how to get strategic investors to eat from your hands | sean lee
TRANSCRIPT
HOW TO GET STRATEGIC INVESTORS
TO EAT FROM YOUR HANDS
Sean LeeChief Strategy Officer
A LITTLE ABOUT WARGAMING
● Global game developer & publisher
● 150 million registered users
● Free to play MMO
● Games and players on all platforms
STRATEGIC vs FINANCIALINVESTORS
THE DIFFERENCE
STRATEGIC vs FINANCIAL
Operational
Cash, stock or services for equity
Operating business
Can be long
Integration capabilities and synergies
Non-Operational
Cash for equity
Multiple sources
Tends to be limited
Cash generation and earnings growth
Industry position
Deal structure
Money source
Investment horizon
Evaluation
● Depends on what your goal is?● Getting the highest price
○ Strategic investors may pay more depending on synergy
● Structuring for growth○ Strategic investors can position you for accelerated growth
● Cash out and remain for a few years○ Financial investor is most probable as strategics have expertise
WHICH IS RIGHT?
DO YOUR HOMEWORK
● Who are you pitching?
● How do they fit in the organisation?
● What is the investment approval process?
● How have investments been structured?
● What are their previous investments?
KNOW YOUR INVESTOR
● What is the company’s strategy?
● Is there a potential operational fit?
● What other internal teams do you need to win support from?
● What measurable value do you bring?
KNOW THEIR BUSINESS
HOW TO PITCH
● Get attention, open with a brief statement that includes:
○ What the company does and its vision
○ Core USPs and top performance highlights
○ Overview previous investment rounds
○ Structure and purpose of this round
● Keep decks short, structured and easy to understand
● Have a conversation, not a lecture
THE BASICS
● Highlight your talents, strategy and vision
● Demonstrate a deep understanding of your market
● Manage risk, identify areas of exposure and address them
● Be compelling, evidence why this make sense for both parties
PITCH YOUR VALUE
STAY CONNECTED
● Build long term relationships
● Send meaningful and relevant updates
● Understand why it was a ‘no’ and address this in the future
● Ask for referrals and recommendations
STAY CONNECTED
● Identify why a strategic investor is right for you
● Have a deep understanding of their business and strategy
● Make a compelling case for working together
● Pitch with clarity and accuracy
● Nurture long term relationships
IN SUMMARY
