I’ve been away again so haven’t had a chance to keep on top of what’s going on in the ECF world. One thing that I did notice whilst I was away were a number of emails from Seedrs notifying me of responses to document requests.
As you probably know, Seedrs allows companies who are pitching on the platform to upload a number of documents – usually there’s a pitch deck and possibly some financial projections. Instead giving potential investors automatic access to these documents, each potential investor has to request access, it’s then up to the ‘lead entrepreneur’ whether you get access. The precise reason for this hoop-jumping exercise is unclear – Seedrs do point out that these documents are not vetted by themselves so perhaps this has something to do with it.
Anyway, I like to request access to the documents for most pitches as part of my due diligence. Most companies respond within a couple of hours and at worst a couple of days. However, recently I have noticed a number of responses coming back weeks after initially requesting access. Companies who can’t be bothered to answer in a timely fashion don’t deserve my investment – other investors must be thinking along similar lines as the very same pitches seem to have a tendency to struggle – One I could mention is currently begging investors to invest just a little bit more on the discussion boards so they can limp over the line.
So, for anyone thinking about pitching:
Lesson 1: Respond to all document requests within 24 hours for the duration of the pitch.