Love is in the air!

Happy almost Galentine’s Day!

(Or Valentine’s Day if you don’t worship at the altar of Leslie Knope.)

Does love make you think of investors?

Probably not.

Okay, literally, no one ever thought this.

But maybe we should.

Most folks understand, or at least have some experience, with dating and romantic relationships.

Fundraising, on the other hand, is a black box.

What goes on in the head of investors? What are the unwritten rules of venture capital? How do I decode the mystery of fundraising????

Good news! (maybe? depends on your love life 😂) Fundraising is more like dating than you think.

Here are 5 classic dating guidelines that apply to fundraising too!

1. Be cool on the first date.

Everyone knows the drill.

Dress nice, share the normal and successful parts of your life, save your neurotic shit for later.

People understand this when dating.

(Or learn quickly.)

Ditto for fundraising!

The first meeting is best foot forward!

Now is not the time to dwell on your agoraphobia or problematic churn.

That will come up. You may want to proactively bring it up later. After you establish your awesomeness in so many other areas.

Related — and VERY IMPORTANT — never, ever lie.

An innocent white lie on a first date or VC meeting can come back to haunt you. If you need to lie, it wasn’t the right fit anyway.

2. Do it for the right reasons.

The best time to date is when you feel confident and don’t need a partner to be happy.

The best time to raise is when you don’t need the money.

If you are desperate for investment or expect an investor to save you (“if we only had capital, then we would be successful”), you’re fundraising for the wrong reason.

But what if you really do want a partner and/or to raise money?

Always project confidence (even if you don’t feel it), take lots of at-bats, and be willing to walk away.

3. “It’s not you, it’s me.”

Investors have hearts. (Well, most do…😉)

They know your company is your baby and don’t want to hurt feelings or burn bridges.

Who knows? Maybe this company isn’t a billion-dollar unicorn…but your next one is!

This is why investors will give you the nicest, most vague reason possible why they can’t move forward:

• “You’re too early.”

• “You’re too far along.”

• “It’s outside of our thesis.”

• “Timing isn’t right.”

• “We’ve moved away from that market.”

Don’t read too much into it, don’t take it personally. It’s a no. Stay on good terms, move on.

On the flip side, straight from a classic Millennial dating manual and a very mediocre rom-com: If you’re the exception, you will know.

When investors are interested, they follow up quickly, stay in touch, and tell you how great you are.

Of course, if you hear a consistent theme from the “no's”, take note.

• “This market is too small.” → pick a bigger market or tell your story better!

• “You are a loser without a job.” → start a tech company! 😜

4. It’s a marriage not a fling.

If things go well, a founder-investor relationship will last 10+ years!

It’s not a financial transaction, it’s a long term relationship.

Approach the fundraising experience with this mindset and you’ll evaluate people differently.

Investors show you who they are in the fundraising and due diligence process. They are not going to change when you’re married they’re on your board.

Make sure you like and trust them!

5. Lots of fish in the sea.

There has never been more capital sources and types of investors out there!

Just like relationships, it’s not one size fits all and it may take a while to find “The One.”

The hard-charging Silicon Valley investor may be ideal for your friend, but the nice but ambitious Atlanta-based investor with lots of practical startup experience shared weekly may be just right for YOU!

(Hypothetically speaking of course. Just a random example.)

Find a good match based on your vision, experience, goals, and personality!

True for founders, investors, and love. 💕💕💕

Any other dating + fundraising advice? What helped you with your fundraising process? Any unwritten rules or expectations you navigated?