Question: What's the biggest mistake you've made when approaching an investor? What did you learn from it?
Got Too Married to the Deal
"When I first started approaching investors, I think they could tell how badly I wanted to work with them. I believe I lost a lot of opportunities because I gave the impression that I was desperate, which is obviously a major turnoff. The few times that I did get a term sheet, the deal was extremely unfavorable because my commitment to the deal gave me less perceived leverage. "
@MarkKrassner
Spoke Instead of Listened
"Truly, the biggest mistake you can make with investors is not listening to what they want. Most investors don't have a ton of time, so every meeting counts. When I first started approaching VCs I would just spill my guts about the product give them the full pitch. Most would stop me mid-sentence to say, "That's nowhere near our wheelhouse, sorry." That could have all been avoided by listening."
@AndrewVest
Focused on Emotions vs. ROI
"The biggest mistake I made approaching an investor was trying to appeal to them emotionally. Investors aren’t looking for friends, nor are they looking to be emotionally attached to the business. They’re looking for ROI, and as long as you can show them what you need and the benefit they’ll receive in return, you have a very high chance of securing their funding."
@vgendelman
Assumed the Deal Would Close
"In sales, "assuming the sale" is looked at as a great way to generate higher checkouts and order values. When pitching an investor, however, this mentality can lead to dangerous outcomes. For example, I was guilty of making important decisions after a pitch strictly because I "expected" the investment to close. When the deal fell through, I was stuck with financial burdens I couldn't afford. "
@loganlenz
Hit "Play" (Literally)
"Before getting ready to present to a group of angel investors, I was playing with my iPad when I accidentally turned on the music. For some reason I couldn’t turn off the iPad, and I had to run out of the room while I forced it to power down. Needless to say, I did not cement my technology expertise that day."
@adamroot
