How To Network With Investors

Often times, entrepreneurs need to develop strong relationships with investors in order to be successful in the long run. Having venture capitalists and angel investors as friends can be a great asset for you.

However, many people don’t know how to network with investors so they’re never really able to build these relationships. In this article, I’m going to share my tips on how to network with investors:

Social Networking

Social Media sites such as Twitter, Facebook, LinkedIn, and AngelList can help you find various investors. These sites are great because you get to learn a lot about potential investors to see if they would be a good match for your business.

There is a lot of money out there if you’re willing to be patient and look for it. Many people value investor money very highly, but I’ve realized that you have to be patient and find the right investor. 

Conferences 

Many conferences in different spaces will showcase a variety of different speakers who have many different talents. Attending conferences is a great place to network with industry experts, other business owners, and potential investors.

Quite often, you will find that investors attend these types of events to keep their eyes on new technologies and upcoming entrepreneurs. Just by attending conferences, you can develop relationships with many different investors.

Follow Their Blogs

Another great way to get in touch with an investor is through his/her blog. Many people have personal blogs like mine and share their insight on various topics.

If you find investors that may be a really good fit for what you’re doing, spend a few weeks to follow their blogs and show a genuine interest in what they’re doing. You can break the ice when you email them by sharing something you enjoyed on their blog.

Have Friends Help You

If you have a friend or family member that has a relationship with an investor, you can always ask them to introduce you. Introductions are a great way to get connected with others who can help you.

Ask your friend or family to politely ask their investor friend if they would be interested in what you’re doing and talking to you. If they say yes, you may have a very strong connection to an investor.

Be Human

When you see an investor, don’t look at them like they have dollar signs on top of their head. Be human and make a normal introduction to them like you would to anyone else.

Start off by introducing yourself, ask a little about what they do (even if you know they’re an investor), and who they are. From there, share your own projects and see what they have to say.

That’s it. Most entrepreneurs make the mistake of asking for funding the moment they meet an investor. The key is to build relationships with people and whatever happens from there, happens.

Walk A Mile In Their Shoes

People think making investments is an easy thing to do. However, the investors usually have it the hardest. Recently, I started potentially looking into making investments into various startups and I’ve learned a lot.

From being on both sides of the table, I quickly learned that making investments is extremely difficult because there are so many variables that have to be considered.

Always ask yourself one question: If I was in the investors shoes right now, would I invest in my company for the same deal I am offering him?

If you have to think about your answer to that question for more than a second, you’ve probably got some kind of flaw in your deal. Investors hear thousands of pitches but have to choose just a few.

Be Different

Everyone comes up to an investor and says, “I’m working on XYZ, I’m going to conquer 50% of my market, and here’s a business plan to prove it.” The moment you say this to an investor, they mentally check out.

In order to win an investor over, you have to do something substantially different from everyone else. They receive tons and tons of pitches, why is yours any better than the others?

Investors love results and proof. It’s one thing to say you’re going to do it, but it’s a whole another thing to actually do it. If you can show investors a small sample size or proof, your chances of winning them over just increased dramatically.

Conclusion

Building relationships and finding the right investor is something that takes a long time. While most people want to fund their businesses right away, you want to make sure that both sides are making a wise choice.

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