The Other Dating Game
You know this night is important, and so naturally you want to look your best. You spend hours and hours primping nervously, going over every last inch, and every last detail, making sure that you make the best first impression you possibly can.
Usually you aren’t nervous for first meetings. You know how to talk about yourself, and you know how to make a great first impression and turn on the old charm. This time though you’re definitely nervous as you head for the table, trying your best to stay calm, just hoping that they like you.
There they are, exactly as you’d pictured, if not slightly taller. You shake hands, swap introductions, and then the real fun begins.
Sounds like a date, no?
Except it’s not. You’re a founder, and this is your first meeting with a potentially game-changing investor. More importantly, it’s less about whether or not they like you, and more about whether or not you like them.
Initial meetings with investors feel a lot like dating, which means that some founders might love the dance, but most absolutely hate it.
The primping process is even similar, although instead of hair and outfit you’re busy combing through your pitch deck and financials, trying to make both look their absolute sharpest.
You’re so incredibly nervous about putting your best foot forward that you worry the entire time about what the other person (or often group of people) thinks about you.
Most founders believe that they’re the ones who have to make all the effort. They have to put their best foot forward, they have to really impress investors, and at the end they’ll have to do everything but get on their knees and beg for a second meeting. As a founder seeking funding, it’s easy to believe that investors are holding all the chips.
We’ll let you in on a little secret – that isn’t true!
Founders have so much more power and status in these conversations than they realize, and they should simply not be afraid to maintain command of the conversation.
They worry that they’re at the mercy of investors, and that they need to look their best in order to attract an investor’s attention. They’ve long held onto the belief that investors dominate the conversation through money and power, and they’re fighting hard to catch up.
Instead, it’s time to flip the script. It’s time for investors to show what sort of value add that they can bring to the table.
In general, while investors can bring value-added advice, intros and guidance, the biggest thing that an investor brings to the table is money. And because of that, the one thing that they mostly have to show for their success are their numbers – that’s it. Yes, money is important, and it unlocks possibilities for future growth, but the variety of skills and talents that any founder brings to the table says so much more than what’s on a spreadsheet.
Investors have that money right now – in fact, they have a lot of it. A report from PwC shows that investors’ dry powder (uninvested funds) was up to $3.7 trillion globally at the end of 2022. While 2023 may be a more cautious year given rising interest rates, even more modest investors are still open to the right opportunity.
The economic conditions may change over time, but when investors have the cash, they’re usually looking to spend it.
Let them spend it on you.
The market is built for those who know how to play the dating game. They understand that investors are primed and ready, and that the money is there for the taking.
The sooner you can learn how to successfully play the ‘dating game,’ the better your odds will be at securing that investment.
Botton line. Don’t ever forget that value that you’re bringing to the table.