Investors are Customers - Your Business is the Product

Welcome to the third edition of Value Bites! This week, I’m reflecting on key insights and strategies to keep in mind as you navigate the business and investment world. Here’s what’s on my mind:

The People You Have Around You Are More Valuable Than What You’re Working On: As Kheston Walkins wisely put it during his podcast interview, the strength of your team and network often outweighs the project itself. Surround yourself with people who support your vision, bring complementary skills, and help drive your success.

Investors Are Customers – Your Business is the Product: Think of investors as customers who are buying into your business. Frame your pitch and selling approach with this mindset. How does your business address their needs and concerns? Your approach should align with what will resonate with them.

Getting Your Target Investor Right Is Just as Important as Getting Your Target Customer Right: Identifying and understanding your ideal investor is as crucial as pinpointing your target customer. Aligning your pitch with investors who are genuinely interested in your sector, stage of growth, and geography can significantly increase your chances of securing funding.

Protect Your Investors - A Prudent Approach: Investors are putting their trust and capital into your business. Protecting their investment means transparent communication, ethical practices, and a clear path to return on investment. It’s not just about securing funds; it’s about maintaining trust.

The Wishful Thinking - Being a Shareholder in Favorite Businesses: Imagine being a shareholder in all the businesses you regularly support. While it's a nice thought, it highlights the potential for deeper engagement with companies you believe in. Look for opportunities to invest in or support businesses you’re passionate about.

VC Firms Don’t Always Have Money (Dry Powder) to Invest – Few Will Admit When They Don’t: Venture capital firms don’t always have funds readily available. Many are in the process of raising additional capital or facing temporary dry spells. Understanding this reality can help manage expectations and guide your funding strategy.

Individuals and Angel Investors Can Move Faster: When raising smaller amounts, such as up to USD 1 million, individuals and angel investors often offer a quicker path to funding. Their decision-making process can be less bureaucratic compared to institutional VCs, which means you might secure investment faster and with fewer hurdles.

That’s it for this edition!

I hope these insights help you navigate your team dynamics, investor relationships, and fundraising strategies more effectively. Whether you’re focusing on team strength, targeting the right investors, or exploring faster fundraising methods, these tips are designed to guide your decisions.

Got feedback or questions? Hit reply, drop a comment, or reach out—I’m here to help. If you enjoyed this edition, don’t forget to subscribe so you don’t miss out on more practical tips and strategies!

Keep pushing forward and stay tuned for the next edition!