As a corporate enterprise capitalist, I average 4 introductory meetings a week with startups that come to me with fundraising pitches – and I’ve noticed that founders could do a lot more to optimize their time in VC funds.
Biggest missed opportunity? They leave no time for discussion. And when they do, they expect me to ask all the questions.
However, the most fruitful questions and answers after the presentation are conversations. With this in mind, I counsel all founders to return to VC meetings able to ask these 4 questions.
Ask for feedback on your presentation
Make sure you get feedback on your deck instantly. If you wait until you hear that you just have not been in a position to attract investors, you’ll likely get a less specific answer. It’s not that investors are apathetic or reticent. We simply find ourselves in these meetings all the time, so it is important to supply opportunities for us to interact during the conversation.
Keep in mind that asking everyone you meet for their opinion can result in information overload – you find yourself with each investor’s subjective opinion. However, if you notice common themes, take them seriously.
Ask for an introduction
Meeting with investors one-on-one could be intimidating, so asking for an introduction could seem dangerous. However, most enterprise capitalists wish to support startups in some way, even if they are unable to take a position, and are quite open with their networks.
Be specific about what sort of support you wish. And strike while the iron is hot. If you wait even an hour to send your email, it’s possible that your opportunity to attach with an investor’s network has expired.
Ask for sources and opinions
An enormous a part of being a successful VC is having deep industry knowledge. I’ve found that Tactic founders take the time to ask me questions like: What are your thoughts on the current fundraising climate? Are you seeing any noticeable changes in consumer behavior in our area of interest? Do you think the asymptotic market is too difficult?
When you dedicate meeting time to properly discussing collaboration, investors can learn as much as you do. And as an added bonus, if you teach them something truly progressive, they’ll likely remember you in the future.
Ask the way you can assist
The last query you should ask investors in meetings is: “How can I help you?” I find it irresistible when founders ask me this. This is a sure sign that this is the sort of one that is community minded and wants to present back.
But it is also a sign that they realize that networking goes each ways.
Of course, there is some power imbalance when a founder pitches to a VC, but founders have a lot of power. Just as you hope an investor will point you in the direction of a colleague, you possibly can be the link between investors and the future flow of the deal. So ask if they think there’s a particular sort of business missing from their portfolio – you possibly can just prepare your personal introduction.
When we talk about the starting space acting as an “ecosystem”, it is because each player has an interconnected role to play. By taking time in pitch meetings for a real exchange between the VC and you as the innovator, you help connect more of the dots in this ecosystem, strengthening it for the advantage of everyone involved.