You, Him, Her, or Them? Which Investor?

In our last discussion, we deliberated on how to go about choosing the right investor or venture capitalist from the entrepreneur's perspective. We will delve deeper here. 

To get into hot deals, the investor gives founders a reason to pick them over other investors. This so-called “reverse pitch” is the VC’s opportunity to sell a founder on their unique value-add. The “reverse pitch” has become more important as investing has become more competitive. There are more investors than ever before. Founders too are better educated about the fundraising process and what to look for in an investing partner.

While every “reverse pitch” is unique to that investor, here are three main takeaways on what an entrepreneur should be taking care of and how VCs convince founders to take their money:

a) The pitch is relevant, differentiated, and authentic
b) Investors should show than tell founders how they can help and provide support

c) The way an investor makes a founder feel matters a lot, in terms of how well-prepared, responsive, and transparent they are