Key Takeaways
- Prepare a polished pitch deck and executive summary
- Ensure financials and cap table are clean and investor-ready
- Understand basic term sheet components
- Be ready to answer tough investor questions
1. Investor Materials
- Pitch Deck: Clear, visual overview of your business, solution, market, traction, and ask.
- Executive Summary: One-pager with essential business highlights for scanning.
- Business Plan (if applicable): Used for deeper diligence or conservative investors.
2. Financial Preparation
- 3–5 Year Projections: Revenue, costs, assumptions, and break-even analysis.
- Historical Financials: P&L, balance sheet, and cash flow if your business is operational.
- Cap Table: Accurate and updated table showing ownership and past funding (if any).
3. Know the Term Sheet
- Valuation: Be prepared to explain and justify your ask.
- Liquidation Preferences: Understand the impact of 1x or 2x preferences and participation rights.
- Control Rights: Review board seat requests and voting provisions.
- Dilution Protection: Be familiar with anti-dilution and pro rata rights.
4. Prepare for Investor Questions
- What problem are you solving and why now?
- What’s your go-to-market strategy?
- What traction do you have?
- How will you use the capital you raise?
- What are your key risks and how will you mitigate them?
Pro Tip
Always tailor your materials to the type of investor you’re speaking with—angel, VC, or family office. And remember: confidence comes from preparation.