Are you wondering how to build relationships with investors? Winning at startup fundraising is all about building relationships with investors. How do you do it?
In fact, building relationships with a variety of investors won’t just pave the way to winning in round after round of raising funds, it will open the doors to a great exit and resources, and will make navigating everyday business easier. Especially when it comes to working with your board of directors.
So, how, where and when do you start building powerful relationships with these key players in the industry?
The best path to getting funded, and on the best terms is to start building relationships with investors far before you need them. This is equally true from angel investors and friends to fund your pre-seed round through strategics and private equity funds in a Series D round.
Many have found attending great colleges one of the best ways to build this network early. It is some of the best value they have gained from the university.
At a minimum, you want to be building strategic relationships for at least 12 months in advance. Even earlier than that is better.
So, if you are still brainstorming a startup now, and may not launch or need funding for another year or two, this is the time to begin prioritizing meeting and nurturing connections with angel investors, founders of startup accelerators, and fundraising consultants.
Do What You Say
No matter what it is, do what you say. The number one problem facing investors is finding entrepreneurs they can trust and who will deliver. Not just for being confident in returning their own money, but for protecting their own credibility and relationships if they refer you to others.
So, whether it is meeting up for coffee, sending them an update, or taking the next step in your venture, do what you say. They’ll notice.
Add Value First
Don’t sell. Focus on them. Find a way to offer and give them value long before you have an ask.
This is how you’ll earn their trust and friendship. Just make sure you are doing it authentically.
Focus the conversation on them, and listen. What are they passionate about? What pain are they dealing with? What pleasure do they seek?
How can you add value to their life and business? Don’t give to get. Just give. Even if that feeling of helping someone else is all you get, it is more than worth it.
Get To Know Them
Get to know investors as people and business professionals, over time and in a variety of situations.
Investor-founder relationships are definitely like a marriage. People can be vastly different from casual dating to moving in together and getting married. It can be totally different when you are together every day, up in each others’ business, are going through the daily grind, and so on. There is no way you can grasp this with a couple of dates where both sides are putting on their best front.
See How I Can Help You With Your Fundraising Efforts
- Fundraising Process : get guidance from A to Z.
- Materials : our team creates epic pitch decks and financial models
- Investor Access : connect with the right investors for your business and close them