What are effective ways to understand the investor perspective?

First and foremost you need to understand the VC-maths and decision-making process. It's always about comparing the odds of success with the expected return ratio. If succeed the fund expects you to return it's whole size. Which means if they invest from a $50M fund and they put $2,5 in your startup they expect to exit at 20x. To raise the round with them you need to convince them strongly that a) should you deliver you will be worth enough to return 20x and b) the odds of you succeeding is much better than 1 in 20. A rule of thumb is a chance estimated at 2-3 divided by the number of investments they plan with the fund. The reason is that they expect 2-3 wins in the cohort.

Understanding the investor perspective is crucial for anyone looking to pitch their business ideas or secure investment. Here are some effective ways to do so 1. Research the investor 2. Know your numbers 3. Develop a compelling value proposition 4. Present a solid business plan 5. Be prepared for questions and objections 6. Demonstrate passion and commitment: 7. Network and build relationships By understanding the investor perspective and effectively communicating your business idea, you can increase your chances of securing investment and achieving success in your entrepreneurial journey.

Knowing your audience by doing some research allows you to present your business in a way that resonates with the investor, increasing your chances of securing funding and building a successful partnership.

Its very important for startups to understand the way investor fraternity works. Many think that why i am not being successful in fund raising. I would say timing, clear strategy on fundraise and a lot of luck will bring success. Analysing 500 startups to invest is one is a typical metric for VC investments. This is even higher for an early stage investment. Understanding below is very critical to chart out an effective way : 1. check if the investor is -sector and stage agnostic - sector and stage specific 2. recent investments - these trends will help you to understand why they have invested 3. recent exits - these will prove the success or failure of investors

Figure out what they want and give it to them whenever possible. Communicate with them often. Never take them for granted. If you treat them well, they will respond with other referrals and assist in building the company.

Uma das melhores formas de conseguir um feedback sincero é fazer um pitch sem comprometimento. Ao invés de pedir investimento, busque VCs para simplesmente coletar feedbacks, sem compromissos. Dessa forma os feedbacks serão mais sinceros e você ainda pode despertar o interesse de algum investidor indiretamente.

In my experience feedback from the investor is always important. Formally and informally after your pitch and for general suggestions. It will help you to make your vision as an investor. You can find out your mistakes and correct them for your future references. Think like an investor you need to know about the investor as well. Ask for feedback this will help you to grow as an investor scale as well. Investors worry about, strong points and fill the gap in your pitch and make your pitch more relatable for investors.

This is a great to learn from your audience and potential partners. When asking for feedback, focus on specific aspects of your pitch or business that you want feedback on, such as your value proposition, market opportunity, or financial projections. This shows investors that you are thoughtful and strategic in your approach, and it can lead to more meaningful feedback. Also, be open to receiving both positive and negative feedback, as both can help you improve. Finally, follow up with investors after implementing their feedback to show that you value their input and are committed to continuous improvement, and keep them posted on your progress.

Whilst the base deck can be same, the way you story board the story should differ to each investor. You gotta remember the quote from Michael Jordan to succeed in fundraising. "I have failed over and over again, thats why i succeed" Feedback loop is very important in success of your startup, be it with customer or investor. Feedback can help improve on the mistakes you have made. After each and every pitch in your fund raise journey, please ensure you followup for feedback whether they say "yes" or a "no". However you need to "cut the noise" and focus on the main point you want to takeaway from what an investor says. Its always good to build relationship with investors as many as possible irrespective they are funding you or not.

Uma das melhores formas de saber como o investidor pensa é consumir conteúdos em podcasts, vídeos no youtube, entrevistas, painéis e palestras em eventos. Ligue um google alerts com o nome dos principais investidores aderentes a sua tese que você queira captar, e ai vários conteúdos vão surgir. Em paralelo, converse com quem já captou com eles para entender o modus operandi da coisa. Além disso, você pode procurar estudar sobre portfólio de inovação, a distribuição e alocação de capital segue princípios bem semelhantes!

Learning from peers is a best way to improve chance of your fund raise. Peer founders can share their feedback on the following : 1. They journey of fund raise so far, highs and lows 2. Peer views on your story as far as pitch is concerned 3. How peers have faced and managed rejection so many times and still trying hard. 4. Most importantly how they were able to continue pursuing and making byte sized progress irrespective if the fundraise has happened or not. Make it a point to meet other founds through networking events, workshops, investor events, cohorts etc. Dont get excited by seeing funding success, instead talk to the founder who succeeded and see what you can learn from it. How many founders do you talk in a month ?

There are two things to understand with investors in my opinion. An investor is guided my the value he brings to his LPs and he’s thinking like you’re thinking… on other topics. In most cases a VC’s primary focus is your success and a very good financial return on investment, so help him understand how his investment now is going to be worth 100x this much in 5 to 6 years. Second, in early stages, it’s the team that makes or breaks an investment and his analysis of a team is similar to you hiring a new talent. Use this analogy.

When I work on an investment document, I create a sophisticated storyboard that showcases what an investor would think at each stage. This sort of role-play is the best way to indicate whether the document will be appreciated.

When you think like an investor, you are essentially stepping into a mindset that seeks clarity, feasibility, and growth potential. To add value, consider deepening your analysis by identifying specific metrics or KPIs that align with investor expectations. Also, consider integrating market research findings or testimonials into your pitch can provide tangible evidence of market demand and customer satisfaction.

Thinking like an investor while raising funds is the most toughest thing to do ! Key things to understand about investor's mindset : 1. He has a set of rules and framework to follow 2. The investor always want to see the investment grow over 5 times 3. Investor has to raise money from LPs to invest in your startup and is responsible to show returns. 4. Your investment will compete over multiple startups in front of investment committee while taking decision. After an initial shortlist, an investor takes needs more than 10-15 discussions with you before they present to their internal committee. Investor always wants to validate your plan and assumptions behind it with ground reality and wants to understand how you progressed so far.

At the end of the day, every investor wants a return on their investment. The amount of return will of course vary depending upon the type of investor but the core remains the same: bang for your buck. So it's really important that you benchmark yourself. Benchmarking is the process of comparing your business performance, strategy, and practices with those of your competitors or industry leaders. Benchmarking can help you identify the best practices, standards, and trends that investors look for, as well as the gaps and areas for improvement in your business. It will greatly help you in delivering a pitch that resonates with the investor because you will be ready to answer all the pain points.

Direct engagement: Engage in conversations, ask questions, and seek feedback from investors. Research & observation: Analyze their portfolios, read their publications, and follow them on social media. Empathy & simulation: Put yourself in their shoes, anticipate their concerns, and practice pitching to simulated panels. Additional resources: Stay updated on market trends, investment statistics, and seek mentorship from experienced investors. Continuous learning: Consistently engage in the above activities to gain valuable insights and improve your chances of securing funding.

In my opinion, looking at the investors recent actions or completed transactions would provide an insight/indication about their investment strategies which in turn would help in tailoring the pitch to demonstrate the value they will get by investing in your company.

Understanding investor's perspective is not crystal gazing.. Its an iterative process and be ready for a long, lonely journey akin to a roller coaster. While many startups became successful without raising institutional investments, raising funds will help you succeed if you plan it well. Few more pointers : - Money is only a commodity in the financial industry and investor should bring lot more than just funds if you want to really succeed. - Ensure you understand what an investor brings and how he can add value rather than just the money. - Talk to the founders where any prospective investor has already invested. - Understand the persona of the investor you are talking to before interacting with him

Most founders reach out to investors blindly even without considering the fact that their venture may not match the investment thesis of an investor. Other major things to consider: - Cheque Size - Valuation comfort - Sector preference - Existing portfolio Research well through linkedin before reaching an early stage investor. Most of them will be actively sharing their thoughts.