EOS helped raise investment funding

How EOS® Helped One Company Raise Investment Funds — Fast

Mike Kotsis EOS - Entrepreneurial Operating System, Small Business

It’s not easy to get funding from investors. Pitching can be a brutal experience, and each round of funding can be incredibly stressful. When the future health and stability of your business is on the line, every detail counts. Investors don’t part with their money hastily, and only the strongest candidates will come out celebrating. Companies need to make the most of every advantage they can.

I have a client who has been implementing the Entrepreneurial Operating System® for four years. This is a software company that has been funded by investors through multiple rounds of funding over the years. Thanks to EOS®, they recently started hitting their stride at a whole new level and they needed a bigger round of funding to continue their growth.

Here’s a case study how EOS helped one startup raise investment funding. The events that unfolded took the leadership team completely by surprise — but, in hindsight, perhaps they shouldn’t have.

EOS Impresses Investors

My client met with an investor group. The presentation began like a typical investment pitch, and the investors began asking questions. But when someone inquired about the company’s vision and plan, the meeting took on a whole new tone.

The leadership team had their Vision/Traction Organizer™ within reach, so they walked through the V/TO™. The investors were impressed that a company could encapsulate such a clear vision, core values, and future plans on just two sheets of paper. 

Next, they asked, “How do you divide up your roles in the organization? How do you know who’s accountable for what?” They wanted to see an org chart, but my client didn’t have one. Instead, they shared their Accountability Chart. 

The chart created tremendous clarity, because all of the roles and responsibilities were defined for every seat in the organization in a simple, clear, easy-to-understand way. The investors could clearly see how activities were carried out, how things flowed, and what set of eyeballs were needed to get something done. Everybody knew who owned what. 

The investors realized they were looking at a tool that did much more than an org chart could offer, and they couldn’t hide their admiration.

By now the investor group was genuinely interested in learning more about this impressive company. How did they set priorities and make sure they were on track? How did they know if their activities were working?

So my client talked about their weekly Level 10 Meetings™, quarterly Rocks, and Scorecard. They shared their Scorecards. The investors were blown away by this leadership team. Not only did they make sure everyone was on the same page with priorities, they also had an effective meeting format for solving issues as they come up, each and every week. The right people were at the leadership table, discussing and solving the right issues.

Finally, the investors asked how long they had been implementing EOS. When they learned the company had been running strong on EOS for four years, it sealed the deal. The investors knew they had found the company they were looking for and an agreement was inked. The larger round of funding my client needed was found!

Strong Foundations Mean Smart Investments

EOS played a huge role in that meeting. It gave the investors great peace of mind, because they were looking at a company that had vision, planning, and accountability woven into the fabric of the organization itself. EOS is the foundation that my client’s business operates on — it’s not merely tacked on at the end, or cobbled into certain siloed areas of the company. 

My client closed that round of funding in record time. The leadership team was thrilled. It was easier than expected, and they didn’t have to do anything special — they just showed the investors how they live and operate every day. 

The leadership team had never used their EOS Foundational Tools in this way, before — showing investors how they’re actually operating in their business. But from now on, they’re leading with it. The power of EOS to develop a healthy, reliable business is just too obvious for investors to ignore.

Get to the Next Level with EOS

This is the kind of result that companies running on EOS are witnessing all the time. I was delighted to hear their story, but I wasn’t surprised. I would expect most companies that are running on EOS to have great success securing investment funding.

If you’re a startup company, EOS can help get you into a healthy place that attracts investors and gain traction. Let’s talk about how I can work with you.