Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Running an Investment Process

On Friday, July 31st I presented this Slideshare to more than 50 entrepreneurs who are part of the latest OnDeck Fellowship cohort. We walked through how to run a fundraising process and how I run my own investment process as an angel investor.

  • Login to see the comments

Running an Investment Process

  1. 1. Running an Investment Process July 2020
  2. 2. Page Steve Schlafman Coach & Advisor at High Output, Angel Investor "My mission is to help founders bring their wildest visions to life and evolve into extraordinary leaders." Running an Investment Process2 Operator Investor Coach
  3. 3. Page The Founder’s Side Running an Investment Process3
  4. 4. Page End-to-End Fundraise Process Take Aways: Running an Investment Process4 5 Close 4 Manage 3 Meet 2 Outreach 1 Research • Create FOMO (your #1 job!) • Continuously evolve pitch materials • Don’t forget self-care! • Choose your investors wisely • Treat it like a sales funnel • Expect process to take 1-6+ months • Always know what stage you’re at • Maintain momentum at all times
  5. 5. Page Research Running an Investment Process5 Sources • Crunchbase • CB Insights • Twitter • VC Websites • AngelList • Midas List • Forbes 30 U 30 Tips • Do your homework • Look at VC portfolios (themes, COIs) • Seek investors with sector expertise • Identify investors in your geo • Note early-stage vs multi-stage
  6. 6. Page Investor Outreach Running an Investment Process6 Types • Cold Email • Twitter DMs • Warm intros • Matching tools • Networks + communities • "Practice" pitches Tips • Make sure they’re relevant + a fit • Get intros from founders / operators • Track in Sheets / Airtable / Notion • Monitor each stage in funnel • Personalize your communications • Don’t be lazy! • Follow up in a timely manner
  7. 7. Page Cold Email Template highoutput.co/library Running an Investment Process7
  8. 8. Page Meet Running an Investment Process8 Types • Zoom Pitch • Phone Call • "Socially Distanced Walk" • Loom pitch Tips • Be on time • Know your medium and audience • Don’t read from your slides • Balance depth and vision • Every interaction is a data point • Note common questions/traps • Leave with clear next steps
  9. 9. Page Manage & Close Running an Investment Process9 Activities • Share diligence requests • Schedule follow-up meetings • Gauge investor interest • Secure a lead • Manage offers & term sheets • Balance allocations Tips • Devote & invest the time • Follow up in a timely manner • Evolve your slides & materials • Create FAQ as appendix • Get a term sheet, more will follow • Backchannel investors • Start with lead, fill round strategically • Be patient— process can take time
  10. 10. Page The Investor’s Side Running an Investment Process10
  11. 11. Page End-to-End Investment Process Take Aways: Running an Investment Process11 5 Decide 4 DD 3 Meet 2 Screen 1 Lead • Make decisions on Monday • Spend at least 2-4 hours with team • Focus more on team, opportunity • Seek input from operators/investors • Output = quality investment decisions • Execute process over 2-4 weeks • Collect data at each interaction • Source matters
  12. 12. Page Running an Investment Process12
  13. 13. Page Memo Screen 1 Running an Investment Process13
  14. 14. Page Memo Screen 2 Running an Investment Process14
  15. 15. Page Memo Screen 3 Running an Investment Process15
  16. 16. Page Q&A Session Thanks for listening! Appendix to follow Running an Investment Process16
  17. 17. Page Sourcing Running an Investment Process17 Sources • Other Angels • Seed Funds • Multi-Stage • Founders • Operators • Cold (Email, Twitter) • Programs / Accelerators Key Questions • Is it worth screening? • Do I need an intro? • Is this a priority?
  18. 18. Page Screen Running an Investment Process18 Key Activities • Request deck + product • Review deck + materials, memo • Decide to take first meeting • Ask for more info if unsure • Get input Key Questions • Who is the source? • Is the team credible + capable? • Is the company raising < $3M? • Is there a product or demo? • Is there any traction? • What’s size/scope of market? • Am I excited to dig in and spend time? • Do I care?
  19. 19. Page Meet Running an Investment Process19 Key Activities • Send fund overview • Kick off w/ intros & objectives • Log notes in Notion template • Identify risks & next steps Key Questions • Why this idea? • Why this team? • Why now? • What’s the product? • Who’s the initial user? • What’s the market size / scope? • What has been learned? • What is the wedge / roadmap? • What are funding plans / milestones?
  20. 20. Page Evaluate Running an Investment Process20 Key Activities • Reference founders • Research investors • Schedule second meeting / pass • Get back to founder quickly Key Questions • Are the founders extraordinary? • Do they deeply understand market? • Who are the key competitors? • What’s the early advantage? • How does the company leverage tech? • What is unique, what’s borrowed? • What are points of friction, risks? • Can they grow without paid acq.?
  21. 21. Page Investing in Leaders Running an Investment Process21 Traits • Technical / product focused • Customer centric • Insatiable curiosity • Demonstrated grit / tenacity • Self-awareness • Unwavering belief • Mission-orientated Key Questions • Can they ship + build? • Do they deeply understand customer? • Do they love to experiment / learn? • Have they overcome adversity? • Do they know themselves? • Do they deeply believe? • Are they on a mission?

×