Burak Buyukdemir’s Post

Your palms are sweaty, your heart is pounding: Investors are firing questions at your startup. Breathe. Here's a roadmap to navigate these high-stakes conversations. 𝟏. 𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝 𝐓𝐡𝐞𝐢𝐫 𝐏𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞: Investors are looking for growth, risk management, and return on investment. Answer their questions from this viewpoint. 𝟐. 𝐊𝐧𝐨𝐰 𝐘𝐨𝐮𝐫 𝐍𝐮𝐦𝐛𝐞𝐫𝐬: Be prepared to discuss your financials in detail. Profits, losses, cash flow - know them like the back of your hand. 𝟑. 𝐒𝐡𝐨𝐰 𝐘𝐨𝐮𝐫 𝐕𝐢𝐬𝐢𝐨𝐧: Investors buy into your future, not just your present. Paint a picture of where your startup will be in 3, 5, 10 years. 𝟒. 𝐁𝐞 𝐇𝐨𝐧𝐞𝐬𝐭: Don't exaggerate or undersell. Be truthful, even if the answer is not what they want to hear. 𝟓. 𝐏𝐫𝐚𝐜𝐭𝐢𝐜𝐞, 𝐏𝐫𝐚𝐜𝐭𝐢𝐜𝐞, 𝐏𝐫𝐚𝐜𝐭𝐢𝐜𝐞: The more you rehearse, the better you'll perform. Role-play with your team to prepare for every possible question. Remember, investors aren't just investing in a business, they are investing in YOU. Show them you're someone they can trust, someone who will steer the ship through stormy waters. This is your moment, seize it. Remember, you're not just pitching your startup - you're selling your dream. Let's hear from you. What strategies have worked for you in dealing with investor questions? Share your thoughts and experiences below. #investors #businessconsulting #startup #founders

Sometimes, it's better to turn down money than partner with the wrong investor. Here are some red flags to watch for: 🔴Reliability and Good Faith Issues: Investors who fail to negotiate fairly and transparently can jeopardize your business. 🔴Time-Consuming Tire Kickers: Avoid those who drain your time without offering substantial capital or guidance. 🔴Lack of Decision-Making Power: Ensure you’re dealing with decision-makers to avoid unnecessary delays. 🔴Excessive Concern with Current Valuation: Investors overly focused on valuation might not align with your long-term goals. 🔴Over-Negotiation and Micromanagement: Beware of investors who demand overly specific terms or exhibit control tendencies. 🔴Conflicts of Interest: Investors with competing interests can lead to strategic disadvantages. 🔴Lack of Industry Insight: Investors who lack understanding of your business fundamentals are a risk. 🔴Unreliable Financial Commitments: Financial instability in investors can risk the continuity of support. 🔴Disproportionate Attention Needs: Smaller investors demanding disproportionate time and resources can drain your focus. Choosing the right investor is crucial for your startup’s success. It's essential to vet potential investors thoroughly and prioritize those who are FAT - Fair, Aligned, Transparent - a term Zack Ellison, CFA, CAIA coined that sums up the three most critical factors for a successful partnership. Read the full article (in comments) for a deeper dive into selecting the right partners for your startup journey. 👍 Like | 🎤 Share | ♻️ Repost | 🔔 Follow Applied Real Intelligence LLC ("A.R.I.") #Startups #Entreprenuership #Founders #Fundraising #StartupFundraising #StartupTips #VentureCapital #VentureDebt #InvestorRelations

Over the past two weeks, many founders have reached out to me to thank me for the insights shared in my May column for Built In, titled "Founders, Here’s What to Look for in an Investor." One crucial takeaway: Sometimes, it's better to turn down money than partner with the wrong investor. Here are some red flags to watch for: 🔵Reliability and Good Faith Issues: Investors who fail to negotiate fairly and transparently can jeopardize your business. 🔵 Time-Consuming Tire Kickers: Avoid those who drain your time without offering substantial capital or guidance. 🔵Lack of Decision-Making Power: Ensure you’re dealing with decision-makers to avoid unnecessary delays. 🔵Excessive Concern with Current Valuation: Investors overly focused on valuation might not align with your long-term goals. 🔵Over-Negotiation and Micromanagement: Beware of investors who demand overly specific terms or exhibit control tendencies. 🔵Conflicts of Interest: Investors with competing interests can lead to strategic disadvantages. 🔵Lack of Industry Insight: Investors who lack understanding of your business fundamentals are a risk. 🔵Unreliable Financial Commitments: Financial instability in investors can risk the continuity of support. 🔵Disproportionate Attention Needs: Smaller investors demanding disproportionate time and resources can drain your focus. Choosing the right investor is crucial for your startup’s success. It's essential to vet potential investors thoroughly and prioritize those who are FAT - Fair, Aligned, Transparent - a term I coined that sums up the three most critical factors for a successful partnership. Read the full article (in comments) for a deeper dive into selecting the right partners for your startup journey. 👍 Like | 🎤 Share | ♻️ Repost | 🔔 Follow Zack Ellison, CFA, CAIA #StartupTips #InvestorRelations #VentureCapital #Founders #StartupSuccess #BusinessGrowth #Entrepreneurship #BuiltIn

Struggling with systems, policies and procedures to become investor ready? we are here to help.......... 🚀 Elevate Your Entrepreneurial Journey: Key Steps to Become Investor-Ready 🚀   As the entrepreneurial landscape continues to evolve, it's crucial for aspiring founders to position themselves as irresistible opportunities for investors. Here are some key steps to make your venture investor-ready:   1️⃣   Craft a Captivating Story: Your mission and vision should resonate. 2️⃣   Solid Business Plan: Outline your market strategy and growth plan. 3️⃣   Financial Savvy: Nail your financial projections; transparency is key. 4️⃣   Prove Traction: Showcase market validation – customers, revenue, or partnerships. 5️⃣   Build a Stellar Team: Highlight key team members and their expertise. 6️⃣   Scalability: Illustrate how you plan to scale with investor support. 7️⃣   Risk Mitigation: Address potential challenges; show you're prepared. 8️⃣   Advisor Insights: Seek guidance from experienced mentors for credibility. 9️⃣   Market Fit: Define your target market and demonstrate your solution's value. Effective Communication: Master the pitch and respond promptly to investor inquiries.   Remember, it's a journey! 🌟 Let's empower each other in the entrepreneurial realm! 💪🚀   #InvestorReady #Startups #Entrepreneurship  

Three truisms... Build strong investor relationships to propel your startup to new heights. To raise investment painlessly, start early. The best time to seek funds is when you don't need them. All rely on top notch relationships with your (potential) investors. Here's some top tips on how to nurture these crucial connections? These will transform your investor strategy. Do’s: ✅ Start Early: Build relationships before you need funding. ✅ Research Investors: Understand their interests and past investments. ✅ Be Prepared: Know your numbers and industry inside out. ✅ Be professional in your communication - top class info sheets, news letters, teasers, pitch decks, ✅ Offer Value: Share insights and ask for feedback. ✅ Align Values: Ensure your vision matches your investors'. ✅ Build Trust: Be transparent and treat investors like team members. ✅ Communicate Regularly: Schedule consistent updates. Don’ts: ❌ Rush: Relationships take time; don’t wait until you need funds. ❌ Be Unprepared: Investors expect you to know your stuff. ❌ Assume: Each investor is different; tailor your approach. ❌ Just Take: Offer value in return for their support. ❌ Misalign: Ensure shared values for a stronger partnership. ❌ Hide: Transparency builds trust; share both successes and challenges. ❌ Overwhelm: Stick to a few communication channels for clarity. Pro Tip: Seek advice not money, seek investor insights not cash. Money will follow the right relationships. Start building strong investor relationships today! My experience from raising over $400m for my clients, projects, and companies underlines the importance of the top tips above. Call to Action - book a call with me to discuss how you can improve your funding strategy (link in comments). . #Startups #Investors #BusinessGrowth #Entrepreneurship

In the rollercoaster journey of entrepreneurship, engaging with investors can feel like navigating a labyrinth—full of expectation and disappointments. I've faced my share of silence and scripted rejections, a common tale for many of us in this arena. Indeed, being ghosted or receiving a flat 'no' from potential investors can be daunting. It's human to seek validation and support for our visions. Yet, I've learnt that these moments of rejection are not personal attacks but rather pivotal opportunities for growth and reflection. Throughout my journey, more or less 95% of the investors I reached out to chose not to engage. Not an email. Nada, nothing... While it's easy to view this as a setback, I learnt to perceive it differently. The 5% who did respond were instrumental in unlocking doors I didn't even know existed. Their advice, feedback, and introductions to key stakeholders have been invaluable. This small but mighty group saw potential where others saw none, offering insights that have been critical in shaping propX_ journey. These experiences have taught me the importance of resilience and the power of persistence. To my fellow #entrepreneurs , remember that each 'no' brings you closer to the 'yes' that matters. It's a chance to learn, to pivot, and to find those who truly believe in your vision. Let's not allow the fear of rejection to deter us but instead use it as fuel to propel us forward. On that note, happy Friday and keep on grinding! #stratup #resilience #positivemindset

The most successful founders I know count pennies!💰💰💰 Startup survival is all about the art of frugality and the relentless discipline to keep the cash burn low. Yes, even when your bank balance is in the millions! Keeping the discipline to stick to the essentials and not over-spend will dramatically raise your chances of success. Here are some common pitfalls I've seen that each aspiring entrepreneur should avoid: 🛫 Flying above Economy: economy seats get you to the same place as business class. 🤝 Relying on recruiters: build and use your network to find talent; don't pay for it. ❌ Overusing agencies and consultants: don't become dependent because their short ternure means institutional knowledge will vanish. 💸 Expensive company swag: If it’s more than a few dollars, it's too probably too expensive. 🚗 Luxury cars: investment should stay in the venture, not a over-priced, depreciating assets. 🎉 Extravagant launch parties: splashy and memorable <> wallet-emptying. 🏨 High end hotels: 3- and 4-stars can still be comfortable. I challenge every founder to prioritize financial discipline. Tight budgets = longer runway!

Earlier in my career as an entrepreneur, I placed a lot of value on passion and conviction. I believed these two attributes could help me surmount any hurdle my startup faced, and I routinely sought out investors who agreed. Now, I’ve changed my tune based on experience. I now prioritize clarity. Clarity isn’t always having the answer or knowing what to do. Clarity can sometimes be certainty in what to do next, which option to take, which path to follow, but clarity can also be not knowing anything at all and staying curious. When I meet an investor who wants to talk with me about questions and believes in my ability to figure it out, that means far more to me than someone who thinks they already figured it out before they even allowed my business to reach the point where that would be of consequence. Clarity and curiosity won’t help you see around anymore corners than passion and conviction, but I do believe they will help you prepare for them and not overreact (or be slow to react) when they appear.

Founders facing an exit face have way more questions than we have answers. For most entrepreneurs, the chance to sell their company will only come once or possibly twice in a lifetime. It’s a lifechanging event – and you don’t have the opportunity to get better at it with practice. You need to get it right, the first time. Given that context, it is shocking how little we know about drives a successful exit. Founders’ motivations for exiting are complex – money is part of it, but most often so are questions of legacy and ongoing success of the team. These additional considerations are rarely discussed in what literature exists. Nor is the question of what drives life satisfaction for the founder post-exit. What characteristics of the deal, or the acquirer, or the process lead to positive results? We don’t know. And that’s a failure: > A failure of the community of M&A consultants to understand the broader impact of their actions. > A failure of the academic community to answer the kinds of questions that make a difference in the real world. Our economy depends on “irrational actors” taking the risk to start companies. Founders create jobs, jobs create communities. Those taking the risks deserve to better understand how best to reap the harvest.  We know almost nothing about what drives a successful exit for a founder. Founders deserve better. #entrepreneurship #exitstrategies