
Startups presenting business plans to VCs have a much better chance of getting a meeting and maybe an investment if they know the VC already.
So what’s the first answer to the question “what is the best way to approach a VC”? Get to know them before you start pitching them for money.VCs invest in lines, not dots
As entrepreneur-turned-VC Mark Suster once said, VCs invest in lines, not dots. If, when you come to ask for money, a VC can see that your story over the last 6/12/24 months has unfolded according to plan – or that, if a plan has changed, the changes have been sensible – then your credibility will be strong: you’ve got “a line”. If their assessment is based solely on a plan received at one point in time, then it will be less credible – you’ve got a dot.How to meet a VC
The best way to meet a VC so you can begin the process of drawing a line for them, is to get an introduction. Most VCs have a small number of people who they know well and trust, and if they send an email saying “you should really get to know XYZ company”, then the company will get a meeting and the relationship will begin. Hang out with VCs
The next best method of beginning to draw a line is to hang out in the places where VCs hang out and get to know them. Every city with a startup scene has regular events and mixers where VCs go to network and meet with interesting startups (check out StartupDigest for a list of events in your area). These events are a curious blend of work and social so don’t over-pitch. It’s better to build a relationship and let the details of your startup emerge over time. If you need to get straight on with fundraising and don’t have time to build a relationship first, then getting an introduction is still the best method of making contact with a VC, followed by networking, then sending a cold email or making a cold call. Most VCs try to reply to all incoming emails and calls requesting investment, but in practice calling or emailing cold has little chance of success. If you don’t have a good network of VCs, and can’t find a friend who does, then an hiring an advisor is the next best way to make contact quickly – see this post on whether you should hire an advisor.Tactics
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