My main investor is hysterical and wants out. Help!

Dear Aunty B,

I need money for a big marketing push, but my key investor (who is a high profile VC) has announced they don’t want to invest further and want out!

We are four months behind meeting our sales targets but their reaction is hysterical. They are now pushing for a trade sale and we have had a few very bad board meetings.

Fortunately the other investors are backing us and can see that the market just needs to be better educated.

What can I do?

Leon D,
Caulfield

Dear Leon,

Do you know something? Your scenario is not uncommon. And in the many years that I have seen this play out there have always been two outcomes.

One, you could be wrong and the market does not need educating – people are just not interested in buying your products and you will go under (sorry).

Or two, you are dead right. The marketing campaign will work, you will meet your sales projections and it will be French champagne all around. In which case you need to ditch the main investor, go to your other far-sighted investors and convince them to buy short-sighted investor out. This means calling on all your entrepreneurial negotiating powers, remaining calm and putting your case.

This is a time for holding your nerve. If you truly believe in your product and your other investors do too, then see this investor as just another barrier to hurdle!

Your Aunty B