#27 Raise Eyebrows
If you want to raise capital, your pitch needs to raise eyebrows. But not how you think! There’s a golden opportunity to bring all the right kind of attention to your business by turning the tables on the traditional pitching agenda. Here’s how.
There always comes that point in the presentation - usually at the end - where the investor invites you to ask questions of them. And you should - BEFORE PITCHING. Don’t kick off until you’ve all determined that it’s worth having the conversation.
Often when pitching, we get so focussed on getting the green light that we forget to look as far as we can down the road. What you’re proposing is the business equivalent of marriage. If your value proposition is really as good as you think it is, then you need to vet your investor as much if not more than they’re vetting you! You want to make sure you wind up in business bed with someone you’re prepared to grow old with - and who wants to grow with you.
They should be raising YOUR eyebrows when they’re telling you about how great their VC alumni network is, how they’re happy to cornerstone subsequent investment rounds - so that two years from now, when you’re raising another $4M, they’ll kick in $2.5M to get you started.
Question them - now’s your chance!
"How often are you introducing your portfolio company CEOs to alumni?"
"What’s your % of multi-round investments?"
Questions are great - investors love them - as long as you adhere to the old biblical maxim:
Don’t be a dick.
These questions are about adding to your knowledge - not compensating for your lack of prior research. Before you step in the room you should have googled, asked around and done your homework. Then, when you’re face to face with the investor of your dreams, you’ll have free reign to ask intelligent, searching questions and seek clarification on points that deliver you a wealth of insights about whether you should be walking down the aisle together or sprinting from the altar.
If what you’re hearing from a potential investor is raising your eyebrows - in a good way! You’re in the right place.