cloud network hunting note: the following article, from the investment agency Arnold, founder Paul Arnold. He said: “to allow investors to help you, this is very rare and influential founding talents have a skill.” It can see, the founder of this is too little.
1, understand the investors do
the first thing you need to know: investors work, is to give the company value. They returns through three ways: 1, “identification” good company; 2, after the investment, to the company value; 3) to help company “exit”. And one of the second point, is the key.
that is to say, each of the founding team, all should try our best, to get the most from investors. Although won’t stay with you day and night, but in solving “special specific questions”, investors often brings revolutionary results.
2, give investors the column “wish list”
entrepreneurs should set aside a time each month, a concise outline, and then take a, consider every investor, you can help. To tell the truth, as an investor, I especially like entrepreneurs a “wish list” for me, and told me that he hope to complete the schedule, the desire to include: ideal customers, strategic partners, or they want to have the associated risk investment institutions.
because information transparency can polish my eyes, let me no matter where, all the attention on the “opportunity” : think about it, when investors decide how to arrange your time, time with such a list, and think about how to take you to one or some of the right front. This will bring to startup?
3, make deals
there are few things in the world, to Make the deal happen “faster to build value. And investors, and generally to establish key value in the following respects: help founder and a major clients start a business; Introduce a key partner to founder; Founder of the next round of funding for the company, to help build relationships and other investment institutions. Here aside: investors have huge and professional contacts, in fact, many investors have actual operation and the background of “deals” experience, they are natural “deals” accelerator.
4, sales and business development
to complete the “sell” the most useful way is to: email updates on a regular basis. So that investors will have a lot of work to do, including provide specific customer name, or provide a good partner. As an entrepreneur, if you know your investors on the network, have some what person, you should immediately active attack, directly ask whether they can be used as “agent” you help you.
this is efficient, because: a seed investment of entrepreneurs, I had do weekly email update with me, about the sales process, and then some of the most key goals. If you can’t do it every week, so at least once a month to send, and remember in the mail list, all recent business situation and business status.
I would like to emphasize: investors can only under the condition of you always keep a “transparency” to help you. Although this sounds like common sense, but there are a surprising number of founder, only to get good grades in the company, issued a “update”. : they are worried that if the Shared clues, once the result is bad, will investors see the company bad, weak and signal behind rivals. I must say: this fault. You should investors experienced understand: not all “clue”, substantial transactions, and do we understand this line, every month there are always sales off-season and busy season. And the worst is: if we don’t know where laid a hand on him to help you, we can’t bring to the company with a substance transformative value.
5, the next round of funding
existing investors is your best channel, and they shall be corporate investors into late on your side. You need to do is: to work with them as soon as possible, synchronous round the target. To talk, let them know how to help you, to introduce you to who should be (this is the most important), and how to position the company growth. Investors so, give you a list of all of you hope that the next round of investor.
recently, I’ll call my investment of a founder, says he is going to strike for the next round of funding, and hope to get help. Over the next month, we talked many times in a week, and in return for a lot of material, and determined the company has the best direction. Founder and I work together, to let him understand the differences in series A investors, refine his wish list, help him set up the information they need to show, at the same time, to the best of my ability to help him and he wants to establish relationships of investors to do the most are introduced. There is no doubt that this accelerated A round “Term Sheet” provided.
6, build team in
help you hire the strongest team, is one of the most valuable thing you can do. They usually have a large network, especially those very senior senior key role, but really, you should launch the company’s board of directors, the role of prey for you.
please make sure that everyone, know that you are looking for suitable person corresponding post. When investors email updates, also to include company vacancies. If you are an angel in a particular field in-depth industry resources, and asked him to help in looking for a specific role. And early use of LinkedIn insight into your network of investors, and tell him what you want to know.
7, employment conditions
a entrepreneurs recently sent me a letter the role of a very difficult to recruit engineers for books, expounds the ideal candidate, on a personal and technical aspects of the “quality”. The “specification”, than those who often appeared “rock star of the back-end engineer” are useful, dramatic characters I recommend the narrow scope, let me direct the focus to the right people.
I said something you don’t know, your investors are easily and too much of a net, and the error dialog, lead to waste of energy and resources, so to achieve better results, you should try to through the economic employment conditions, with narrow range.
the other thing is: a few years ago, I was thinking about a popular new company senior positions, as shown in the chief executive, and she took me to see the chairman of the board of directors of the company. This “double confirm” approach is very clever. I think: consciously balance yourself, and with some distance to your daily life in the “view” is a good thing, especially if you’ve not to hire the person high level position. Many cases show that has the correct investors to participate in, will help you maintain high recruitment threshold, or enhance talent standards.
8, to guide the company grow
if you’re smart enough, investors according to the specific industry knowledge, chose a particular investor. But the problem in, you will take advantage of those specific professional knowledge? When you don’t know what to do next, investors sell agent to aid from you? If not, you should go to learn.
and early investors do you think of “most difficult” issues, and this will be a chance, let them help you to reduce interference: spend five minutes, give you the answer, than you spend a few hours, to Figure out where is the problem better.
really deep into the industry and the strategic issues, often spend a lot of time alone. I suggest: founder regularly and VC and angels do some good, quality, talking face to face. Write it into the agenda, perhaps the best advice is: let some entrepreneurs had entrepreneurial experience types of investors to participate.
create and operations of the company, it is an area most founder for assistance. Now, these areas have a lot of change, you need to be consider by “organizational structure”, also need regular “first time” to create some processes, systems and indicator, you need a way, to manage your sales growth performance and the engineering team. But over time, you also need to increase the specific functions. There will be a lot of changes in the mobile, experienced these investors, can help the founder in the first time to do the right thing.
in fact, in the “big picture” open your eyes, is a work of investors, founder of the use of vision of investors. If, have who will participate in affect your macro trends in emerging enterprises, that is they. Investors will see things up or down the line, will also see a lot of relevant competitive positioning, target market and product review method. You just need to give them information on a regular basis, to communicate with them, these are all about “expectations” set: if you want to be when they have a new idea, will give you E-mail, then encourage them to do so. You know, VC and angel are two things to do balance, that is: “to help you out,” and “not to interfere in the path of the you want to”.
9, and investors “separate” set goals
here’s a period of the most influential, the founder of the investors’ dialogue with him. He asked investors: what is the next six months, you promised to give the value of the target company?
that sounds harsh, but we don’t think so, because it actually made investors more clearly know yourself clearly and health responsibility, the result will make everyone better. Again, this could make something clear, when discussing the follow-up financing, who is really as its commitment to bring to the company value.
10, investors will be given time
if they don’t have to, that is not what happened to him. Before let investors into the board of directors, at the same time, you need to set a time “expectations” for investors. To discuss a potential investment, to tell him: “we would like to find a, can promise in one month X hours to help us grow investors.” Again, in your decision about these carefully.
11, regularly updated email
you need to give investors “can help you to” context. Email updates on a regular basis to ensure they can keep up with the speed of the specific request you do. My advice: each quarter at least two updates, including your most recent win the war, and at present in the product development, marketing, recruitment and financial challenges.
recently, there was a CEO and I said: “I should send quick email updates every six weeks, it will reduce the various communication cost when I seek help.” The fact is such.
12, narrowing the scope of
when you dialogue with investors, focus on the biggest challenges in your current phase, don’t pull the other too much.
13, thank you to ensure the public investors help
everyone likes to know his role effectively, and let people appreciate. In this way, they will be more willing to help next time.
14, don’t be afraid of your investors
maybe they more senior older, or more remarkable achievement, but don’t be afraid to “attract” them regularly. If you take them as companion, showed a, like confident in communicating with “peers”, they will respect you more.
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