On Friday, July 31st I presented this Slideshare to more than 50 entrepreneurs who are part of the latest OnDeck Fellowship cohort. We walked through how to run a fundraising process and how I run my own investment process as an angel investor.

1. Running an
Investment Process
July 2020

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Steve Schlafman
Coach & Advisor at High Output, Angel Investor
"My mission is to help founders bring their
wildest visions to life and evolve into
extraordinary leaders."
Running an Investment Process2
Operator Investor Coach

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The Founder’s Side
Running an Investment Process3

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End-to-End Fundraise Process
Take Aways:
Running an Investment Process4
5
Close
4
Manage
3
Meet
2
Outreach
1
Research
• Create FOMO (your #1 job!)
• Continuously evolve pitch materials
• Don’t forget self-care!
• Choose your investors wisely
• Treat it like a sales funnel
• Expect process to take 1-6+ months
• Always know what stage you’re at
• Maintain momentum at all times

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Research
Running an Investment Process5
Sources
• Crunchbase
• CB Insights
• Twitter
• VC Websites
• AngelList
• Midas List
• Forbes 30 U 30
Tips
• Do your homework
• Look at VC portfolios (themes, COIs)
• Seek investors with sector expertise
• Identify investors in your geo
• Note early-stage vs multi-stage

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Investor Outreach
Running an Investment Process6
Types
• Cold Email
• Twitter DMs
• Warm intros
• Matching tools
• Networks + communities
• "Practice" pitches
Tips
• Make sure they’re relevant + a fit
• Get intros from founders / operators
• Track in Sheets / Airtable / Notion
• Monitor each stage in funnel
• Personalize your communications
• Don’t be lazy!
• Follow up in a timely manner

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Cold Email Template
highoutput.co/library
Running an Investment Process7

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Meet
Running an Investment Process8
Types
• Zoom Pitch
• Phone Call
• "Socially Distanced Walk"
• Loom pitch
Tips
• Be on time
• Know your medium and audience
• Don’t read from your slides
• Balance depth and vision
• Every interaction is a data point
• Note common questions/traps
• Leave with clear next steps

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Manage & Close
Running an Investment Process9
Activities
• Share diligence requests
• Schedule follow-up meetings
• Gauge investor interest
• Secure a lead
• Manage offers & term sheets
• Balance allocations
Tips
• Devote & invest the time
• Follow up in a timely manner
• Evolve your slides & materials
• Create FAQ as appendix
• Get a term sheet, more will follow
• Backchannel investors
• Start with lead, fill round strategically
• Be patient— process can take time

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The Investor’s Side
Running an Investment Process10

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End-to-End Investment Process
Take Aways:
Running an Investment Process11
5
Decide
4
DD
3
Meet
2
Screen
1
Lead
• Make decisions on Monday
• Spend at least 2-4 hours with team
• Focus more on team, opportunity
• Seek input from operators/investors
• Output = quality investment decisions
• Execute process over 2-4 weeks
• Collect data at each interaction
• Source matters

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Memo Screen 1
Running an Investment Process13

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Memo Screen 2
Running an Investment Process14

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Memo Screen 3
Running an Investment Process15

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Q&A Session
Thanks for listening!
Appendix to follow
Running an Investment Process16

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Sourcing
Running an Investment Process17
Sources
• Other Angels
• Seed Funds
• Multi-Stage
• Founders
• Operators
• Cold (Email, Twitter)
• Programs / Accelerators
Key Questions
• Is it worth screening?
• Do I need an intro?
• Is this a priority?

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Screen
Running an Investment Process18
Key Activities
• Request deck + product
• Review deck + materials, memo
• Decide to take first meeting
• Ask for more info if unsure
• Get input
Key Questions
• Who is the source?
• Is the team credible + capable?
• Is the company raising < $3M?
• Is there a product or demo?
• Is there any traction?
• What’s size/scope of market?
• Am I excited to dig in and spend
time?
• Do I care?

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Meet
Running an Investment Process19
Key Activities
• Send fund overview
• Kick off w/ intros & objectives
• Log notes in Notion template
• Identify risks & next steps
Key Questions
• Why this idea?
• Why this team?
• Why now?
• What’s the product?
• Who’s the initial user?
• What’s the market size / scope?
• What has been learned?
• What is the wedge / roadmap?
• What are funding plans / milestones?

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Evaluate
Running an Investment Process20
Key Activities
• Reference founders
• Research investors
• Schedule second meeting / pass
• Get back to founder quickly
Key Questions
• Are the founders extraordinary?
• Do they deeply understand market?
• Who are the key competitors?
• What’s the early advantage?
• How does the company leverage
tech?
• What is unique, what’s borrowed?
• What are points of friction, risks?
• Can they grow without paid acq.?

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Investing in Leaders
Running an Investment Process21
Traits
• Technical / product focused
• Customer centric
• Insatiable curiosity
• Demonstrated grit / tenacity
• Self-awareness
• Unwavering belief
• Mission-orientated
Key Questions
• Can they ship + build?
• Do they deeply understand
customer?
• Do they love to experiment / learn?
• Have they overcome adversity?
• Do they know themselves?
• Do they deeply believe?
• Are they on a mission?