What must be kept in mind when making the first presentation to a potential investor / VC? – Things to keep in mind while presenting Bplan to VC / investors

Everyone can be an investor, so it’s difficult to generalize about the best way to persuade any investor to invest in your company. Even if we examine only two types of investors, angel investors and early stage venture capital investors, there are many differences in their attitudes and preferences. However, here are some tips on what to keep in mind when making your first presentation to such investors:

1. Do you homework and have your facts at your fingertips. You should have a clear idea about every aspect of your venture, including the economics. Even if you are an engineer, that’s no excuse for not understanding the financial and accounting aspects of the business. Astute investors will expect you to know “the numbers”, including your assets, liabilities, revenues, profits and margins.

2. Know your investor and understand their preferences. Some investors invest in specific sectors or stages, so if you know this in advance you can position your company appropriately. For example, if your investor focuses on high technology, you can highlight the technical aspects of your business.

3. Build trust. There are many ways to do this. For example, you might start by showing up for the meeting on time and being presentable. You can also build trust by identifying personal connections (e.g. common acquaintances or a common alma mater) and by being a good listener – and don’t forget to keep smiling!

4. Be able to explain why your company can give them a better return than their other options. Entrepreneurs often think that their company will produce returns that are high enough for investors. However, the amount that is “high enough” depends on what other companies are projecting to those same investors.

5. Be ready to negotiate, and don’t be too rigid in your thinking. Remember that in an early stage investment deal, there are many points of negotiation and it’s often possible to overcome “deal breakers” by being creative.

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