Ready to finally sit down with a new investor who could be critical to your firm’s asset growth? In a previous post we focused on best practices for investor pitches. Here are the top twelve mistakes that you should seek to avoid:

1. You Don’t Know the Investor

Do you know what your prospective investor’s mandate is, and their current investments, risk parameters, and investment criteria? Rather than giving a generic pitch, do your homework and know what matters to each investor.

2. You Rely Too Much on the Script

You are the presentation, not the script. Don’t let your document drive the meeting. It likely won’t happen anyway. Your investors will ask you questions in the order of what’s important to them.

3. You Focus too Much on You

Put your prospect at the center of attention. Have a dialogue.

4. You Don’t Have an Elevator Pitch

If you have a powerful 30-second elevator pitch, then your prospects are more likely to take the ride with you.

5. You are Fuzzy

How persuasive can you be if your pitch is complex? Make your pitch powerful and easy to understand, with a clear introduction, a crisp discussion of your strategy, and a positive discussion of why you and why now.

6. You’re All Facts, No Interpretation

Facts get forgotten, stories get repeated. What stories will get told about you?

7. You Don’t Know Your Key Messages

Build your story around your main messages. A best practice is to edit, cut, combine, and edit again.

8. You Are Secretive

How do you choose what to invest in and why? What are your risk mitigation techniques? Be honest and open. If you messed up, explain why – and what is different now.

9. You Don’t Ask Questions

….Or leave time for questions to be asked. The first meeting is the just the start. Don’t play hard-to-get; don’t stalk. Identify all the tough questions. And practice your answers. Have you addressed your prospective investor’s concerns, and what really matters to them? 

10. You Give a Half-Hearted Performance

Can you train yourself to be as exciting as your investment strategy?

11. You Don’t Practice

Practice? We’re talking about practice? Yes, we are. Have you rehearsed properly? Do you think you always pitch better without rehearsing? Think a second time. 

12. You Don’t Follow-up

What’s your plan for following up after the meeting? Some investment managers, believe it or not, expect their prospects to call them.  

For more information on how to build a powerful pitch book to raise capital, please get your eBook below.