How can you handle difficult conversations with investors effectively?

Be a great listerner. Never make an argument out of the converseration. Respect others opinion and respectfully share your opinion

Active Listening: Hear out their concerns without interrupting. Empathy: Understand their perspective and show empathy. Clarity and Honesty: Be clear and honest about the situation, avoiding vague or misleading information. Solution-Oriented Approach: Focus on finding solutions rather than dwelling on problems. Follow-Up: Commit to following up on any unresolved issues or concerns.

Before you even invite a conversation with your investors, have a clear objective as to what you want to achieve from the conversation. Most difficult conversations derive from poor business performance (vs. budget). While CEOs may feel that the main objective is to simply "share the bad news" with investors, the consequence of the conversation will inform investors' trust and confidence level in the CEO's performance. Approach the conversation as follows: - Present the facts of the negative performance - Explain the 'why' behind the performance (more important to investors than the actual results) - Describe actions you're implementing to fix the issue - Solicit feedback This approach will engender confidence rather than erode it.

One most important aspect I want to highlight is focused and clear conversation when you are meeting an investor. One need to be very precise and clear about business proposal/product, GTM strategy, time period, cashflow and finally revenue generation and growth. Remember investor is bringing the fund and it is the most important he/she should get a clear, transparent picture of the ROI.

Difficult conversations could be handled very easily, by making effective communication to investors. Investors are organization clients and are to be treated as cows, and to be nourished in the same manner, the better we nourish the cow, the better we get the milk to feed. The better we nourish the client's or Investors' doubts and his/her forecasting, the better we'll receive growth to feed ourselves. Before starting the communication with the investors, be clear with the point you wish to make transparent to the investor and take all the necessary steps while being in a discussion.

There is no one particular best time; it is more a matter of matching the phase of the company to the right investors who invest in that phase - seed investors invest at the seed stage, angel investors at the angel stage, and Series A investors at the Series A stage. All that being said, the longer you can go and the more you have to show before you engage with investors, the better terms you are going to get. If your company is two engineers, a PowerPoint, and a dog, no one is going to pay a lot (in terms of valuation) to invest in that. But if the product is built and you have a little customer revenue, that is a much less risky proposition and investors will give you a higher valuation

En el sector bancario, considero que el momento adecuado sería previamente a que el cliente sienta la necesidad de ser asesorado por un problema en su decisión de inversión, simplemente hacerle notar que cuando lo necesite allí estarás. Por otra parte, siempre que se pueda creo que el canal más adecuado sería el presencial. La comunicación es clave y empieza mucho antes de la etapa de inicio de una conversación. Todos los detalles cuentan.

Allow investors to express their concerns fully without interrupting. Demonstrate active listening by paraphrasing their points and asking clarifying questions to ensure you understand their perspective. Acknowledge the concerns and perspectives of the investors. Show empathy by understanding their point of view, even if you don't necessarily agree with it. However, transparency is key to building trust with investors. Be honest about the challenges or issues facing the company and provide clear, concise explanations for your decisions or actions.

Según mi experiencia, parafrasear algunas de las últimas palabras es una buena técnica para intentar conseguir más información relevante que ayude a entender que objetivo concreto buscar el inversor. Un ejemplo sería: ....... con la mayor rentabilidad posible. - ?mayor rentabilidad posible?. De esta forma te puede esclarecer que esta buscando alrededor de un 5-10% de retorno anual por ejemplo en un fondo de inversión.

A difficult conversation assumes that a conflict has arisen. First, take an inventory of previous conversation rhythms & own anh breakdowns. Have you been keeping them aware of progress every month or quarter? If yes, then most things have been discussed and a “breakdown” was an unforeseen situation and will occur as less of a shock. If no, own that first then be real, direct and concise about the issue. I have found it helpful to: 1. Plan and prepare your notes before the conversation with facts of past history 2. Here’s what we’ve done so far 3. Here’s what happened (name the challenge) 4. Here’s what we plan on doing about it. 5. How do you feel about it? 6. What do you think about our approach and what do you think we’re missing?

En las recomendaciones de inversión hay que ser especialmente cuidadoso. Todos los datos son altamente confidenciales. Además en algunos países hablar de dinero puede ser tema tabú. Por tanto, generar un clima de confianza, naturalidad y respeto es clave para que el inversor sienta que puede hablar y ser escuchado con total libertad.

Usually an investor's interests will be aligned with the CEO's interests. The good news of this relationship is that you are starting from a win-win scenario. When challenges arise that threaten this alignment of interests, the main objective for both parties should be re-establish the win-win alignment. An example: - The CEO wants make a big investment - Investors are nervous about the projected return This puts the two at odds. A middle ground such as making a smaller investment in the same category returns the relationship to a win-win scenario. If it ends up working, the investment can be expanded and both the CEO and investors win.

towards potential solutions or mitigating strategies. Present proactive plans to address concerns and reassure investors about the company's direction. Balance discussions of challenges with updates on achievements and progress. Highlighting positive developments can help maintain investor confidence and perspective.

Según mi experiencia, y contrario a lo que muchas personas puede creer, conseguir un acuerdo win-win es complicado. A veces puede dar la sensación de haber llegado a ello, sin embargo la necesidad de una de las partes le ha hecho firmar o acordar unos términos que realmente no desea. Como contraparte hay que asegurarse que realmente se esta beneficiando las dos partes lo más equitativamente posible, sino, puede que a medio y largo plazo el acuerdo carezca de fortaleza.

After the conversation, follow up with investors to address any outstanding questions or concerns. Providing additional information or updates demonstrates your commitment to transparency and responsiveness If the conversation becomes particularly challenging or complex, consider seeking advice from mentors, advisors, or experienced colleagues. They may offer valuable insights or help navigate difficult situations.

Prepare-se adequadamente: Antes da conversa, fa?a uma pesquisa detalhada sobre o investidor, seus interesses e preocupa??es. Esteja preparado para responder a perguntas difíceis com dados e análises sólidas. Seja transparente: Seja honesto e transparente sobre os desafios e oportunidades do negócio. Evite ocultar informa??es ou fazer promessas que n?o possam ser cumpridas. Ou?a atentamente: Demonstre interesse genuíno nas preocupa??es do investidor e ou?a com aten??o suas opini?es. Isso ajuda a construir confian?a e a encontrar solu??es que atendam às necessidades de ambas as partes.

Mantenha a calma: Mantenha a calma e evite reagir emocionalmente a críticas ou questionamentos. Responda de forma profissional e mantenha o foco nos objetivos da conversa. Ofere?a solu??es: Em vez de apenas destacar problemas, proponha solu??es concretas e viáveis para os desafios identificados. Mostre que está comprometido em resolver os problemas e agregar valor ao negócio. Acompanhe: Após a conversa, fa?a um acompanhamento para garantir que todas as preocupa??es tenham sido abordadas e que o investidor se sinta satisfeito com as respostas fornecidas.