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Right - I think that's actually the most valuable lesson in your post. Start making friends a year or more before you raise. There may be a small caveat - it's
by mmaunder 16y ago
Right - I think that's actually the most valuable lesson in your post. Start making friends a year or more before you raise.
There may be a small caveat - it's worth debating this because I'm not sure I'm right but I'll throw it out anyway: Some investors like a fresh face with a fresh idea. If you become a groupie and hang out at every single event for a year before you raise, you may be less attractive to investors than a fresh face with the same traction and idea. Not sure if this is true but just a thought.
- jmintz 16y agoI partially agree with your caveat. In our case we went to almost zero events, all of our meetings were face-to-face with a single firm. After that we stayed in touch and gave updates on our progress. This also let them get comfortable with our ability to work together and execute on a product. We were also able to show more and more traction over time. Investors will get tired of you if you are raising money for a long time. Once you decide you are raising, get all your meetings done as quick as possible, hopefully in only a couple of weeks. It may not need to be a year. We started these discussions in June and started raising in September. They key is just before you need money.