- Persuade & Raise
- Posts
- ♞ Starting VC Conversations
In partnership with
Starting VC Conversations
I’ve spoken in the past about the importance of having conversations with investors and working to build relationships with them. This can have a great impact on your company in the long term by allowing you to get insights into the industry and have connections that can help you secure funding quickly.
I don’t mention enough that you NEED to start these conversations before you are able/willing/want to raise money. One of the biggest mistakes I see is founders starting these casual conversations while actively raising. The reality is that the optimal way to raise is to approach VCs years before you want to raise (at least months before), build a relationship, and then, when you are raising, be upfront, honest and straightforward with them.
Intercom for Startups
Join Intercom’s Early Stage Program to receive a 90% discount.
Get a direct line to your customers. Try the only complete AI-first customer service solution.
How to start these conversations
The best way to start these types of casual conversations is to:
Provide insights to VCs
Ask for help (not money)
Many VCs are always looking to learn more about industries. It’s their job to know as much as possible so they can make the best investment decisions. If you are able to provide them with interesting information and insights, then you’ll open the door to building a relationship. This is something that can easily be done virtually, if you are trying to get attention from a VC on Twitter/LinkedIn, then this strategy works.
Asking for help is something better done when you meet a VC in person or have a warm intro. The key here is just to ask for something small that allows them to work with you for a short period without making any substantial time/monetary commitment. On your end, you should take this opportunity to showcase how you operate, your team, your skills, etc. As an advisor, I see teams at work; when you treat an investor as an advisor, they will see the same. If they see a well-oiled machine, then when you do open the funding conversation in future, they will already have trust and faith in your/your team’s abilities.
Do you plan your rounds in advance? |
Startup PromoTix ($48M in traction) is saving the events industry
PromoTix, seeking funds to expand, tackles high ticket fees and low event attendance, countering Ticketmaster’s 35-40% fees. With 656k users and $48M in sales in the first 30 months, it offers low/no-fee SaaS pricing and innovative marketing tools.
Are you looking to grow your business? Here is how I can help:
📢 Promote your startup to 2,000+ VCs including investors from a16z, YC, Techstars, Rarebreed, Sequoia and more.
📱 Book a Strategy Call to get 1:1 feedback on your pitch, pitch deck and/or fundraising strategy. (If you need general startup advice, then reply to this email, and I’ll let you know if/how I can help.)
📺 Access FundraiseOS, the ultimate fundraising course with video lessons and practical worksheets helping with everything from deciding how much to raise to understanding a term sheet.
💸 Promote your product or service to 100,000+ entrepreneurs.
🌐 Connect with me on LinkedIn or X (formerly Twitter) to get access to new content about startups, fundraising, venture capital and more every day.
Onwards and Upwards,
|
|
