After working in Public Relations for technology companies and having written some articles for Proxxima and Startupi, I have no doubt that the ability to cultivate good relationships is fundamental for any entrepreneur.
Nobody does things alone.
It is always recommended that you have co-founders and mentors who will help guide your idea in a real company. Another important part is how to be able to receive investment.
The first steps are much more about the relationship than necessarily a financial round. After all, there is no investment by affinity or friendship when it comes to real investors. My point is that being remembered and recognized by the investor (before presenting his winning team and innovative startup), makes all the difference.
By watching this edition of Mark Suster's always recommended web show This Week in Venture Capital, I decided to highlight the crucial points of the interview. He is a "pop investor" in the United States, as he constantly blogs with quality material. I had the pleasure of interviewing him 3 years ago at TechCrunch Disrupt San Francisco.
Let's go to the highlights:
Don't be an idiot. Doing so will burn your movie right away and show that you haven't even done your homework. Your idea has very little value because what counts at the end of the day is your ability to execute.
Most likely, the investor has heard ideas very similar to yours somewhere and will not want to commit legally to "bet" only on your company. Remember that investment is not camaraderie. It is business and you will be charged for a return.
I liked it when Suster comments in the video about the fact that people who don't even know each other are working on the same ideas. So focus on execution!
In that case, you need to have an online presence with your company or person. From a blog to Twitter, to a Podcast, or a splash page for your start-up... it doesn't matter. If you don't know people, you'll have to work to be known.
Don't forget to let Diego Remus know about your Start-up. ;-)
Another point is that many investors are online out there, be it on Twitter on blogs, etc.
Follow them, interact with them, and show that you are on the field playing ball, but keep your posture. Suster says there is nothing more inappropriate than arriving via Twitter by sending a link from his start-up to Venture Capital, without even knowing him or having interacted. Use e-mail, phone, and other less "hot" tools. When people are exposing themselves digitally and you as an entrepreneur are not able to make the connections, it's a super negative point. Knowing how to network is fundamental.
The minimum time for you to receive investment is from 3 to 9 months of work (sometimes even longer, for Brazilian standards). Negotiations and assessments along with legal paperwork take a long time.
Suster says it is important to know who you are talking to in the Venture Capital or Private Equity Fund Management company. The speed of things can vary if you are in contact with a junior associate compared to a portfolio director. The point is that you will not receive a money bag after presenting a powerpoint. Things take time.
Remember: if your company doesn't end up getting the expected investment, you should always be grateful and respectful. The market is very small and the news spreads quickly. Be cordial and independent of what happens, thank the investor for the time he has dedicated to your company.
I have been self-quarantining for the past 10 days as I have presented all COVID-19 symptoms. Some people close to me also tested positive.
As you work on making progress towards your evolution you must find an agreement with yourself to operate out of virtue and sacrifice.
The world respects those that take risk. People that put skin in the game and are willing to self-sacrifice to build something greater than themselves.
