Your first conversation with an investor

An early-stage investor doesn't invest in an idea. They invest in people, and in proof that people want what you're building. Your job is to show them that, quickly.

What an investor looks at

• Team: why are you the right people for this?
• Problem: do people really have this problem, and are they already paying for some kind of solution?
• Proof: customers, a waitlist, a pilot, letters of intent. Anything other than opinions.
• Size: can this become big, and in which region?
• Money: how much you're asking for, what for, and how far it gets you.

Prepare before the meeting

1. 1
   One sentenceWhat you do, for whom, and why now. If you can't say it in 15 seconds, you're not ready.
2. 2
   NumbersHow many customers, revenue, monthly costs, how many months you can go without new money.
3. 3
   What you're asking forThe exact amount, for what share, and 3 things the money will go towards.
4. 4
   A short deck10 slides at most. Send it after the conversation, not before.

Mistakes that kill the conversation

• "We have no competition." There always is some, even if it's just Excel.
• Projections along the lines of "if we capture 1% of the market".
• Not knowing your own numbers.
• One partner does all the talking, while the other stays silent or disagrees in front of the investor.
• Asking for money without a clear plan for what to do with it.