One of the important aspects of fundraising is being perceived as an attractive deal. If you have a commitment from a well known investor or have multiple investors asking to invest in your company, then you’re probably attractive enough. But what should you do if that’s not the case?
A good solution is to demonstrate attractiveness by asking the potential investor what added value he can bring on board. This works because it shifts the decision making balance. Now, it’s not only you who needs to convince the investor, but also the investor who needs to convince you.
Here are the main questions you can ask, and the proper way to phrase them without being arrogant:
- We’re curious to know how you look at our market, can you give us your perspective?
- What do you think should be our strategy for the short and long term so we can become a billion dollar company?
- We want investors with diverse know-how and experience. Where do you think you’d be most helpful to us?
- We want our investors to be accessible and involved. Can we count on getting enough of your attention?
- We only want to hire top-notch people. How can you help us? Do you know great people we should bring on board?
- How can you help us with business development? What doors can you open for us?
- How would you be able to help us with our next financing round?
- Are you planning to participate in future rounds? (With some investors ‘No’ is also a good answer, but more on that on another post).
- We’d love to learn more about you. Can you refer us to other companies you’ve invested in?
And one more thing. Listen carefully to the answers you get. Unless you are really trying to learn whether an investor is has real added value, the other side would feel that you’re faking it.
Labels: Fundraising, Pitching Investors