The last two checks I wrote were into companies I met a year ago. This is why building relationships over time is so important if you want to raise money.

“Investors invest in lines, not dots.”

Mark Suster

My Portfolio Behind the Scenes

Let’s take a look at those two recent investments…

When I first met each founder, the companies were just getting started. Both founders really impressed me as hardworking and intelligent.

But since the companies were brand new, I wasn’t ready to write a check yet.

They both kept in touch, sending me their investor updates and occasionally pinging me with some special news. I’d hit them up every few months as well, curious to hear the latest.

Fast forward a year. Both companies had grown enormously.

It was time to place some bets!

What To Do When You’re “Too Early”

When you meet with an investor, he’ll often give you a “too early” or a “not yet.”

That’s not the end of the world! That just means you’ve started a new relationship. That may not get you a check now, but it could in a few months or a year.

Note down what stage that investor focuses on. If you’re doing $40k ARR and he invests at $1 million, write that down in your investor spreadsheet.

Then, contact him when you hit $1 million.

He’ll already know who you are. He’ll also respect your persistence in getting all the way to that milestone!

It’s easier to get a check from someone you’ve already met than send another cold message.

Putting Fundraising on Autopilot

Some founders add prospective investors to their investor update. Daniel at Sent did this after we met last year.

Last month, I got an update from Sent. Their revenue was exploding. We’re talking the type of growth I rarely see among the thousands of startups I look at.

It was time to get in.

So I sent Daniel a message asking if there was any space left in their current round. Luckily, there was a small sliver left, which I quickly grabbed.

If you send your investor updates to prospective investors like Daniel did, your fundraising will be on autopilot.

When VC’s see you growing like crazy, they’ll be asking you to invest. You won’t need to ask them.

All you’ll have to do is focus on growing your business.

Wrap-Up

When an investor tells you no, it’s easy to get discouraged. Instead, you should view that as a beginning, not an end.

You’ve met someone new and started a relationship. Now may not be the ideal time to work together. But that time may come soon.

Get a firm idea of what they’re looking for. When you hit that level, try them again.

This time, they might be begging you to invest.

More on tech:

Five Things Founders Should Never Pay For

Meet My Latest Investment: Sent.dm

Three Green Flags I Look For in Founders

Save Money on Stuff I Use:

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

Misfits Market

I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $15 on your first order.