Chris Arsenault

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• What is the best way to approach a potential investor?

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    Build a relationship ahead of time. Not so different than how to approach your potential spouse!

• How can I craft a killer pitch?

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    Have a killer product!

• How can I forecast growth if I'm pre-launch?

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    Talk to potential customers. Gather data. Validate the pain, the value, the opportunity. Understand your cost structure while focusing on the “why” customers need your product.

• For enterprise startups, is it more important to get the volume of clients using your product or to get the revenues in immediately?

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    Depends on the business model you have. Depends on the level of competition, size of market, reach and cost associated to such reach. Either can be good. Validate, test, try, gather customer feedback. If its a new offering that requires preaching to the masses, then reach is more strategic. If your product is of high value, the pain point is so deep that customers are hurting and are in need of your product, than the revenue growth route should be priority number 1.

• Does media attention and lots of buzz help get investors?

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    It helps prove that you are visible, that people are paying attention. But has nothing to do with the fundamentals of your business.

• I have an idea for a product and would like to find an investor. I currently have a graphic designed 3D prototype with all the specs. My quesiton is, should i make a physical prototype to figure out cost of production before approaching an investor?

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    Validation and prototyping is key in understanding the potential, cost, value. The more information you have about your product, cost, market, business model, customers etc… the better your meeting with any investor will go.

• How does a website generate profit it it's content based?

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    By delivering value people are ready to pay for! Ad driven, subscription driven, à la carte, in-Ads, publication rights, there isn’t any “right” model, i think it’s important to understand what people are use to doing, how you can be the less disruptive in terms of payment/model and evolve with trial and error. Look at who is doing.

• Chris - I'm new to the VC world - to begin, what is the ROI and other features an angel is looking for before investing?

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    The beauty with Angel Investing is that that most Angels do deals for very different reasons. The more structured Angel investors will look for returns that fit the risk level they are taking and the total amount of expected capital that will be required to go into the Company. Not far from what a VC would look for. 2x for little risk, 5x for high risk, 10x for really high risk and early early stage.

• Do I have to offer both, equity and money return, to a potentail investor. What's the standard with this? Are investors happy with just the equity or they also want their money back that they invested initially?

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    Depends if you are speaking to a Venture Debt firm, a Venture Capital firm or a Private Equity/Buyout firm. Each have a different model. You need to target who you are raising money from and why. Like the work I used to do when identifying customers or partners, I recommend doing it when looking for the right financing partner. Do homework, assess,understand, connect and build the relationship. The Founding Entrepreneur is the one person that undersand the most what his company truly needs, homework is required to then find it.