In our fourth Flat6Labs StartSmart Webinar, Mike Preuss, Co-founder & CEO of Visible.vc along with Marie Therese Fam, Managing Partner of Flat6Labs Cairo, discussed how startups can approach investors virtually but effectively during the pandemic. Mike and Marie highlighted how you can leverage KPSIs and metrics to win over investors, and how it is virtually possible to communicate all of that online.
Cash Has Never Been More King than today
How you will be managing your burn rate in the upcoming months is much more important than how much you are growing nowadays. Investors will be looking at your ability to to maintain cash flow, while still running your business, Mike said.
Send consistent updates
Mike said that in one of their surveys, they have discovered that founders are more likely to get investments if they are consistent with their reports to investors, in fact it increases their chances by %300. During the COVID-19, investors will likely be looking at startups that has a record of maintaining their reports. Most founders can’t raise because they don’t update investors regularly.
Where You See Failure, Investors See Opportunities
From developing multiple relationships with startups and funding many, investors develop this pattern and skill to recognise troubles and opportunities. If an investor sees that your metrics haven’t been met for this month, they might consider funding you or providing you with the resources to help further grow your business. Don’t fall short on sending your reports as much as your investors want, and compare on a month to month basis.
Consistence Cadence Will Help Your Investors Fully Trust you
Instead of micromanaging you into sending reports, setting clear KPIs, and metrics, or having unreasonable demands of you because they don’t really understand the nature of your workflow, you will give them what they want beforehand, so that automatically stops you from getting innumerous requests. In the eyes of the investor, you are an active and an engaged entrepreneur. Consistent cadence also gives you time to reflect on your operations, and what needs to be done or changed.
If You Don’t Need The Money, Don’t Raise The Money
Some bad investors will be looking out to getting the maximum out of your business for little change. You have to be careful while choosing your investors during the COVID-19 pandemic, and if you can maintain your position in the market and operations, then there is no need for it.
Make sure to join our upcoming Webinar on May 5th, 2020 with Roxanne Varza, Director of Station F along with Faten Aissi, Marketing & Outreach Manager of Flat6Labs Tunis. For more information and to register, click here.