1) Be realistic with your valuation. Your valuation is not the opportunity because of market size or the potential you think your company has. Part of the valuation is what your business is worth today. This is calculated based on your sales-to-date, asset value, and market value.
2) Show off what sets you apart. When signing deals, I often invest in the entrepreneur more than the idea. An entrepreneur with passion, ambition and tenacity can make the most unexpected business idea successful. What are you putting into your business that no one else can duplicate?
3) Prioritize listening. The secret to Club Penguin’s success wasn’t our technical ability or business acumen, it was simply our ability to listen and respond. Respond with content and the changes your customers want to see.
4) Let your numbers tell the story. Highlight what’s working and be honest with what isn’t. No business is perfect, but with all the information we can evaluate your business objectively and succeed together.
5) Know what you want in an investor. Each Dragon on the panel brings a unique combination of experience and strengths. Go in with an idea of what areas your business needs support in and the set of investor skills that will be the best fit.