I'm a VC With Over 50 Startup Investments. Here Are the 4 Secrets to Securing Funding for Your Ventures.

A coagulated network of investors is indispensable for immoderate entrepreneur. These connections tin unfastened doors and constitute checks for you erstwhile you request them nan most. If you get it right, investors mightiness moreover proceed to backmost you acold beyond your existent venture. However, mastering investor relations is simply a analyzable process.

Sure, there's investigation that covers basics specified arsenic making a bully first impression, nailing your pitch and ensuring investors are nan right fit. Yet location are besides immoderate hard-learned tips that you will only perceive from an insider.

Based connected my acquisition arsenic a laminitis who's generated a 200x return for my first investors, and successful my existent domiciled arsenic a task capitalist pinch 50+ startup investments — I've learned rather a fewer actionable tips on nan way.

Related: 5 Tips for Navigating nan Entrepreneur/Investor Relationship

1. Reach retired to investors acold earlier you're ready

Avoid nan emblematic rushed process of pitching investors you've ne'er met earlier connected a tight timeline. This creates a transactional emotion and gives investors an easy excuse to pass.

You should purpose to prosecute investors connected an emotional level, wherever they are near emotion for illustration they've known you personally from nan start. To execute this, you should scope retired to imaginable investors earlier than accepted proposal suggests, moreover if your thought feels unpolished. Be judge to pass that you aren't fundraising, but seeking to build a narration up of a imaginable financing.

It whitethorn return clip to get meetings scheduled arsenic location is nary urgency. However, if you enactment persistent successful pursuing up, you'll get nan opportunity to yet meet and person a genuine speech alternatively than a high-pressure pitch.

Try to make 2 caller connections for illustration this per month. Over time, this will turn into a ample web you tin pat into erstwhile you yet request nan cash. When that clip comes, it won't consciousness for illustration a rushed process either and nan likelihood will beryllium much favorable.

During my clip arsenic Founder of Vungle, I implemented this strategy complete respective backing rounds. On 1 occasion, I had 7 competing word sheets for our $17 cardinal Series B financing, and it only took immoderate matter messages to get nan first offer.

Related: 4 Expert Tips connected How to Network to Find Investors for Your New Business

2. Don't stock bully news until it's 100% confirmed

When gathering investors, beryllium mindful to only stock numbers you're assured you will beat. You should under-promise — and over-deliver.

You'll often find that immoderate investors person an uncanny expertise to callback each item from anterior meetings. Know that investors return notes aliases upload their thoughts into their customer narration guidance (CRM) aft each meeting.

When I meet entrepreneurs connected behalf of my task superior money astatine Blue Field Capital, I person a log of each awesome truth a laminitis has ever shared pinch me. I occasionally brushwood a laminitis who hypes up their business only to disappoint down nan line. If I announcement a repeated shape of this behavior, it tin break my spot successful nan laminitis and I'll beryllium little apt to invest. This is precisely what you want to avoid.

It's amended to only stock affirmative news erstwhile it's confirmed. Don't group yourself up for a business wherever you're pressed to warrant what didn't materialize, for illustration a large customer you didn't adjacent aliases revenues that only grew 50% alternatively of 75% (when ordinarily 50% is awesome growth).

Another tip: Be upfront astir nan challenges you're facing and activity proposal from investors. Later, constituent to really their proposal helped flooded obstacles. This attack increases nan affectional attachment and creates trust.

3. Make caller investors raise money for you

Once you person confirmed investors successful a backing round, inquire for introductions to astatine slightest 3 co-investors they recommend. A connection of warning: Ensure you person a clear verbal aliases written committedness earlier seeking introductions. Otherwise, you consequence imaginable investors talking themselves retired of investing arsenic it only takes 1 skeptical investor to person nan others.

Instead, you want a beardown reference who will champion your deal. Investors will spot nan opportunity arsenic de-risked erstwhile different investor they respect has already done nan owed diligence and is 100% committed.

I witnessed this first-hand erstwhile I came to Silicon Valley arsenic an migrant pinch virtually zero connections successful nan U.S. I raised a $2 cardinal seed information from 30 different investors, chiefly by piggybacking connected that first investor committedness and introductions.

Related: 7 Ways to Maximize Mentor Relationships successful Business

4. Hold up your extremity of nan investment

Unfortunately, immoderate investors acquisition power soundlessness aft investing successful a company. While they want to springiness founders abstraction to execute, they besides request updates for their ain investors (yes, VCs person their investors too, known arsenic LPs).

If you see that your investors request to update their LPs each quarter, you should admit nan value of sending your investor updates astatine slightest erstwhile per quarter, if not monthly. Please don't shade your investors!

You should ever supply a general written update sloppy of whether you're besides delivering news successful personification aliases virtually. Always commencement each update pinch cardinal metrics for illustration revenue, rate equilibrium and rate runway. Ideally, this is presented successful an businesslike format specified arsenic a array aliases graphs.

Don't make investors labour done a agelong update without addressing header items first. Otherwise, you consequence losing their attraction arsenic they'll skim done your position for this accusation regardless.

Related: What Does nan Venture Capital Due Diligence Process Look Like? Here Is Your Step-by-Step Guide.

When you make life easy for your investors, they'll admit nan measurement you run and will apt want to proceed moving pinch you. That's really "repeat founders" aliases "serial entrepreneurs" skillfully raise ample amounts for their adjacent venture, often sloppy of really their past institution performed.

Investors make decisions connected an affectional level and by pursuing these insider tips, you tin build spot and negociate investor relations for illustration a pro.