2 min read How to Raise Funding Step 5: Developing Rapport with the Investor
When I ran angel networks using the dinner club model, I had entrepreneurs come in to pitch my investors. Ninety percent of them would go away, and we would never hear from them again.
We had no idea what happened to them.
About ten percent of them, though, would come back and give us updates and reminders about their deal. By and large, those were the startups that raised funding from the group.
One of the key steps when considering how to raise funding is building a rapport with someone. This starts with introductions and awareness and continues with ongoing communication to a level of familiarity.
In sales, it takes seven touches to close a deal. So too, does it take seven touches to close an investor. For substantial fundraises, it may take even more.
The key here is that you must build a relationship with the investor before the funding, not after. If you already have investors, think about how much you know about them. How long did it take to figure those things out? In most cases, it will be the same with your investor prospects.
Read more on the TEN Capital eGuide: http://staging.startupfundingespresso.com/how-to-raise-funding-eguide/
Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group