Before the fundraise, startups should spend time with the investor first. It’s less about the amount of face time and more about the number of interactions over the phone, via email, in person, and otherwise.
It’s best to connect with investors before you start your fundraise so you have a basic relationship established.
You can use the approach “I’m not raising funding now, but I will be in six months” to open the dialog. Then, spend the next few months getting to know them and updating them on you and your deal.
Investors are interested in knowing about not just the product you are building, but also the team you will assemble. With most VCs, their diligence process focuses heavily on the team. So, you want to use your time showcasing what great things they can do.
The more that investors see you making good decisions in this phase, the faster your fundraise will go in the next one.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
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Copyright (c) 2020, Hall Martin and investorconnect.org. All rights reserved.
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.