How Tinder Taught Me To Fundraise
Fundraising is a lot like dating.
Let me explain.
There are silly guidelines in place, it’s easy to be douchey, there are endless rules to follow, and sometimes, it feels a lot like a numbers game. But for the sake of business — or your personal life — there’s one thing that goes a long way: courtship.
Once upon a time, people went out into the world to meet people, to make deals, or to fall in love. While the pool was smaller, it was based on actual connection and not a digital footprint.
Today is no different. The thirty people you meet in real life can take you further than the thousand you interact with online.
For business, courtship can make all the difference.
Like dating, entrepreneurs often focus on quantity over quality, and breadth over depth. The fundraising process, especially among early-stage companies, has shifted priorities from building a great company to building a great pitch deck.
Sure, a nicely-designed Tinder profile may get you a lot of first dates, and a high-quality pitch deck might get you a lot of first meetings, but what comes after?
I’ve been on both sides of these strategies with my newest venture, KOHA. In our initial fundraising efforts, we did everything by the “new rules”. We spent months assembling a very impressive multimedia pitch deck. We went broad in our fundraising strategy, sending the deck to every potential investor with an email address and a pulse. We got a ton of meetings.
We were a little douchey.
And then? Absolutely nothing happened.
It’s what we deserved for having the wrong priorities. It was about the look and feel of something, not the actual connection to the product. So now, when it comes to fundraising efforts, I’ve changed my entire approach.
1. Throw the “new rules” in the trash.
Forget the old rules. Don’t be coy, play hard-to-get, or hide your excitement when trying to earn someone’s trust and money. Be authentically yourself. People are investing in you — not just your business.
2. Know when it’s a bad fit.
The more honest you are about your company and its true mission, the more quickly you’ll learn whether or not there’s real potential for partnership. Don’t get swayed by numbers. Ask yourself if you want to be in business with whomever you are hoping to gain funds from. At the end of the day, anyone you invite into your business is invited into your metaphorical bed.
3. Stop viewing your business relationships as a game.
You don’t win a prize for having the most connections on a social network or the biggest rolodex of angels and VCs. The winners are the people who cultivate the most depth and meaning from their social sphere — those who actually make shit happen — not just the smoke and mirrors game.
4. Never fake it.
We’ve all faked it at some point, but what happens if someone decides they like the fake you, the fake premise of your company, or the bloated promises? Making deals with with the fake you is a recipe for disaster. Be humble and honest. It will take you further and gain more respect.
5. Don’t keep score.
The truth is, there are any number of reasons that an investor might decline to invest. Many of them have absolutely nothing to do with your company. Maybe another opportunity came along or maybe they simply don’t have the time for proper due diligence. The point is, there’s no way of knowing, so don’t keep score. Every no leads you closer to a yes.
6. Be organic.
Let the game come to you. That doesn’t mean you shouldn’t be proactive in seeking out mentors and advisors, but if you focus on building friendships and seeking guidance first, when the time comes for a fundraising round, you’ll already have a strong network in place.
Ultimately, someone will invest in you because you proved your business model, not because you proved you can build a deck. If you’re focusing on the pitch and the perception, rather than your startup’s real-world value, it’s time to rethink your priorities.
Don’t work on your game; work on yourself and your business.
In time, I guarantee the right people will notice.
