial model is your growth story in numbers. 💡 Share access to your data room only after an investor shows a strong interest closer to the end of the process. 💡 Social proof matters. Your existing customers' references and testimonials are a powerful tool to influence investors. 💡 It's a good practice to send monthly updates to interested investors to inform them of your progress and KPIs. 🏆 Finally, investors are looking for an UNSTOPPABLE founder—someone who 100% believes in their idea and will bring it to life with or without a particular investor.

4 things investors can conclude about you in the fundraising process. I bet you didn't know about No 3. Founders sometimes forget that VC's profession and everyday job is to analyse opportunities like yours, speak with ambitious founders and look at the tiny signals that will show them who is the right champion. Founders look for money and growth partners. Investors, on the other hand, use this process to create a full picture of you, and your business and to create trust that you can make it. A few conclusions investors could make based on the fundraising process: 1️⃣ Outbound message and first touch ↳ Shows are you lazy to do it manually 2️⃣ Pitch call and introduction ↳ Shows what are your sales skills 3️⃣ Follow-up calls and Investor Relations ↳ A slow approach after the call implies to the messy business 4️⃣ Accomplish KIPs, sharing failure and straightforward communications ↳ Shows that you can be a trusted partner and build their trust You are the main product of your company and fundraising is the mirror that shows another part of your business. What are the 5th signs investors see in the process? 🤔

Dear Founders: If you're reaching out to institutional investors to pitch your business and the intro / description of the business contains superlatives like; Trailblazing, Industry-Changing, Revolutionary, Disruptive, Visionary, etc., you're doing it wrong. If you're reaching out to institutional investors to pitch your business and the intro is clearly a mass email outreach with no insight into the person you're reaching out to other than a badly structured :NAME: field, you're doing it wrong. If you're reaching out to institutional investors to pitch your business and you are clearly in an irrelevant Industry/Stage/Region for the investor you're targeting, you're doing it wrong. Fundraising is a critical job for the CEO of a venture scale business. If your outreach indicates that you're not willing to do the work required for effective sales/connection with relevant investors, it's a clear indicator to investors that you're not willing to do the work in other areas of your business either and it's a quick delete on the email.

During the fundraising journey, one key aspect can make investors eager to invest in business: Follow-ups with regular updates! Investors love to hear about progress, so showcase your growth Regularly & persistently Feed them with great news about the company Not asking like… 🚫 "Have you made a decision regarding the investment?” 🚫 "What are your thoughts on the fundraising?” But ✅ “Here is what happened, here is revenue traction, here is user growth…” Start with a friendly greeting Then share bullet points on new hires, partnerships, revenue increase, and more. End with the invitation to work together, expressing your interest in taking the next step. If you often forget about sending updates… Set weekly reminders to share new info and maintain investors' interest Investors will start signing! Fundraising is all about building relationships with believers in your vision. Make them believe! Stay tuned for more fundraising tips, and a big shout-out to Dan Hnatkovskyy for some of these pointers! 👏

🤝 💸 Founders, it’s time to rethink your approach to building investor relationships. In this article, our own Doreen Huber and Naza Metghalchi share invaluable insights on why – and how – founders should maintain relationships with potential investors, even if they aren’t actively fundraising. Here are the key takeaways: 1️⃣ Keep up the contact: Whether or not you’re raising, it's crucial to maintain ongoing conversations with VCs. Use these sessions to share your progress, gather feedback, exchange market insights, and lay the groundwork for future funding opportunities. 2️⃣ Be selective: Think carefully about who you choose to meet, and be sure to ask questions that can help assess whether they’re a fit for you. Remember, evaluating an investor's values and approach is just as important as them evaluating yours. 3️⃣ Engage and evaluate: When a potential investor shows curiosity in how they can support you, be proactive! A simple request, like an introduction to a key contact, can be telling of their genuine interest in your business and stop you wasting time on the wrong relationships. 🔗 Click the link below for more.

Are you trying to raise money for your business? I’ve raised billions for companies and invested personally in private ventures. Here are 9 things the most successful raises do: 1. Go easy on the PowerPoint → You won’t convince an investor to write a check with a fancy presentation → Keep it simple: management backgrounds, target market, your advantages vs. competitors, key operating metrics, financial statements, use of funds 2. Emphasize your team → Investors back people (not businesses) → Highlight team credentials and experience and how these qualities position you to prevail 3. Skip the marketing video and product demo → Savvy investors have 9 burning questions before you’ve said hello → Let them lead the discussion after a short pitch → the answers to these questions are the bridge between your pitch and funding 4. Allow the market to establish valuation → If you’re ask is too high, the investor will walk → If you’re too low, you left money on the table, OR worse → the investor will walk because you left money on the table 5. Make due diligence easy → Have a virtual data room set up with every company document → If someone is willing to dig in, give them info asap → this will build credibility 6. Approach your raise as a process → Target 100 investors (expect to convert 8-10% into proposals) → Target 8-10 proposals because you’ll lose 1/2 after due diligence 7. Raise the money before you need it (ideally) → #1 way to kill an investor conversation: “We’re going to run out of cash in x days” → No investor will be your life raft → the downside risk outweighs the upside 8. Focus on the partnership → There are 1000s of venture and private equity investors  → Find the right partner (which is priceless) → avoid getting hung up on a few sticking points in the deal 9. Pursue investors who know your industry → Investors focus on a market they know (e.g., tech, healthcare) → Make sure the investor you’re talking to is a fit for your company ______________________ I'm Marc Cabrera, a veteran deal maker and private investor. Follow me if you want to optimize your deal making, career & wealth while balancing all with fitness.