How to Get Introductions to Investors

How to get an Introduction or Referral to an Angel Investor

Most Entrepreneurs have figured out by now…angel investors are just serial Entrepreneurs.  Just like us..they like to hide.  They are just off doing their own thing.  Deals come to them, their deal flow isn’t dependent on going out and sourcing for deals.

Referrals, referrals, referrals

The name of the game for where to find investors is referrals, referrals, referrals.  Okay on second thought, let’s make that introductions, introductions, introductions.

Getting those introductions to angel investors

Alot of people that have those connections on where to find investors are simply retired Entrepreneurs, that have been left with a whole black book of valuable connections from their glory days.  But don’t forget, they have to eat too…and many of them keep food on their plates by facilitating these connections.

So unless you can go straight to the source of the money (which is pretty unlikely unless you planned on being an Entrepreneur and have been building relationships since you were young); you’ll have to go through other Entrepreneurs.

Where these other Entrepreneurs are at

These Entrepreneurs that can facilitate introductions for you are all over the place.  I actually had someone contact me trying to offer me a job, his name was Rob.  I told him “oh no…I don’t work for other people.  I’m starting up a new company”.  Rob was pretty cool, and immediatley pulled out his black book “do you know this person?”…”okay, go there…tell them Rob sent you”.  Entrepreneurs are cool like that 🙂

Look for:

  • Consultants
  • Attorneys or CPA’s
  • Entrepreneurs who have fund-raised before

The difference between an introduction & a referral

I learned a big lesson is one of my startups…there is a huge difference between an introduction and a referral.  A referral is from someone who is trying to help you…but they don’t have the time, or possibly just want to get rid of you pretty fast.  This could also be the case.

Now..introductions

Real facilitators, often those motivated by some form of compensation such as equity or cash, will make introductions…not referrals.  This is what you want.  Introductions to angel investors hold much more credibility.  This person has gone out of their way to facilitate a lunch, dinner, or meeting between an Entrepreneur and angel investor.  That speaks loudly.

Looking for the one to make an introduction

Here is just a few items on a checklist you’ll want when you’re looking for someone to make an introduction to angel investors:

  • Do you have the time
  • How can I motivate you to make a good introduction
  • Are you in my industry
  • Do you have connections that fit my company

 

This post was sponsored by Paul, the Founder of EZ Numbers. They offer an EZ Tool for complete start-up financial packages/projections, as well as consulting by the hour if you really need a second opinion in this area. Paul is a really awesome “numbers” guy.

 

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