Investor Renegotiations

8. Will I receive support navigating investor renegotiations — down rounds, partial exits, or changing the business model narrative?

The 1Mby1M program provides support for navigating investor renegotiations, including down rounds and changing your business model narrative.

Here’s a breakdown of the guidance you can expect:

• Mentorship on Investor Relations: The program is founded on the principle of building businesses in a “bootstrapped, capital-efficient” way, which gives founders more leverage and control. This foundational philosophy informs all of its advice on dealing with investors. Sramana Mitra is known for her direct and candid advice, and testimonials highlight her as a trusted advisor for strategic decisions.
• Changing the Business Model Narrative: The program provides “strategic advice to help you think differently” and “cut through the fog with laser precision by asking the right questions.” This is crucial for pivoting your business model. You would be guided on how to create a credible story for investors, particularly if you’re shifting from a “growth-at-all-costs” model to a profit-first approach.
• Exit Strategies: The program’s methodology includes a focus on exit strategies, which is a key part of the conversation with investors. While it advocates for building businesses that can be successful without an exit, it also provides guidance on how to make a company a more attractive target for acquisition, which is a form of exit. This also provides context for navigating partial exits or other liquidity events.

In short, the program’s mentorship and curriculum are well-suited to help you navigate these complex and difficult conversations with investors by providing a strategic framework, real-world context, and a focus on building a fundamentally sound business.