There’s no Tinder in fundraising, only HUSTLE.

Let’s face it. Fundraising isn’t something that comes naturally to most people. Culturally asking for money isn’t appealing especially when you are asking for hundreds of thousands or even millions of dollars. Fundraising also isn’t something you master at business school or perusing articles online. No doubt, there are plenty of excellent resources available that will give you a framework of how to approach investors and craft your perfect pitch, but ultimately there is no formula to guarantee your success in attracting investors.

However if you‘ve done the heavy lifting of validating your product or service with quantifiable traction, I’ve learned through over a hundred pitches and listening to investors that there’s always one tangible factor they focus on: The Entrepreneur.

So what exactly are investors looking for in entrepreneurs?

There aren’t many articles written on the essential qualities of an entrepreneur in part because these qualities cannot be taught. Here I would like to suggest that who you are is more important than what you have done. To convince people that you’re worth backing, you need to understand what investors look for in entrepreneurs.

Investors spread their bets in areas they specialize in or in markets with promising growth. Most early stage investors I know are extremely hands on and meticulous. Imagine running a fund with over 50 companies in addition to managing your own partners, investors and syndicates. It is no small task. In the end, the only tangible thing investors can bet on is the people behind a company. If investors put their reputation on the line for you, they need to know that you have their backs. This is especially true for first time entrepreneurs who don’t have explosive exits and impressive track records to back their story. But regardless of the amount of success you have achieved, what you represent should always have priority over what you’ve achieved.

When I first started fundraising I was very nervous. I still get nervous before a meeting, but fundraising has since transformed into something I am passionate about. I mean, what is better than sharing your passion with really smart people and converting them into believers? I want to share with you six valuable lessons — aka the HUSTLE.

1. Humility

You can be the most bad ass leader, thinker, innovator, or hacker, but no matter how good you are, you are going to be wrong at some point, and you are sure going to make mistakes. Be humble, and even more importantly be honest. Be honest to investors and be honest to yourself. Admit what you don’t know, and always be open to learn. Humility is the best elevator pitch about who you are. Nobody wants to work with jerks.

2. Understanding

Mark Suster recently interviewed Troy Carter who was Lady Gaga’s manager and has an impressive investment portfolio including Warby Parker, Spotify and more. At Carter’s level of success in both tech and music, it is rare and refreshing to see that his best quality as Suster warmly pointed out is Carter’s determination to understand and engage with people. Here is what Suster wrote:

“I honestly think this is one of Troy’s intangibles. He seeks to really understand the party he’s sitting with and dedicate himself completely to that understanding in the moment. I say that because that’s what I experienced in my private meetings with Troy as well. And in a world where most people you’re sitting with are simply waiting for you to stop talking so they can say whatever is in their heads already — this level of paying attention, trying to understand the person you’re sitting with & truly engaging is rare.”

It’s important to get to know who you are talking to and be real. Don’t just pitch. Listen and process. Fundraising requires genuine mutual understanding between investor and entrepreneur. If you walk into a meeting only thinking about the amount of dollars you can close, you have already failed.

3. Sharing

Regardless of whether you bootstrapped your company with your own money or you are raising outside capital, it will serve you well not to be overly protective or feel entitled over your achievements. Much has been given, and much will be required. Along the way, you have been given advice, money, connections, or opportunity. Let’s not fool ourselves. Share harder than you ask, and give credit where it’s due. You can be lean, relentless and still generous. And do not underestimate the power of sharing or your ability to give back. You are not the only person starting a company. The best way to receive is to give.

4. Team Player

Most investors, whether or not they are interested in investing are extremely helpful. Be a team player, build the best team you can and treat your investors as your supporting team. Never think of investors as just money or a means to an end. Giving funds is only one of the many ways they can help. Choose wisely and your investors are your most valued allies. Don’t be shy about putting your investors to work. They are invested in your success and want to help. So let them.

5. Long Vision

Commit. Execute. Measure. Repeat.

I used to treat fundraising as something to check off the to-do list. I soon realized that fundraising is not just a momentary interaction, but a relationship. It’s extremely rare to walk into a meeting for the first time and walk out with a cheque. Fundraising requires careful research, follow up meetings and due diligence. Ultimately, when you fundraise, you are making two promises. A promise to execute — the plan, and a promise to deliver — users, revenue, partners, subscriptions, growth rate, etc. Whatever you promise, it is not going to fulfill itself in a moment’s time, and the promise you make is likely to change as you continue to validate.

There’s no Tinder in fundraising.

An investment return cycle is 5–10 years or more, that’s longer than a lot of marriages. Start thinking long term and cultivate meaningful relationships.

6. Exit Savvy

Some investors believe that entrepreneurs who think through their exit strategy are not obsessed enough with the problem they are solving. I disagree. Thinking through your exit strategy shows market knowledge and domain expertise. It also helps set expectations early on with your entire team. This is not the same as working only for an easy exit and no exits are easy.

A successful exit requires a company to add real market value. And a good exit strategy requires real world understand of who’s in the market and how do they fit in. Your exit strategy helps identify both viable competitors and strategic partners, and those are important factors to consider when you lay out internal goals and milestones. You will not be able to identify the right opportunities for your company when they come along unless you have thought about it. If Snapchat didn’t think long and hard about how an exit would add to or take away from their vision, they might have accepted Facebook’s offer. If you are truly focused on solving a problem, you should consider how an exit would or would not serve the ultimate purpose.

Conclusion

Being an entrepreneur is so much more than starting a company, it is a journey that will continue to shape and mold who you are. So sell your passion concisely and don’t be a jerk. Keep up the HUSTLE.