Investment Readiness

1. Investment Readiness
How to prepare to attract the money you need for your business

2. The importance of investing in
your own financial readiness:
Poor financial
decisions are among
the main reasons why
Canadian SMEs fail.

3. INVESTORS:
FEW small
businesses
consider them
at start-up

4. Investors are
different from
Lenders
They want bragging rights:
Exceptional
products
Exceptional
teams
They want to make money

5. What do investors look for?
Founding team Market
Product Finance

6. What are investors looking for?
Founding Team
• Entrepreneurial Passion
• Previous Track Record
• Willingness to learn and be
mentored
• How your ‘team’ operators
Size of Market
• Fast growing?
• Can you dominate your niche
• Related products in other
markets

7. What are investors looking for?
• Product
• Must have pain-killer solution
• Differentiation
• Easy to demo benefits
• Customer experience and can
you make them happier
• Finance
• Your financing strategy
• Your financing strategy
depends on your business goal

8. What do Investors Look for to DE-RISK their
investment?
1. A dynamic market opportunity:
MOMENTUM

9. What do Investors Look for to DE-RISK their
investment?
2. Your Team’s EXECUTION capacity:
Founder needs to show they know what
they don’t know and bring in key
supporters so that together they can
make it happen

10. What do Investors Look for to DE-RISK their
investment?
3. Market engagement :
COMMERCIAL TRACTION:
i.e., Understanding what your customer need and will
buy: Dynamic storytelling is important

11. What do Investors Look for to DE-RISK their
investment?
4. Investor FIT:
It’s important that the investor has
experience in your market space and can
easily ‘understand’ the importance of your
unique selling proposition (USP)

12. What do Investors Look for to DE-RISK their
investment?
5. The X factor:
• your confidence
• your preparation
• your engagement with the investor
• how hard are you willing to work on/in your
business

13. Specialized
investors are
moving into the
IMPACT market
for
entrepreneurs
that can
demonstrate
their impact
IMPACT INVESTORS
ARE DRIVEN BY VALUES
They are looking to make
a clear difference
*social
*Environmental
*Economic

14. When it comes to financial
behaviors
financial confidence is more
important than financial
knowledge when you deal
with lenders and investors

15. Before you face an investor, you must be fully
prepared and steady in your confidence
• Prepare a strong PITCH
• Be ready to avoid being trapped by defensive questions
• Always answer but move directly into ‘ASPIRATIONAL’
responses that shows you know where you are going in your
business (from ‘INVESTOREADY training)

16. Elevator pitch
everyone to pitch—20 seconds—3 sentences—clear and
succinct
Who are you?
The product I
wish to sell is :
This product
helps (your
target market –
large? Growing?)
Your value
proposition (your
product will: its
benefits)
To bring this
product to
market I need:

17. You and your Investor
BANKERS have institutional
rules to follow –its good to have
a good relationship with your
banker but s/he must follow the
rules
• Institutional investors have
targets to meet
• Private investors often
become directly engaged in
the business