What does an investor want to hear?
Fundraising is not an easy job, especially in Europe where money is scarcer than in the US for instance. When you approach an investor in Europe, you have one shot, so you better not miss your chance.
Investors are very popular. They can receive between 500 and 2000 demands a year (depending on the size of the firm) from entrepreneurs who are looking for funding. You want your solicitude to catch their attention. That’s why you need a great teaser.
What investors call a teaser is a one page document (one page max) that summarizes your business plan and emphasizes the Unique Selling Proposition of your idea. It should include the following information:
- Introduction of yourself and of your company
- The problem you are solving and its market size
- How you are solving that specific problem and what is special and uniqueabout your solution
- Who are your competitors
- Briefly mention the technology behind your solution if relevant
- Your business model: How are you planning on making money?
- Your team: profile, background and previous experience of the core members. Mention advisers especially if they are recognized in the ecosystem
- Financial projection for the next years (it’s recommended to do a 3 year projection plan). How much are you currently raising and how will you use that money (no need to get into too much details at that stage)
- What’s your long term view for the company: IPO? Being bought? etc
Be clear and concise! Emphasize the uniqueness of your solution. If you can’t answer some of those questions, then you are not ready to speak to investors. Be over-ready: Master your business plan, master your story and have it clear why you want to raise money.
Do your homework before approaching investors: make some research and target the investors who are investing in the sector and stage growth you are at. Send your teaser to THAT list.
–> Find an investor who you will enjoy working with on a daily basis
–> Find the right investor that can help you in the stage you are
–> Take only the money you need for the stage you are at