The market has really bounced all over the place since the pandemic hit. We have all seen this happen during 9/11, then again when the 2008 recession hit. But there are investors who must invest in companies and if you have a strong revenue stream and positive cash flow, you will be attractive to investment-seekers.
One thing that is dramatically different with the pandemic compared to the previous financial crises is the amount of money in the hands of the Private Equity and Venture Capital firms. The total money raised in 2008 was $392 billion as compared to $740 billion raised in 2019.
These firms have slowed down their new investments as they work to analyze and save their current portfolio companies. The money that has been raised must be invested in new portfolio companies in order for these firms to stay in business. The pace will pick up after they have nursed their current portfolio back to health and you need to be ready to pitch to these investment-seeking firms.
Companies with strong revenue streams and positive cash flow will be as attractive to these firms as ever. You don’t want to risk losing a potential investor by sending the wrong message in your executive summary or pitch deck.
From my experience in private equity, where I reviewed hundreds of submissions from companies seeking investors, I know that if your revenue stream is not apparent in a few minutes – the answer will be No. And No will be a full sentence.
If you are a founder or a C-suite executive of a fast-paced, growing entrepreneurial company, are you confident you have the Seven Essential Tools you need to pitch to investors? Let’s make sure – please join me for a free webinar on Thursday, June 11, 2020 at Noon. Click here to join.