Acing Founder Meetings

A clear cut game plan is essential. Useful parameters could include how much you want to invest, how many companies you want to meet with, how many companies you want to end up investing in. Having these parameters set will save time and frustration for you and any founders you meet with.

With a decision process in place, you’ll make more sophisticated decisions. Be sure to determine your investment criteria prior to talking with founders and deciding how many meetings or conversations it will take you to make your final decision. Once you do make that decision, be sure you are fully committed to it.

Remember that your criteria may not align with those of your fellow investors and that this is a good thing. The market would be incredibly boring if we were all groupthink-loving sheeple– it would also be bad news for returns. The best investments are rarely the trendiest so beware of leaning too heavily on social proof to make your decisions.

Personal conviction will take you a long way in investing –your genuine confidence and conviction in a company will often inspire your best investments. Disregard how you think an investment will make you look–the fear of looking dumb or wrong should never deter you from an investment that you really have confidence in! Trusting your process also means that you shouldn’t flip-flop nor tell a company “maybe if you get more investors”. These are both signs of a “no” or “not until later.”

Telling a founder “maybe” should be rare and have extremely good reasoning. If you don’t feel confident in your investment decision, just say no! If you’re feeling stranded in uncertainty, the best thing to do is meet with the company. By meeting the people behind the deck, you can see if you feel more convinced that it is a good investment move. Remember that if it isn’t a “yes”, it should be a “no.”

Scheduling a meeting already is a huge step forward with a company. Believe it or not, many investors have trouble just picking locations convenient for founders and being on time to meetings. In doing these two simple things, you’re already further ahead than many investors. Also, if just scheduling a meeting with the company is like pulling teeth, it’s a really bad sign.

In your first meeting with a founder, start with the basics– the absolute basics. Questions might include “What does your company do?” or “What progress has been made so far?”. While the odds are very high you already have this info, it can be enlightening to hear how the founder describes the company and their goals. If you have a follow-up meeting, then you can dig deeper into numbers and voice any concerns or reservations you might have.

Take your own pulse after meeting with a founder... Do you feel excited and energized? Did the founders work to build trust during the conversation? Could you see yourself potentially enduring tough times with these humans? Could you see them successfully running a massive company a la Google or Uber? These questions should give you strong intuition about whether or not you want to invest.

Too often, investors ghost a founder rather than giving a straight no. This isn’t Hinge! For both your rep and the company’s time, tell them straight up. If possible, try to also explain why you won’t be investing. You will likely end up saying no a lot and that is completely fine–but it’s your job to get comfortable with being upfront when you do.

When you’ve decided to invest in a company, communicate to the founder clearly that you’re excited to work with them and will be investing. From there, complete a handshake protocol and solidify the deal however you prefer. Afterwards, wire the money as fast as possible. Avoid using non-standard investment documents if you can help it and don’t ask for non-standard terms, side letters, or advisor shares.