It’s our experience, that when an SME is looking for funding, they spend a lot of time thinking about the investor readiness piece and the pitch itself. When in fact, the due-diligence phase post pitch is where a lot of time and efforts are spent. We guide our SME customers through this phase, to give them the best chance of securing the investment and support they need to grow. That’s why we say to our SME’s before they pitch, they are not pitching for investment, they are pitching to go to the next stage. It is at that next stage where our angels really get to understand the business and the investment offering on the table.
Over the past couple of months, all our due-diligence meetings have been online, which in most instances has actually made it more accessible for our angels to attend. With the new social distancing rules being in place, we have even managed to arrange some product demonstrations recently (at a safe distance) where the angels have been able to see the product first hand, and also meet the founders.
All phases of the investment process are important, so if you’re looking for funding make sure you are ready for the due-diligence phase prior to your pitch. Losing momentum along the journey not only costs you time, but could also cost you your investment, as the angels move on to other, more timely opportunities.