"What Investors Want Is Transparency"

As part of Uruguay XXI’s efforts to promote foreign investment, the agency organized the webinar “How to Get Investors Interested in Your Company?” to strengthen the presentation and positioning capabilities of the projects in its Investment Project Portfolio. The session was led by Matthew Smith, an entrepreneur and investor with more than 20 companies founded, and the current president of Royalty Exchange.

The event aimed to provide practical tools for improving communication with potential investors and to highlight the importance of transparency when presenting key business information. “As an entrepreneur, your business is like your baby: you care about it in a way that an investor will never care about it. That’s why it’s essential to present a certain amount of transparency from the outset to capture their interest,” Smith said.

A straightforward guide based on experience

The panelist emphasized that what investors need above all is clear, concrete, and sufficient information.
“What investors want, more than anything else, is transparency at all levels,” Smith said during the webinar. Unlike entrepreneurs—who often attach emotional or symbolic value to their company’s valuation—investors see that number as meaningless unless it is backed by hard data.

That’s why Smith insisted it is more valuable to present simple, clear metrics such as revenue from the last 12 months, whether the company is profitable, and its recent growth rate. This information helps investors assess the size, trajectory, and real potential of the business.

Other key elements to include in investment profiles are the year the company was founded and the number of employees. “The truth is that the longer a business has been around, the more likely it is to be successful. (...) I generally invest in companies in seed rounds, but I’ve also invested in companies that have been operating for 20 years. The risk is lower, and so is the reward,” he explained, adding: “You don’t need to have a large team; many companies are highly effective with just a few people.”

Above all, Smith emphasized the importance of clarity around the investment opportunity itself: how much capital is being sought, what percentage of equity is being offered, and what the funds will be used for. “The more specific you are in coming up with that number, the better,” he recommended. “When there is no clear indication of how the money will be used, investors hesitate,” he warned.

“Don’t be afraid to show the reality of the business. (...) A modest income doesn’t scare investors away—what does scare them away is a lack of information,” he stressed.

Building trust and long-term partnerships

Recognizing the Uruguayan context, Smith noted that he understands the hesitation to share business details in a country where “everyone knows each other.” However, he explained that the Uruguay XXI platform has built-in filters and procedures to ensure confidentiality, and he encouraged participants to trust the system. “Don’t be afraid to share with the right people. If I don’t see key information, I don’t return. But if I see it and I’m interested, I invest. It’s that simple,” he said.

Finally, Smith highlighted the importance of maintaining a transparent and ongoing relationship with investors once the investment has been made. “Money is useful, but a good partner is invaluable. Sharing quarterly reports, talking about challenges, showing progress—this kind of communication builds trust and opens new doors,” he explained. According to the expert, investors can offer much more than just capital: they can contribute ideas, networks, and unexpected solutions.

The webinar concluded with an invitation to use the Uruguay XXI platform as a key tool to strengthen connections between entrepreneurs and investors. In addition to offering value to applicants in the Investment Project Portfolio, the event also served to gather specific input for improving the registration process: many of Smith’s recommendations will be incorporated in the upcoming redesign of the submission forms.

Looking to connect with international investors? Register your project in the Uruguay XXI Investment Project Portfolio here.