Strategic Links London

Getting Investor-Ready​

First rule you should know pitch investors is:

  • The purpose of their enquiry process is to find a reason to say NO
  • It may be like a date, say no is the goal, if you can drop all the reasons to say no, then there will be the yes

Business model, not business plan:

As no business plan survive after the first client engagement, then investors know that BPs are just theoretical exercises.

It means you have to do it well, but if you rely on it to get invested, then you are wrong. Be able to embrace the business model to explain the value creation and justify the revenue streams then you are half way to be there.

Idea and team:

“People buy why you do what you do” 

In his simple and yet powerful statement Simon Sinek beautifully pictured the matter: ideas are good if there is passion. Team is great when they share passion. If you really do it for good purpose and not just for money then you may succeed.

Time matters no money:

“If I lose money I can recover it, if I lose time that is gone forever.” 

Lorenzo Magnifico from VC firm L Venture is clear about this point. Then if you dare to use an investor’s time, be aware, they may feel you are stealing their most valuable asset and then turn you down with no explanation. People are not there to teach you how you should live, behave or think. They just quit.

How did you fail already?

You didn’t fail? Then you probably are not a safe investment.

Surprised? But this is the true, if you didn’t experience a startup failure you may be not ready to lead your new venture at the best. This is what investors think: virgin-people who have no scars on their skin may not be tough enough to lead a startup to success.

If you are not thinking great, you are not interesting:

You may like it or not, but to enter the VC game your business has to be super good, if it is just good enough that may be not   … enough.

It is hard to accept but this is the new venture rule, if you have no other possibility than invest in it, you should do it, but do not expect someone else will. Investors are people with lot of possibilities, what would you do if you have way too many possibilities? You would just try to embrace the best. If your business is not the best, you are out.

What to do with a small scale business:

First you should forget VCs, full stop. But VC are not the only players, there is a plethora of investors who may be happy to take a share of a steady, and yet beautiful business.

Thinking small is not a shame, on the opposite, you may set up a lovely small business that makes happy both customers and employees, and you should be proud of it. Just be aware and move accordingly, find out the right partners as soon as possible even if it may be challenging, (but don’t believe it is easy when the business is bigger). Go along with your idea if it creates value, let grow it organically, embrace a more sustainable pace and steadily act as a creator. 

Get aware of the rules of the game:

Let see it my dear: it is difficult to explain, it is difficult to get if you haven’t got it yet“.  This italian song (Vedi Cara, F. Guccini) refers to relationship’s dynamics, here we apply it to the funding dynamics.

The whole game may be hard to explain, it might be hard to understand, until you get the subtle dynamic, then everything appears in its logic and simplicity, but before that, you may struggle uselessly.

These are among some of the rules of the game we master and we are open to share, our support impact well beyond the simple fundraising process, but it may impact on your personal effectiveness too. You may enhance your capability as a leader and drive your business in a more factual way. We are here to help.