A promising meeting with a potential investor can turn entrepreneurial dreams into business reality. However, the journey from a successful pitch to securing crucial funding is often marred by a common mistake: inadequate follow-up. Many entrepreneurs underestimate the significance of post-meeting interactions and inadvertently jeopardize potential partnerships with their missteps.
Here, 20 Forbes Business Council members unveil common, yet critical mistakes entrepreneurs frequently make after an encouraging meeting with an investor and provide essential guidance on what they should do instead to ensure they don’t miss out on the funding and support they need to thrive.
1. Tone Down Your Eagerness
Appearing too eager is a mistake that can backfire on a potential deal for sure. Follow-up is essential but only when done correctly. Setting yourself apart and remembering to address potential concerns to alleviate indecision are both good policies. – Nancy Meek, The Women 360
2. Follow Up Promptly And Clearly
A common mistake is not following up promptly and clearly. Any delay or ambiguity can signify disinterest or disorganization. Instead, entrepreneurs should follow up within one to two days with a concise and personalized note. It should thank the investor, reiterate key points and outline the next steps. This demonstrates enthusiasm, professionalism and commitment to the potential partnership. – Matthias Walter Eser, ESER Capital Vermögensverwaltung GmbH
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3. Articulate Next Steps And Timelines
One common mistake an entrepreneur might make after an encouraging meeting with a potential investor is failing to clearly articulate next steps and timelines in the follow-up communication. This can lead to confusion, misunderstandings or a loss of momentum in the relationship, potentially causing the opportunity to fall through. – Ari Chazanas, Lotus West Properties
4. Craft A Strategic Email
One mistake an entrepreneur might make after a promising meeting with a potential investor is not following up with a personalized and strategic email. By conducting further research on the investor’s interests and concerns, the entrepreneur can craft a compelling follow-up that addresses specific points discussed during the meeting and showcases dedication to and alignment with the investor’s goals. – Udo Okonjo, Ignite Africa/ ACE BUSINESS CLUB
5. Take Some Initiative
After a promising meeting with a potential investor, please don’t assume they’ll take the next step. Take the initiative and follow up within 24 to 48 hours to express gratitude, reiterate key points and seek their insights. This demonstrates professionalism and dedication, improving your chances of securing the investment you need to level up your business. – Michael Shribman, APS Global Partners Inc.
6. Give Yourself Time To Think
Moving too quickly can be a mistake. Give yourself 24 hours to think it over because once you move forward with an investor or a term sheet, it’s hard to stop the momentum. Accelerate when you know you’re ready to commit. The only way to know is to seek as much knowledge as possible. – Adam Rumanek, Aux Mode
7. Avoid Waiting On The Investor To Reach Out
A common mistake is waiting for the investor to reach out after the meeting. Instead, entrepreneurs should follow up promptly, thanking the investor for their time and summarizing key points discussed. Showing enthusiasm and a well-thought-out plan reinforces your commitment to the opportunity. – Emily Reynolds Bergh, R Public Relations Firm
8. Send A Note
Some entrepreneurs fail to send a note affirming that the meeting went well and that they look forward to a follow-up meeting. Consider sending a handwritten note that expresses your gratitude and states that you welcome any follow-up questions. – Daniel Astin, Ciardi Ciardi & Astin
9. Focus On Harnessing Their Interest And Excitement
Acquiring investor interest is akin to maintaining a “health bar” in a video game. It’s about sparking their excitement instantly and keeping that flame burning until they are ready to invest. The key is to generate this initial interest, harness it effectively and then convert it into a committed decision before the “health bar” depletes. This is where FOMO or the fear of missing out can help. – Denys Grabchak, Performetry
10. Avoid Being Overly Aggressive
A common mistake after meeting a potential investor is being overly aggressive in follow-up communications. Instead, send a prompt, personalized thank-you note that reiterates key points and outlines the next steps. This shows commitment without overwhelming the investor, building trust and keeping the momentum going. – Pedro Barboglio, Remote Team Solutions
11. Create A Sense Of Urgency
One mistake is not creating a sense of urgency or fear of missing out. Instead, entrepreneurs should follow up with a clear and time-sensitive action plan, emphasizing the unique value of the investment opportunity. By instilling a sense of urgency, the investor is more likely to take prompt and decisive action, increasing the chances of a successful partnership. – Neena Pandey, The String Code and Indie Roots
12. Remain Transparent And Open
There is no standard practice for this, as it’s hard to find a balance between overcommunication and not communicating enough. It’s also not easy to find a balance between saying yes to everything and not accepting anything. In my opinion, the process will differ from investor to investor, so maintain or follow what is commonly done. Be transparent, honest and open. Avoid trying to convince them by listening and speaking. – Raj Maddula, Global Squirrels
13. Have Conversations Outside Of Raising Money
Entrepreneurs should speak to investors when they aren’t raising money. An intro call is a fantastic way to get on the radar of a VC in a low-pressure scenario. These calls help a founder understand the firm’s interest in the concept without the hassle of a formal pitch. Notice the groups who follow up and show genuine interest, and return to them when it’s time for the next round of funding. – Jordan Peace, Fringe
14. Focus On Not Interpreting Too Much
Do not do too much interpretation of the conversation. Use the investor’s exact words to summarize the discussion and then add three points for how this investment will further extend their brand. – Greg Zlevor, Westwood International
15. Never Assume The Deal Is Secured
Entrepreneurs should avoid assuming the deal is secured and becoming complacent. Instead, promptly send a personalized follow-up email, expressing gratitude, reiterating key points and outlining next steps to keep the momentum and start to build an organic and lasting relationship. – Venus Quates, LaunchTech, LLC
16. Reduce The Amount Of Information Shared
An entrepreneur might flood an investor with information after a meeting, leading to information overload. Instead, a simple, concise follow-up email should be sent. It should recap key points and reaffirm shared goals without being pushy. Regular, respectful contact helps keep the conversation going without overwhelming the potential investor. – Chris Kille, Payment Pilot
17. Always Follow Up Professionally
A mistake entrepreneurs make when approaching investors would be following up unprofessionally or aggressively. I’ve had people meet with me on a Monday morning and begin calling, texting or emailing later the same day. If I ask for more information or let them know I’m not interested, many become defensive. Asking for more information shows interest. Instead of being defensive, help investors understand. – Chris Clear, Clear Storage Group, LLC
18. Show How You Add Value
Always add value! This is a practice that we instill in media relations. When you follow up, forget about making excuses, and create new value and show momentum instead. With investors, it’s about moving forward and reaching positive revenue, so what are the moves you’ve made since your last conversation? How has the industry leaned toward your solution? How will their investment move you closer to success? – Ronjini Joshua, The Silver Telegram
19. Avoid Being Pushy
A common mistake is being overly pushy after a promising meeting. While follow-up is essential, it’s important to respect the investor’s time and process. Instead of overwhelming them with messages, maintain a balanced communication frequency and provide meaningful updates. Be patient and open-minded while understanding that investment decisions take time and may not always result in your favor. – Jeremy Bradley-Silverio Donato, Zama
20. Be Prepared For Scrutiny
After a promising meeting, the investor may proceed with due diligence to thoroughly assess the business. Failing to prepare for this scrutiny can create a negative impression and raise doubts. Therefore, it’s crucial to stay responsive and cooperative with the investor while also maintaining open and transparent communication. Be available for any questions but avoid being overly pushy. – Mark Snell, Polestar Plumbing, Heating & Air Conditioning
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