How to Get Meetings with Investors and Raise Money by Aaron Harris

Y Combinator・2 minutes read

Investor meetings involve understanding investors and their motivations, requiring preparation on goals and how to achieve them, along with tracking down investors for funding and securing the funds. Different types of meetings with investors, like intro, follow-up, and decision meetings, are crucial, with the ultimate goal being to secure funding when needed and ensure credibility when approaching investors.

Insights

  • Knowing investors' motivations and preparing for meetings by understanding your goals are crucial steps for successful fundraising.
  • Different types of investor meetings, from intro to decision meetings, each require specific preparation and presentations to secure funding effectively.

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Recent questions

  • How should I prepare for investor meetings?

    Understand investors, set goals, prepare effectively, and secure funds.

  • What are the different types of investors available?

    Friends, accelerators, angels, seed funds, VC funds, crowdfunding.

  • How can I effectively raise funds for customer service?

    Consider when it becomes a limiting factor in managing user needs.

  • What should I prioritize before investing in user acquisition?

    Acquiring users organically before using paid methods like Google Ads.

  • How can I effectively pitch to investors in decision meetings?

    Create a concise pitch deck with key metrics, focus on future potential.

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Summary

00:00

"Successful Investor Meetings: Preparation, Goals, Funding, Growth"

  • Investor meetings involve understanding who investors are and what motivates them.
  • To have a successful meeting, you must know your goals and how to achieve them.
  • Investor meetings require preparation on when you need money, who to meet, how to secure meetings, and how to conduct them effectively.
  • Raising money involves tracking down investors, convincing them to meet, persuading them to invest, and securing the funds.
  • Determine if your business truly needs funding before seeking investors.
  • Raising money can occur at various stages, from idea conception to having users, but it should align with your business growth needs.
  • Be cautious about hiring employees as it can be costly and may not always be necessary for startup success.
  • Prioritize acquiring users organically before investing in user acquisition through paid methods like Google Ads.
  • Consider raising funds for customer service when it becomes a limiting factor in managing user needs effectively.
  • Understand the types of investors available, such as friends and family, accelerators, angels, seed funds, VC funds, and crowdfunding, and their motivations for investing.

15:41

Effective Strategies for Securing Investor Funding

  • Venture capitalists have a structured decision-making process, starting with one partner and potentially involving multiple partners in later stages like Series A funding.
  • Crowdfunding websites offer investment opportunities through syndicates, where one lead investor gathers funds from others to invest collectively.
  • Crowdfunding can be done privately or publicly, with the option to list a company for investment without meeting every member of a syndicate.
  • Cold emails to investors should be well-researched and tailored to the recipient's interests and background to increase the chances of a positive response.
  • Sending relevant emails about services investors may find interesting is more effective than spamming them with generic pitches.
  • Investors are interested in unique, undiscovered companies that have the potential for significant growth and success.
  • Different types of meetings with investors include intro meetings, follow-up meetings, decision meetings, diligence meetings, and fancy dinners.
  • Intro meetings require a clear explanation of the business idea, possibly with a demo, and a presentable appearance to make a good first impression.
  • Follow-up meetings delve deeper into business metrics, progress, and insights, showcasing the understanding and development of the business.
  • Decision meetings necessitate a concise, impactful pitch deck with key metrics memorized, focusing on projecting the company's future potential and growth.

30:26

Effective Investor Strategies for Company Funding

  • Having 50% less cash than expected can indicate other issues at work, so it's crucial to have a metrics dashboard to track everything.
  • Understanding the framework for meetings can lead to the final step of securing funding, which is the ultimate goal for a company.
  • Investor meetings should only be pursued when funding is needed, and a definitive "yes" from an investor is when signed documents and wired money are involved.
  • Investors who say "no" quickly often make better decisions, as indecisive investors may not be ideal partners.
  • Investors who waste time, behave poorly, or conduct diligence for other companies should be avoided, and any harassment should be immediately addressed and reported.
  • Approach investors who have invested in competitors cautiously, as it can vary case by case, and ensure credibility of angel investors by checking references and portfolios.
  • Investor FOMO is driven by the desire to invest in successful companies, but the best investors make quick decisions based on their own diligence.
  • Founders should avoid pitching visions that are either too grand or too limited, finding a balance to effectively communicate their goals.
  • When seeking funding from family and friends, tailor the approach to the relationship, and be prepared to dedicate significant time to fundraising, but not at the expense of company progress.
  • Leveraging any advantage, such as being a female founder for specific investors, can be beneficial, but not all founders need to focus solely on fundraising, as the CEO's primary role is to secure funding while others focus on business growth.
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