Camila Farani and Bruno Santana share recommendations based on their personal experiences to help you, the entrepreneur, who is looking to attract investors.

In the month of September, the following took place: Talk with InvestorsThe event featured Camila Farani from Shark Tank Brazil, Bruno Santana, director of Aqua Capital, and Marcel Martins, founder and leader of TM3 Capital, in a conversation with Moacir Vieira, founder of Grupo Value, about how to attract investors.

During the conversation, which aimed to assess the opportunities and risks of the current moment, Camila and Bruno advised and guided partners seeking investors based on their personal experiences. 

If you're an entrepreneur looking for the best guidance on attracting investors from Brazil's leading experts, just keep reading!

How to attract investors: Camila Farani

Shark Tank Brazil is not an angel investment program, but rather aims to attract investors in general. Furthermore, it's a TV show where companies from all sectors participate, not necessarily those from the new economy. In the interview, Camila Farani discusses the key factor that leads her to invest in a particular business/startup.

Having come from the real economy market 20 years ago and having focused on startups for the last 10 years, Camila claims to have an eye for all types of companies. But, ultimately, what is the differentiating factor that makes her invest in something? Is it enough to apply to the program and prepare a nice pitch, or does it have to go further? And then the businesswoman explains her "Ts" thesis, which consists of: team, tech, trenches, and market size.

• TeamThe level of complementarity within the team. Who are the people; have they failed before; have they had experience in the "real world"; if not, how do they behave; and what is the team management, recruitment, and selection process like?

• TechThe product's technology aspect. How it was priced, what its features are, what algorithms it uses, and what is its level of depth and defensibility?

• TrenchesThe trenches. How defensible this product is against new market entrants, and how the entrepreneur behaves under pressure.

• Market sizeAnalysis: This involves comparing the available market size with the actual share the person wants, as well as the likelihood of an exit strategy.

These are the broadest criteria when attracting investors, but there are also more intrinsic aspects, such as minimum revenue. The recommendation is: for startups or innovative businesses that are newer than traditional businesses, it's important to look inward, bring the entire team together, and understand that continuous growth is necessary.

It's about eliminating existing conservative thinking and understanding where the audience's focus lies. Follow the moneyDigital transformation can be one of the solutions, because even before the Coronavirus, companies were already digital, and now more than ever.

Is surfing a wave worth it?

As mentioned earlier, digital transformation he can It might be one of the solutions for your company, but that's not always the case. Camila doesn't recommend following a fad – a hype– without any prior planning, just to take advantage of the current trend.

Launching a product/service or investing in the digital realm just to "ride a wave" is risky, since that wave will eventually recede. The businesswoman advises investing only in products/services that were already in the strategic plan and were accelerated by the pandemic.

He even gives a personal example: An educational institution that was 50% online and 50% in person took advantage of the moment to migrate completely to the digital environment.

How to attract investors: Bruno Santana

The director of Aqua Capital discusses a common question entrepreneurs face when seeking to attract investors: When is the best time to bring in an investor? Is it during difficult times, when the need is high, but valuation won't have a real impact? Or is it when the company is at its peak, with growing revenue?

Bruno talks about the entrepreneur's vision, and says that at Aqua Capital they invest in companies that are at a more mature stage, already generating cash and possessing a certain level of revenue. Based on the analysis of hundreds of cases annually, it's possible to state two things:

•  Those who are in a good company, with a good outlook and business plans for the future, either have no interest in talking, or set an unrealistic value;
• For those interested in doing business and wanting to accelerate: this is a company that "doesn't make sense," doesn't have a long lifespan, and doesn't have great future ambitions.

When does the investment take place?

For Aqua Capital, which primarily invests by acquiring stakes, the best time to invest is when the founding partner recognizes the extreme importance of the business. The famous skin in the game, where the business represents a significant part of personal assets and there is a desire for growth by attracting investors.

There's no doubt that the ideal time is when this founding partner is already showing growth and an adequate profit margin. He not only has stories to tell, but he's also able to do the famous... track record and also demonstrate that what you say you will do, you will deliver.

Bruno further adds the loss of interest that occurs when noticing a state of plateau After significant growth, there is no longer a desire to invest if there is no further growth. Therefore, this growth should already be evident, but it should still be possible to increase it through investment.

Talk with investors

No Talk with Investors made by Crisis ManagementThe country's major investors are assessing the opportunities and risks of the current moment.

The recording of the conversation with Camila Farani from Shark Tank; Bruno Santana from Aqua Capital; Marcel Martins from TM3 Capital; and Moacir Vieira from Grupo Value is now available and you can access it. clicking here.

The Value Group is one of the companies that maintains the Crisis Management portal, a non-profit initiative aimed at sharing content to help you understand the new reality in the business world and make the decisions you need. You can check out the various content available on the website by clicking [here]. here.