On Thursday, April 24, Christina Westerweld Haug will come to Aggrator to lead the ESSE masterclass «Finance your business», with the theme of angel investments.
Ahead of the masterclass, we have had a chat with her to gain insight into how entrepreneurs can best prepare for investor meetings, what criteria investors look for, and how to ensure that investors add value beyond capital.
How can entrepreneurs prepare for investor meetings to maximize their chances of funding?
– Entrepreneurs should prepare thoroughly by having a clear and convincing business plan, including a detailed description of the product or service, market potential, and a solid financial plan. The financial plan must show ambition, but not be completely unrealistic.
– It is also important to be able to point to concrete results and milestones that have already been achieved. Actual sales, collaborations with market players, or positive statements from professionals in the field or industry.
– The team is also of essential importance. Show dedication, experience, and expertise the team possesses.
– Some investors want to see if the team is receptive to input. Listen to the investors, read the atmosphere in the meeting, and be receptive to input.
What should Entrepreneure focus on in order to stand out in an increasingly competitive market?
To stand out, entrepreneurs should focus on presenting a unique value proposition, demonstrating a deep understanding of the market and competitors, and showing how their solution solves a significant problem in an innovative way.
– There should be a clear connection between the founders’ expertise/experience and the problem they are seeking to solve.
Many entrepreneurs find it difficult to assess how much ownership they should relinquish in the early stages. Do you have any advice on how they can balance their capital needs with long-term control over the company?
– This is a difficult question.
– Founders should generally retain more than 50% ownership of the product once it is on the market and has shown market acceptance, but this can be difficult. It is important to have a conscious relationship to ownership share, price development per share, and the development of the company’s total value.
– Too low a company price early leads to high evaporation, while too high a price risks
The price per share must be lowered at some point. Keep an eye on similar companies and
their price development. Be clear about your price expectations, but not too greedy. Steady
development has high value.
– Ideally, the price per share should always increase slightly.
What can entrepreneurs do to ensure that investors add value beyond capital?
– Good contact with the shareholders is important, but often becomes a distraction due to limited time. The best approach is to bring the desired expertise into the boardroom. Board members gain a better understanding of the company and a stake in its development.
– Promises of good investor relations that the company fails to fulfill are negative. Ha
some fixed information points that are adhered to every time, rather than big promises
which fails. Quarterly investor letters and the possibility of a board seat are good measures.
– If you want investors to open doors, ask for help in specific situations. Then it’s easier to deliver on your promises to investors.
How can a startup engage existing investors to increase the chances of a successful next funding round?
– To engage existing investors, entrepreneurs should keep them well informed about the company’s progress and challenges. Regular updates and reports can help build trust and show that the company is on the right track.
– Ask for money for concrete development steps and fulfill what you promise. Good development in
The company is the best motivator for investors.
– Real investors who are familiar with and expect new rounds of issuance, and who have the ability to contribute several times, are essential. Investors do not like being alone in saving the company; it is important to have more investors of this type to spread the wealth.
the burden.
Do you have any key criteria that an early-stage startup must meet in order for you to consider investing?
– Key criteria for investing in an early-stage startup include:
– A unique product or service that solves a perceived problem for which there is a willingness to pay.
– Important in some industries, but not all: Protection of intellectual property, such as patents or exclusive rights.
– A strong and competent team with relevant experience.
– A large and growing market with potential for significant growth.
– The possibility of scaling up and expansion.
– An industry that is growing and has good future prospects
About Christina Westerveld Haug
Christina is an angel investor, a former healthcare technology entrepreneur and board member of the Akershus Technology Fund. She has extensive experience with capital raising, exits and board work in start-up companies. In addition to her own investments, she runs a consulting business, Consulting West, where she assists companies with leadership, strategy and business development.
Would you like to meet and learn more about Christina? Sign up for the ESSE masterclass on 24th April here.