Lines not dots

When do you fundraise for your venture? Always, says Nic Brisbourne, partner at European VC fund DFJ Esprit.

He writes, “The best deals on both sides come when a good relationship has been built between investor and entrepreneur, and calling a total halt to engaging with investors only to surface again when you want money is no way to build a relationship.”

His advice is to know when to dial it up or down through three distinct phases: a keeping the relationship ticking over phase, a warming up phase, and a full on fundraising phase.

In the “keep the relationship ticking over” phase, you touch base with quick updates. It’s personal and focused on building a relationship. In the “warming up” phase, you listen and learn by sharing your business concept with investors and getting feedback on your pitch. And in the “full on fundraising” phase, you develop a fundraising presentation, meet with investors and pitch, pitch, pitch. To read Nic’s blog post, click here.

Start building the relationships now, before you need the money. Show your progress through a series of positive interactions. Because investors invest in lines not dots.