How can you evaluate whether a potential investor is a good fit for your startup?

So many startups are suffering from poor leadership. Not executive leadership, but Investor leadership. Why? Because most VCs have it backwards. They are here to control and monitor. Instead, they should be here to help! The best vision and value aligned investors are here to help early-stage entrepreneurs maximize their chances of realizing their dreams and making a massive positive impact on our society! The best investors help founders to the best of their abilities, strategically and operationally, while also providing emotional support to endure this long journey 🎢

The first thing is of course to make sure the investor has the pocket for investing, now and in the future. Investors will evaluate several investment options, and pick the one they find will fit their purpose - so you may not need to spend a lot of time doing the same, just ask how they see the match. In my experience, the companies I have seen as most successful in investor dialogues, really understand how they are perceived by the investors, they know their own strengths and weaknesses and seek investors that can contribute to mitigating their weak points. They outline a growth plan and budget and ask for the investor's input on how they would prioritize and overcome the challenges. The dialogue will reveal if there is a match.

In my experience this is what I can see when a VC is gonna be a great match: -Zero Hierarchy The investor never assumes they know better, they are here to direct you or teach you. -Genuine Interest They are open and humble about learning from you and your business. -They ask instead of answer They are more eager to understand, learn, see, and they prove it by asking significantly more questions than providing answers.

If the relationship starts with a scuffle, let it go. Remember that you will be working with this investor for several years. If you start badly, think about how it will be in the future, especially in crises. If you are not on the same wavelength, there is no point in going together. The road with an investor who is not a good match will be a nightmare. It's better to find someone else who can work hand in hand with you. And whom you can count on in moments of trial.

It may sound pretty obvious, but one of the first things to do -and many founders overlook- is understanding if your startup matches the investment thesis of the investor and the fund. What are they looking for? In terms of industry, geography, stage, etc. That might save both parties a lot of time.