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Running an Investment Process
The document outlines a comprehensive process for running investment fundraising, emphasizing the importance of research, outreach, meetings, and managing the closing phase. Key takeaways include creating a sense of urgency, continuously evolving pitch materials, and maintaining momentum throughout the process, which can take 1-6 months. It also highlights the significance of choosing the right investors and the qualities of extraordinary founders.
Running an Investment Process
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- 2. Page Steve Schlafman Coach &Advisor at High Output, Angel Investor "My mission is to help founders bring their wildest visions to life and evolve into extraordinary leaders." Running an Investment Process2 Operator Investor Coach
- 3. Page The Founder’s Side Runningan Investment Process3
- 4. Page End-to-End Fundraise Process TakeAways: Running an Investment Process4 5 Close 4 Manage 3 Meet 2 Outreach 1 Research • Create FOMO (your #1 job!) • Continuously evolve pitch materials • Don’t forget self-care! • Choose your investors wisely • Treat it like a sales funnel • Expect process to take 1-6+ months • Always know what stage you’re at • Maintain momentum at all times
- 5. Page Research Running an InvestmentProcess5 Sources • Crunchbase • CB Insights • Twitter • VC Websites • AngelList • Midas List • Forbes 30 U 30 Tips • Do your homework • Look at VC portfolios (themes, COIs) • Seek investors with sector expertise • Identify investors in your geo • Note early-stage vs multi-stage
- 6. Page Investor Outreach Running anInvestment Process6 Types • Cold Email • Twitter DMs • Warm intros • Matching tools • Networks + communities • "Practice" pitches Tips • Make sure they’re relevant + a fit • Get intros from founders / operators • Track in Sheets / Airtable / Notion • Monitor each stage in funnel • Personalize your communications • Don’t be lazy! • Follow up in a timely manner
- 7. Page Cold Email Template highoutput.co/library Runningan Investment Process7
- 8. Page Meet Running an InvestmentProcess8 Types • Zoom Pitch • Phone Call • "Socially Distanced Walk" • Loom pitch Tips • Be on time • Know your medium and audience • Don’t read from your slides • Balance depth and vision • Every interaction is a data point • Note common questions/traps • Leave with clear next steps
- 9. Page Manage & Close Runningan Investment Process9 Activities • Share diligence requests • Schedule follow-up meetings • Gauge investor interest • Secure a lead • Manage offers & term sheets • Balance allocations Tips • Devote & invest the time • Follow up in a timely manner • Evolve your slides & materials • Create FAQ as appendix • Get a term sheet, more will follow • Backchannel investors • Start with lead, fill round strategically • Be patient— process can take time
- 10. Page The Investor’s Side Runningan Investment Process10
- 11. Page End-to-End Investment Process TakeAways: Running an Investment Process11 5 Decide 4 DD 3 Meet 2 Screen 1 Lead • Make decisions on Monday • Spend at least 2-4 hours with team • Focus more on team, opportunity • Seek input from operators/investors • Output = quality investment decisions • Execute process over 2-4 weeks • Collect data at each interaction • Source matters
- 12. Page Running anInvestment Process12
- 13. Page Memo Screen 1 Runningan Investment Process13
- 14. Page Memo Screen 2 Runningan Investment Process14
- 15. Page Memo Screen 3 Runningan Investment Process15
- 16. Page Q&A Session Thanks forlistening! Appendix to follow Running an Investment Process16
- 17. Page Sourcing Running an InvestmentProcess17 Sources • Other Angels • Seed Funds • Multi-Stage • Founders • Operators • Cold (Email, Twitter) • Programs / Accelerators Key Questions • Is it worth screening? • Do I need an intro? • Is this a priority?
- 18. Page Screen Running an InvestmentProcess18 Key Activities • Request deck + product • Review deck + materials, memo • Decide to take first meeting • Ask for more info if unsure • Get input Key Questions • Who is the source? • Is the team credible + capable? • Is the company raising < $3M? • Is there a product or demo? • Is there any traction? • What’s size/scope of market? • Am I excited to dig in and spend time? • Do I care?
- 19. Page Meet Running an InvestmentProcess19 Key Activities • Send fund overview • Kick off w/ intros & objectives • Log notes in Notion template • Identify risks & next steps Key Questions • Why this idea? • Why this team? • Why now? • What’s the product? • Who’s the initial user? • What’s the market size / scope? • What has been learned? • What is the wedge / roadmap? • What are funding plans / milestones?
- 20. Page Evaluate Running an InvestmentProcess20 Key Activities • Reference founders • Research investors • Schedule second meeting / pass • Get back to founder quickly Key Questions • Are the founders extraordinary? • Do they deeply understand market? • Who are the key competitors? • What’s the early advantage? • How does the company leverage tech? • What is unique, what’s borrowed? • What are points of friction, risks? • Can they grow without paid acq.?
- 21. Page Investing in Leaders Runningan Investment Process21 Traits • Technical / product focused • Customer centric • Insatiable curiosity • Demonstrated grit / tenacity • Self-awareness • Unwavering belief • Mission-orientated Key Questions • Can they ship + build? • Do they deeply understand customer? • Do they love to experiment / learn? • Have they overcome adversity? • Do they know themselves? • Do they deeply believe? • Are they on a mission?