The goal is to reassure investors, and to achieve this, the presentation platform presented must make them sit up and pay attention. Don’t become one more tone that you hear and quickly forget. Failure is not an option, and these are the common mistakes that scream, “Failure”:
1. The wrong investors: One of the biggest mistakes companies seeking venture capital make is not knowing who they are meeting with. Introducing the wrong people is a waste of your time and theirs. Does your business fit in with what the company or its area of expertise typically invests? Even though its launch pad is excellent, doing a little research beforehand avoids the disappointment of a failed launch. Take a look at the types of companies your investors have backed before. How big are they? Do they want only established companies or are new companies okay? Also, make sure there are no conflicts with the competition.
2. Make a universal shade: Unique shades stand out, canned ones don’t. You are missing out on a real opportunity by approaching all investors in the same way. They have likes and dislikes, which is what you want to attend to, not knowing what they are is a big mistake.
3. Not knowing when to stop – Once it’s a fluke, more than that could be a problem you need to address before continuing. If one of your investors expresses a concern about part of your presentation, consider their comments carefully. If other investors raise the same topic, continuing without a few adjustments will get you nowhere. Resume with your launch pad once it’s flawless.
4. Be lifeless and boring: The first impression is make or break. Get dressed and make eye contact with your audience. Reading the slides verbatim means you miss out on engaging your investors and judging the mood of the presentation. The fact is, most people have remarkably short attention spans, so less is more. You should create a spark almost instantly. Slide after slide will lose your audience’s attention unless each one shines through.
5. Not being prepared: The only reason a potential investor won’t have a question is if they will turn you down. Potential CVs will want to know exactly where your money is going and how you are going to proceed. Remember that you are not owed anything, including your signature on a check. Before you start your presentation, think about all the possible questions an investor might have and make sure you have the right answers waiting behind the scenes. Be aware that some questions can make you feel defensive and be prepared not to react that way. Nothing will lose a potential investor faster than a company that you think knows better than investors. They have earned their money, so they are doing something right.
6. Ignore an opportunity in the informal: Formal pitches are your planned opportunities to secure investors, but when informal opportunities appear, you should take advantage of them. Seeking the advice of a potential investor after giving them a brief summary could easily lead to a formal invitation for your company to make a presentation.
7. Stay quiet about updates: Even investors broadcasting your pitch want to know that you value their advice and listen to their criticism, especially when you act on it. Calling them back after time has passed to let them know that you made changes based on their recommendations shows that you are willing to put in the effort to get things done. Not letting past casualties know that you’ve made fundamental changes only guarantees that you won’t see term sheets coming from these corners.
8. Not being honest: honesty is valued with good reason. If your investor mentions something that he warns is a potential danger, he uses to lose all credibility by admitting that he already knows. Be honest and avoid negative comments about a known issue.
You spend a lot of time creating the perfect presentation platform. Make sure you can back it up with everything you say or do. Avoid the most common avoidable mistakes and watch investors line up for a chance to work with your company.