Pitching to investors · Lesson 6
Handling investor objections and terms
Expect hard questions, answer briefly, and understand terms before you negotiate.
Common investor objections: 'The market is too small', 'Why can't a bigger company do this?', 'Your team lacks experience in X', 'Why do you need this much?'. Prepare a short, evidence-based answer to each. Acknowledge the concern, answer it, and move on. Long defensive answers sound unsure.
Know your 'use of funds': how much you need, what it pays for, and which milestones it reaches. Raising enough for 18–24 months of runway, with clear milestones, is a common target.
On terms, valuation is only one part. Also understand dilution (how much ownership you give away), board seats, liquidation preference (who is paid first if you sell), and vesting. Get advice from an experienced lawyer before signing a term sheet. Compare offers on total terms, not just the headline valuation, and choose investors whose support you actually want.
Example — Hypothetical: answering 'why so much?'
'We are raising ₦200m for 20 months. ₦90m funds four delivery hires, ₦60m builds the client platform, ₦50m covers sales and reserves. It takes us to ₦60m monthly revenue and break-even.' Clear, specific, finished.
Try this
Write the five hardest questions an investor could ask you. Answer each in under 40 words.
Reflect
Beyond money, what do you want from an investor — and what would make you say no to one?