As our Startup Asia Jakarta and Founders and Investors meetup draws closer, I’ve received a lot of emails from entrepreneurs asking about engaging with investors. After speaking to many investors on this subject, I’ve decided to share my thoughts. I have listed a few important points below – which are far from complete – but should serve as a good start to get entrepreneurs thinking:
1. Target and research the investors
If you know in advance who are the investors coming to a conference or a networking session, do some homework to understand them a little better. It can be awkward to tell investors that you haven’t heard about them before — but it certainly does happen, I know. So if you’re interested in, say GREE Ventures, and they’re highly relevant to your business, then you need to know what type of startups they are looking to invest in. Is it early-stage or growth startups? E-commerce, gaming, mobile? You may also want to understand the investor as a person by checking his or her LinkedIn profile. Other points to take note of can be found here.
2. Prepare your elevator pitch
I have stumbled clumsily too many times when I was asked to introduce my business. But after doing it enough times I think I somehow got it right. I learned it the hard way. The easiest way is to prepare your elevator pitch before you head out for battle. You can follow this structure introduced by the Founders Institute:
My company, (insert name of company), is developing (a defined offering) to help (a defined audience) (solve a problem) with (secret sauce).
It’s a sample sentence but feel free to customize it to your own style. You should have your own style.
3. Prepare a demo
If your elevator pitch and early talks impress the investor, he/she might ask to see a demo. So you’ve got to get prepared. Pre-load your website on your tablet if needed. If your app requires an internet connection, make sure you get access to 3G or Wifi before the networking starts. You may want to prepare some screenshots to show it to the investors as well.
4. Talk to them all
At a networking session, the most stupid thing you could do is to be shy and hide in a corner. A lot of such people complain that there aren’t enough investors around to talk to. Sure, there are certainly more entrepreneurs than investors at any event. It’s normal. And that is why you need to identify and speak to as many of them as possible (assuming you’re looking to raise money). At our last Founders and Investors meetup, I saw entrepreneurs standing in the corner chatting with their co-founders, which is stupid. You can talk all day at your office anytime. So show some guts, get out of your comfort zone to speak with the investors. Go home if you don’t want to network and meet new people. Period.
5. Don’t get too excited
This is Asia, so investment usually takes time to happen. So don’t get too excited when an investor give you kudos — they might just be playing nice. Don’t expect to get them to invest immediately. But if you manage to do it, please tell me how you did it. I think the key is to strike a good first impression and then secure a serious meeting after the networking session. Don’t release too many figures. Keep them and present them when you meet again next time. You should be better prepared for the next meeting. But that’s your call, there’s no hard and fast rule.
6. Be yourself
Investors are humans too and all humans like a good social chat. Being humorous is good. But being yourself is most important. A lot of entrepreneurs see investors as people who are high up the top in the food chain. I mean, some of them are, but there’s no need to feel inferior. Investors invest in the people. So having a good chemistry with them is an important factor for any investment to take place. That said, don’t be overly humorous or cocky – that often turns people off, including investors.
Now again, this list isn’t a complete one. I’m sure there are points which I have left out. If you have more tips to share, please add them in the comments. I will be watching and learning too.