posted at 20:50
Author: Mo Marshall
Sat, 29 Nov 2014 04:00:17 +0000
Psychology of a VC and how to take advantage of it
TIP FOR ENTREPRENEURS:When you meet an investor always try to get a sense of where his/her head is vis-a-vis the hunting struggle. If your target investor only invests via referrals of trusted party make sure you build strong relationships with people he/she knows. Some investors never give an answer and keep going asking for additional data points in the hope that the data will make the decision for them. If you like it or not there are times in which your investor will need to regroup with his/her partnership in order to make a decision. As an investor, 99 times out of 100 the answer is NO. While it's tough for the entrepreneur to hear, telling someone who is working 24/7 on his/her dreamssorry you are not good enough is NOT a pleasant experience! Good investors try to help the entrepreneur with whatever means they have: leveraging their network for good hires, sharing cross portfolio knowledge, being available as an external sounding board, psychological support, practical support, etc. Do not think that all the investors need to be managed in the same way: try to understand who is the person, his/her strengths and if and how he/she can contribute to your success. Do not listen to gossips, do your homework, talk to the entrepreneurs that know him/her personally: both failed investments and successful ones will give you the best reading on your potential future investor.

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