Prepare for the Pitch: 3 Ways to Connect with Investors

When fundraising, your mindset is everything. If you go into the process with a growth mindset and a desire to make new connections and see tough conversations as an opportunity for improvement, it will make the whole process so much more enjoyable. There are going to be a lot of NO’s, but if you turn each one of those rejections into a learning moment, you’ll enjoy the process a lot more. Here are three things I always recommend when meeting with potential investors.

1. Remember the investor is a human being. Yes, fundraising is about products and money and financial returns and all of that. But there is also the human factor, too. You're asking this person to join you in a potentially risky (and hopefully successful) long-term relationship. Since this is a human relationship—and not one solely with the investor’s bank account—trust needs to be established first. To do this, spend time learning about the investor ahead of your meeting so you can make a personal connection. I know I greatly appreciate it when a founder starts the meeting by referencing something about me personally. Remember, the investor is a human being, not a human ATM.

2. Focus on the interests of both parties. Experts agree that using empathy is the best way to get to a win-win outcome—and improves the relationship between the participants. To do this, focus on the interests of both parties—the things you are each trying to change or create. What does the investor stand to gain from funding your company? A big payoff, maybe. But what about the factors beyond the specifics of your business plan? Are you bringing them exposure to a new demographic? A new geographic area? Are there other investors already on board that this investor wants to do business with?

3. Encourage feedback. The companies in my portfolio that failed have one common thread and it went back to my initial meetings with the founders: They were quick to dismiss any feedback. You can still be confident, have conviction in your company, run things the way you want, AND also show that you’re coachable. Being responsive and engaging in a conversation around their feedback shows the investor you’re open to ideas.

If you’re interested in going deeper on this topic, Randi Zuckerberg and I recorded a webinar on how to fundraise like a pro. Check it out here!

Need a template to create a pitch deck, click here!