Giving to Investors as a Startup Founder

blog Jun 20, 2023

When embarking on the journey to build your investor network and arrange consequential meetings with potential investors, so much of it lies in your mindset and approach. It might seem counterintuitive when you're at the forefront, asking for investment for your start-up, but one of the main keys to successful communication and positioning is embracing a stance of giving.

Despite the fact that you are asking for capital, you should be prepared to give, and you have a lot more to give than you might realize. Too many founders miss this point entirely, but this approach to networking can reshape your interactions with investors, enhancing your chances of raising the capital you need, all while building strong, reciprocal relationships. 

What You Can Give Investors as a Startup Founder  

Let’s start by looking at what you have to give to an investor. There is a lot there, and it starts with what you are offering in equity or access to your company and goes beyond that to what you can offer on a more personal level. When you are interacting with investors, you have the opportunity to give them the following: 

1. Opportunity

When you're out looking for an investment, you're obviously in the process of raising money for an opportunity that you believe in. You're not just there asking for cash; you're offering them a ticket to participate in what you hope will be a successful venture.

2. Knowledge

As the person driving a start-up, you're working on the front lines of your market, putting together something special and unique. This grants you a deep insight into market movements and technological trends. Your unique perspective can prove invaluable to investors, who appreciate this level of insight to spot new trends and opportunities.

3. Connections

Finally, don't overlook the power of your connections. While it might seem like the investor has a vast network that you want to tap into, don't forget that you can also offer your own. Whether it's other founders you can introduce, or other investors you know, your network can be a valuable asset.

The Ripple Effect of a Giving Mindset in Investor Networking

When startup founders approach networking with a giving mindset, positive dynamics are set into motion:

  1. Fostering Solid Relationships:
    Sharing your insights, offering your network, and providing them an exciting opportunity to be part of, cultivates an authentic, mutually beneficial bond with your investors. This is the foundation of a lasting relationship that can bring invaluable benefits in the future. Investors, appreciating the value they've received, are likely to stay connected over time, providing a network that can offer ongoing support, advice, and resources.
  2. Projecting Confidence:
    The act of giving not only communicates your belief in your venture but also portrays you as a confident and compelling individual to engage with. This is far more attractive to investors than appearing solely in need of funding. 
  3. Promoting Reciprocity:
    Investors who feel that you have offered them value are more likely to reciprocate, even if they decide not to invest in your venture immediately. They may provide assistance by making introductions to other investors or connecting you with crucial resources, or even by sharing their guidance along the way.

 

Giving to Investors - The Key Takeaway:

Overall, the giving mindset enhances your appeal to investors. You are no longer simply a fund-seeker but a valuable partner offering a unique opportunity, true expertise, and your own valuable network. 

This shift in positioning grows your chances of securing investment. It also opens the door for receiving more value out of the investors you encounter. The relationship with your investors can then have a long, compounding positive impact on your journey toward your startup’s success.

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