Y Combinator Startup Class #19 : How to talk to investors 2/2
The document outlines key elements for engaging with investors, including preparation (before the meeting), conduct (during the meeting), and follow-up (after the meeting). It emphasizes the importance of a clear pitch, understanding market dynamics, and collaboratively engaging with investors. It also provides common mistakes to avoid and advice on how to maintain focus on growing the business rather than just fundraising.
Introduction to investor meetings, including key stages: before, during, and after the meeting.
Focus on mock pitch sessions for seed stage capital; identifying good vs. bad pitch behaviors.Critical elements of a successful pitch: clarity, market insights, team strengths, and asking for funds.
Steps after the meeting: follow-ups, creating deal heat, investor diligence, and company building.
Y Combinator Startup Class #19 : How to talk to investors 2/2
1.
Talking to Investors
December 2014
Dalton Caldwell - Michael Seibel - Qasar Younis
2.
What
we
will
discuss:
-‐ Before
the
meeting
(Michael)
-‐ During
the
meeting
(Dalton)
-‐ After
the
meeting
(Qasar)
-‐ Q&A
3.
Overview
1.
30second pitch
2. 2 minute pitch
3. When to fundraise
4. How to setup investor meetings
0/4
How to Pitch
4.
1 30 secondpitch
How to Pitch
What does your
company do?
How big is the
market?
How much traction
do you have?
1/4
5.
2 minute pitch
How to Pitch
• Clear 30 second pitch
• Unique insight
• How you make money
• Team
• The Big Ask ($$$)
2/4
6.
When to Fundraise
How to Pitch
Growth
Real World :(
Ideal World :)
3/4
7.
How to SetupInvestor Meetings
How to Pitch
$
Think
Parallel
$
1 Team
Member
$
Warm
Intros
4/4
8.
What
we
will
discuss:
-‐ Before
the
meeting
(Michael)
-‐ During
the
meeting
(Dalton)
-‐ After
the
meeting
(Qasar)
-‐ Q&A
9.
Mock
pitch
sessions
-‐ The
goal
is
to
highlight
good
and
bad
behavior
(not
mimic
a
real
conversation)
-‐ Focused
on
seed
stage
capital,
first
time
founders
-‐ Dalton
=
Investor,
Qasar
=
Founder
-‐ 2
sessions:
weak
pitch
and
a
good
pitch
11.
Avoid
common
mistakes
Introduction:
Make
sure
the
listener
understands
what
you’re
working
on.
Progress:
Know
your
numbers!
Market
size:
Ideally
build
bottom
up
analysis
Insights:
You
should
understand
something
that
is
counter
intuitive
Team:
Your
team
should
be
uniquely
suited
for
this
business
Asking
for
money:
Drive
the
conversation
to
a
conclusion
13.
Hallmarks
of
a
good
pitch
-‐ Capture
interest,
told
an
interesting
story,
engage
with
the
listener
-‐ Demonstrate
insights
and
command
of
the
market,
passionate
not
dismissive
-‐ Collaborative
meeting
more
than
an
interrogation
-‐ Actually
ask
for
money
14.
What
we
will
discuss:
-‐ Before
the
meeting
(Michael)
-‐ During
the
meeting
(Dalton)
-‐ After
the
meeting
(Qasar)
-‐ Q&A
15.
After
the
meeting
-‐
Follow
up
(anything
by
a
check
is
a
“No”)
-‐
Work
on
creating
deal
heat
(supply
/
demand)
-‐
Do
diligence
on
the
investors
-‐
Know
when
to
stop
(addicted
to
fundraising)
-‐
Build
your
company!
(fundraising
is
not
the
goal)
16.
What
we
will
discuss:
-‐ Before
the
meeting
(Michael)
-‐ During
the
meeting
(Dalton)
-‐ After
the
meeting
(Qasar)
-‐ Q&A