Maximising Engagement with Investors in 2023: How to Do it?

This is a great time for entrepreneurs to review their relationships with the investors for startups or seed investment for startups as they prepare for the New Year and wind down from a challenging year. After a year of quick innovations and changes in our sector, more quick turns and an increase in post-pandemic activities have become a reality. This trend will continue to dominate the investment landscape. It is also admitted that the constantly shifting Investor Relations (IR) landscape is anticipated in 2023 and beyond. Facing a year of altered communication strategies, and workflow-changing artificial intelligence (AI) tools, investors will keep their 2022 pattern of tighter strings.

A constant check on fundraising pipelines

Startups should focus on tracking their investors’ activity by following a pipeline or signing up for their newsletter

A fundraising pipeline can now be shared via a link. This enables a startup to request introductions from current investors or advice from peers about potential startup investors in your pipeline. The colleagues or investors can then quickly comment to introduce companies to investors they know. Newsletters formerly reigned supreme in the world of communication. Most startups should anticipate speaking with 50–100 seed investors throughout a fundraising exercise. They can schedule email reminders for when to follow up with potential investors in order to remain on top of their ongoing talks. This is a great technique to quicken the fundraising procedure and return to what really matters: growing your organisation. Use your database to provide straightforward and "clean" company updates, such as the most recent news, a video, or a link to the company's most recent presentation. Credibility can be gained by pitching your story to journalists in the financial media or in a particular industry and gaining top-tier media.

Building Personal Relationships

With in-person meetings and efficient communication, founders could level up their investor relations and strike when the investment iron is hot

It is important to know whom you have selected to work with, just like in any long-term relationship. Like everyone else, investors have unique personality features and occasionally corresponding flaws. Some investors could work on being more diligent. They might require more time because they have made too many commitments, or they can just be mentally ill. Whatever the cause, it is your responsibility to be organised with your requests and to follow up frequently if you need something from them. At the first evidence of subpar corporate performance, some investors react too quickly and ineffectively. They might see only doom and gloom and agree with every depressing market opinion. Before pursuing one option, it is best to have a few well-thought-out alternatives on paper. It's possible that some investors have enormous egos that will show when you disagree with them. This characteristic is the most difficult to deal with because any dialogue is focused more on power dynamics than on actual content. If you have such an investor, be sure to hold fact-based conversations and establish (often and early) who will make the decision.

After nearly two years of networking behind a screen, the C-suite spent 2022 re-entering the outdoors. Investors stopped picking up their phones as a result of digital marketing, which however made it simpler to deliver personalised email marketing campaigns. It is anticipated that in-person meetings and group presentations will gradually return due to decreased travel expenditures and the advantages of technology, returning to the unrivalled value of developing connections with a personal touch.

An eye-catching Quality Pitch Deck

The business concept and story of creating it should be included in the pitch which needs to be very innovative and communicative

A pitch deck is a PowerPoint presentation that communicates business ideas while presenting the company. It should not be mistaken for a typical slideshow with a selection of random slides, though. It must be original, well-researched, attractive, and educational, but it should not sound overly legalistic. The ability to impress an investor for business will depend on the company pitch deck, presentation abilities, market research, and agility. The only method to provide value to the firm is through a solid pitch deck because raising funding from investors is a difficult challenge for startups due to the lack of resources and market experience. Since this is typically the initial interaction with investors, one must establish credibility in order to have further discussions. The pitch deck makes up for the absence of revenue forecasts by boosting investor confidence in the company and assuring them that the startup has the ability to succeed and expand quickly. Company owners should not be afraid to incorporate investor comments into subsequent rounds of funding, though. Given the value of business pitching for ensuring the company's smooth growth, owners should strategically showcase the company to investors. And if companies are completely lost, there are institutions that will assist to raise money effectively by contacting investors in US and Venture Capital Firms Canada to help startups to raise funds.

Be Factual rather than being Emotional

Give accurate and thorough historical reporting, focusing on the financials but not exclusively

A corporation will already have an investor familiar with the market and industry trends if they are investing actively and managing their portfolio. They may be a great resource for information on issues like: How are other businesses growing annually at my stage? Who is a B2B software company's top sales recruiter? What valuations are businesses in my position receiving? What is the current opinion on buying their own space? However, entrepreneurs could want to have more in-depth discussions with their investors. Rather, start by outlining the options using data from the business and industry. In order for a sales representative to close a contract without having to hold several meetings with various stakeholders, the majority of infrastructural tools still need to be accessible via a self-service option. Asking investors how recent changes in profitability have been affected by the fact that the majority of the companies in their portfolios have pursued product-led growth as a GTM strategy might be beneficial. The investors may know numerous CFOs, attorneys, accountants, and other VCs whom they can introduce owners to, if they have been a VC for a long time. Companies should use that as an advantage. Finding product-market fit may prove to be easier with the assistance of an investor with recent product experience.

JC Team Capital is a Canadian based venture capital firm that provide seed funding to early-stage startups to take the businesses to the new heights.