Hot Seat

Chapter 9. Don’t Ask for Introductions

Raising money is hard. Regardless of whether you’re targeting angels or VCs, though, there’s no way to screw it up faster than going around asking, “Hey, could you introduce me to some investors?” It’s sort of like going to a party and asking someone to introduce you to a person you could date.

Reason 1: Not Every Investor Is the Right Investor for You

Asking for introductions to “investors” marks you as someone who doesn’t really know what he’s doing. An investor/company match is very specific, and if you want to find your fit, you’re going to have to figure out what you’re looking for.

Most investors specialize in certain fields. Some will invest in early-stage companies, some later. Some will invest in entrepreneurs they’ve just met; some will only invest in people they’ve known for years. Some require a track record and gray hair; some like betting on smart people straight out of college. Some invest big; some small. Many average one investment per year; some do hundreds.

Furthermore, investor styles differ. Some give you tons of room to maneuver; some like to work closely with you. Some offer constant help and advice; others are just about the cash. Some will want regular updates; others don’t like to be bothered.

Before you start looking for investors, figure out what kind of investors you want, and what kind of investors will want you.

Reason 2: It’s Lazy and Rude

Let’s say you have a contact—someone you know reasonably well—who ...