The most effective investor meeting I have ever attended was an introductory meeting with a potential investor. It was done in mere 6 minutes.
The sales guy kicked things off with a friendly introduction. Then smoothly transitioned into the pitch, to explain the project’s details.
But just a minute later, the potential investor jumped in, pausing the presentation with something important to say.
“I know you, I know the other investor. I see the rest of you. I believe in this project. Stop pitching.”
The sales guy was shocked, he believed that the deal had already been sealed. Could this mean a success?
The investor proceeded to draw a chart on a piece of paper:
Startup revenue chart by the Author
“I am only interested in two points:
- lowest money point
- break-even pointIf you can answer both, I invest, otherwise we’re done”.
The meeting came to a conclusion. Simple as that.
He then shortly explained:
- In any investment project, there’s a stage where you spend money before you see any results. We call this the “lowest money point,”.
- The break-even point is when the money spent equals the money earned.