V
Vani Kola
Managing Director at Kalaari
1185109 followers
5 mistakes while #Fundraising : 1. Playing the bluff: "I already have a term sheet. I need an answer immediately". Too often the deadline is artificial & unrealistic, compromising the founder's credibility. It leaves no room for an authentic engagement for a meaningful outcome. 2. Overvaluation: "I am interested only if the valuation is $100M". If you draw a hard line that is a big gap from the investor's assessment of the valuation, most often they will disengage. Also, negotiating down significantly hurts your credibility. 3. Pitch: CEOs should own & lead the conversation with the investors. Sometimes, the banker takes over while presenting, hurting the CEO's credibility. Investors like CEOs to have ownership of the numbers that they are committing. 4. Communication: Another mistake is not communicating the business proposition early in the presentation. Pace the presentation for 35 mins & communicate the uniqueness of the product that makes you win the market up front. 5. Feedback: Often, founders don't listen to feedback & get defensive to questions asked. In fact, questions are asked with an intent to understand the business better.
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