How can you build credibility with angel investors and VCs?

3 ways to build trust: 1)Write and share about the industry you are working at. This will help you position as an expert The investors want to invest in the experts 2)Meet and make friends with investors You should meet and connect with investors (in events, and specific meetings) to build relationships. This help the fundraising process faster 3) Help the investors in their work You can introduce good startups to investors You can share the knowledge in the industry with them This will build the good feeling of investors about you

Angel and Venture are very different. Make sure you know the investors and their goals. Regardless of your business idea, for early-stage companies, two fundamental questions need compelling answers: 1) Why you? You'll need to show that you and your team are the right ones to execute this plan. 2) Why now? You need to show that this is the moment for your idea. First-hand research and/or domain experience communicated in a compelling, data-driven manner is required. Part of the "Why you?" is about trust. Getting warm introductions to investors is better than a cold call. Connect with people who know the investors. For example, have networking meetings with portfolio company founders who can make an introduction. Find a way in.

After consulting with a startup founder who secured 1 crore in initial funding for an EdTech startup in English teaching for tier 2 & 3 cities of UP, key success steps include: 1. Showcase Traction: - Provide evidence of product-market fit and demonstrate the impact of your EdTech solution. 2. Reinforce Team and Advisory Support: - Emphasize your team's expertise & showcase reputable advisors or mentors in education and technology. 3. Craft a Compelling Pitch: - Develop a concise pitch outlining the problem, unique value proposition, and a well-thought-out business plan, revenue model, and a clear path to scalability. Need assistance ? I'm just a text away.

When I meet with investors, you want to focus on their needs and desires and not talk much about your ask. Why? You only want to make an ask from an investor you know is already inclined to say yes. Here's how I assess that: -- What are you actively mandated to invest in? -- What problems do you frequently encounter in your existing portfolio? -- What does your typical investment decision process look like? -- What return profile do you target? -- How do you like to be involved with your investments? This allows you to create clarity about your potential investor and make the decision yourself of whether to make the ask or not on your own terms.

It's a simple formula: -- Tell them what you want to do -- Tell them how you did it -- Tell them what happened -- Tell them what you learned -- Tell them what you're going to do next (repeat) The monthly investor letter is not just some afterthought. It's the most important thing a founder can do every month. When properly executed, and you are sending the letter to interested parties where you have a real relationship, you should see active responses from your stakeholders. The interest of stakeholders will be them reaching out because they can tell you are ready for their help.

Share your traction - repeatedly! The best way to keeping your prospective investors warm is to share updates with them on your traction. But you can always be smart about your updates. Share updates and that gives you an excuse to followup and remind your prospective investor of your existence. This does not mean you have to give out your headline numbers, but share updates on key developments in your business. Here are a few examples: 'We maintained our growth rate of 20% MoM for the 5th month' 'We have started a new service line for our customers, with very encouraging results' 'We see very encouraging results of our launch in Europe and have closed 3 new clients'

I think the biggest issue I have as an investor is when market projections are clearly overhyped. It is an immediate ‘tell’ to me that the CEO and team are not looking at things with clarity. It’s usually an indication of other issues that will arise. The counter to that is also true, when I sense humility and transparency in a forecast I have a stronger belief that the execs and team have a realistic approach to what lies ahead.

To demonstrate potential focus on two important pieces: 1. Know your strengths: Each business has a set of strengths and weaknesses. Your goal as a founder is to bring attention to your strengths. This starts with identifying these strength and then articulating them well to your audience. Your strengths could be your team, traction, unique insights, TAM etc. 2. Be Authentic: Trust is an important component in your interactions. All investors, esp. early investors, understand that there are parts of business which are unproven. Being upfront about them will create credibility and trust needed to prove your potential.

Here are a few ways to build a relationship with potential investors: 1. Engage in conferences & meetups: These places are great opportunity to make a first casual interaction. Use these to ask sharp questions and give sharp but crisp vision of what you are up to. Not a time to get too much in detail, unless explicitly asked for. 2. Engage in their content on LinkedIn / Twitter: This is again an opportunity to stand out. Everyone is mindful of who is engaging on their content and if you play this well, you are at an advantage. 3. Follow Up: Once you have made the first connect, its critical to schedule a followup meeting to share details. 4. Updates: This is the long exercise - share updates about your business to stay on the radar.

Your network is a BIG asset, leverage it! We all like to work with people we trust and that basic human nature works very well in Fundraising as well. Everything else being equal investors will always want to evaluate a team or business being recommended by someone they trust or know. Your first port of call should always be people you know - or better still those who have an interest in your business - to help you with introductions. This is a big reason why I always recommend founders to get connected and resourceful people in the ecosystem in their captable. People like founders of mid to large size startups or even LPs. They offer strong recommendations, that work.

Use LinkedIn strategically. Connect with investors on linkedIn and then create content around your business and share insights sparingly. DO NOT make it overt! Offer subtle indications on how your business is doing or what new insights you have identified. VCs may like it or not but you can be sure a good percentage of those in your network will see it. My experience is that LinkedIn is more powerful than what most people realise. The perfect platform for 'targeted marketing'.