Contributed by Adi Bittan – Owner and Co-Founder of Owner Listens, a platform that empowers businesses to deliver exceptional customer service that meets the increasingly high expectation of modern consumers. 4 Tips on How To Approach Investors
Here are a few tips:
- Leverage relationships. People who trust you are more likely to give you capital and trust isn’t built in a day. Go to investors who have known you for a while and you have rapport with.
- Build relationships. The more relationships you build, the larger your pool of potential first investors. Get started on this early, before you start fundraising. Solicit advice about your idea. Get a feel for the candidate investor’s general reaction. Keep him or her updated on your progress, especially every time you hit a new milestone.
- The first is the hardest. Once you have some capital committed, it’s easier (but not easy) to get other to jump in. It’s what’s called “herd mentality”. If X invested, it must a good idea. Therefore, talk to those most likely to invest first so you can get the first commitment as quickly as possible. It will make subsequent conversations easier.
- When you have to expand the circle beyond people you already know, look for investors who have an interest in the space based on their previous investments (which you may find on Linkedin, AngelList, Google search etc.). Ideally, they’ve made a profit in the space before. Just be aware that they understand the space well, having had the opportunity to see a business in it struggle to make it. They will know all the holes and weaknesses so be prepared (you will also learn a lot from them).