218: Investor Meetings Do’s And Don’ts

Ever wonder what you should or should not say during a meeting with a potential investor? Have you ever had an unpleasant meeting and wonder what went wrong? This is completely normal. And in today’s episode, Steli and Hiten will share what investors are expecting from you and how you can best prepare for those expectations. They provide valuable insights from both the investor side and founder’s side and discuss why both parties need to discern whether or not they’re a fit.

Time Stamped Show Notes:

00:05 – Today’s episode is about investor meeting dos and don’ts

00:40 – There are guidelines and best practices to follow when talking to investors

01:13 – Hiten says the first rule is: do not lie to investors

02:14 – Do not go into a meeting unless you have a plan of action regarding your problems

02:37 – Steli says to be yourself and do not impress investors by trying to be someone else

03:30 – You or your business is not going to be the right fit for every investor and that’s OK

04:35 – Some people want to say “yes” to everything an investor says, even though they do not feel it

05:10 – Investors are trying to evaluate you, your execution and your ability to grow your business in the future and you should not be afraid to say “no” to their suggestions

06:16 – Investors want to know if your business is worth investing in, if you can grow it and if you are the right team to do it

06:34 – Investors sometimes just want to ask things and instead of answering outright, ask more questions, too

07:17 – Steli says don’t just answer all the questions, make it a give or take

08:47 – Do not talk too much, give precise and in-depth answers but keep it brief

09:33 – If you ramble, investors might not want to invest in you because you do not know how to succinctly communicate

10:17 – You do not have to share every detail of your company—give your investor a chance to dig deeper if they want to

11:11 – Steli does not like when people ramble

12:27 – Hiten says to not do a group meeting with investors

13:31 – Hiten says meetings with one founder is good enough and he actually prefers to just meet one, especially during the first meeting

14:17 – Steli says if everyone is included in the investor meeting, then no one is doing the work

15:33 – Steli’s tip is to understand your goal in an investor meeting and to discover if you are a good fit

16:24 – Get to know the investor and pay attention to them to know if they are also a good fit for you

17:36 – Hiten’s tip is to gain context about an investor online, but don’t assume anything from just that information alone

18:22 – If you appreciate the podcast, give a review and rating on iTunes

19:16 – Send feedback about why you are listening to Steli and Hiten

19:41 – End of today’s episode

3 Key Points:

Rule #1: Do not lie to your investors.

Speak clearly, succinctly, and honestly—if you do not agree with their feedback, it is okay to disagree.

You do not have to share every detail of your company to your investor; give them room to prod and ask you questions to dig deeper.

Steli: Boom. Hey, everybody. This is Steli Efti .

Hiten: And this is Hiten Shah.

Steli: And in today's episode of the , we're gonna talk about investor meeting do's and don't's. So you meet with investors, this could be the first meeting, the second or the third, this could even be a call. I think that a call could also qualify as a meeting.

Hiten: Yeah.

Steli: Whenever you interact with investors, you meet and talk to them, there's guidelines, right? Maybe not hard rules, but guidelines on some mistakes you should avoid, many mistakes that a lot of founders have made and you and I have probably made ourselves, and good practices,