Building Relationships with Investors: Do Your Homework

Fundraising isn’t just about metrics—it’s about relationships. While traction, team, and market opportunity are critical, founders who build strong investor relationships early often find fundraising much smoother than those who treat it as a one-time transaction.

At our State of Pre-Seed & Seed VC panel, investors repeatedly emphasized one key takeaway: Start networking with investors long before you need to raise.

Here’s how to strategically build relationships with VCs to increase your chances of securing funding when the time comes.

‍

1. Don’t Just Look at Firms—Focus on Individual Investors

One of the biggest mistakes founders make is only targeting VC firms instead of specific investors within those firms.

📌 Brian Hollins (Managing Partner, Collide Capital) explained:

💡 “Look at individual investors within the fund. Who shares your background? Who writes about your industry? Build relationships early.”

Why does this matter? Investment decisions are often driven by individual partners. Even at large firms, each investor has personal interests, sector focus areas, and preferred deal structures.

Build Your Target Investor List

To make the best use of your precious time, you’ll want to focus on getting in front of the most relevant investors for your startup. Instead of taking a scattershot approach, build a structured target list of 50-75+ relevant investors who are actively investing in your industry and stage.

How Do You Go About Finding These Investors?

First, define the criteria you’re looking for in an investor:

✅ Stage fit – Are they actively writing checks at pre-seed or seed?
✅ Sector focus – Do they invest in your industry (e.g., AI, fintech, climate tech)?
✅ Investment thesis – Does their approach align with your vision?
✅ Check size & ownership targets – What’s their typical check size, and how much equity do they expect in return?

Where to Find Investors?

🔍 Some of my favorite resources include:

• 🤝 Visible.vc’s Investor Connect (free) – A great way to find investors who fit your stage.
• 🤝 NFX’s Signal tool (free) – Helps identify and connect with active investors.
• 🤝 Crunchbase database ($49.99/month) – Provides deeper insights into firm activity.

You can also check top investor listicles in your industry and ask founder friends, advisors, or existing investors for 1-2 recommendations of VCs they believe would be a strong fit.

How to Identify the Right Investors for Your Business

✅ Find investors with aligned expertise – Look for investors who have backed similar businesses in your industry.
✅ Check their writing & public opinions – Read blog posts, LinkedIn articles, and Twitter threads to see what excites them.✅ Leverage mutual connections – Warm intros from other founders, investors, or mentors can increase your credibility.✅ Look for investors who invest at your stage – Some VCs focus on pre-seed, while others prefer later-stage deals. Make sure you’re pitching the right people.

💡 Takeaway: Instead of cold-pitching an entire firm, build relationships with specific partners who understand and care about your space.

Gather Key Investor Insights

As you add investors to your target investor list, start collecting initial research about each fund:

📌 What to Look For:
💰 Check-size – Do they typically write $250K-$1M checks, or $2M+?
🚀 Do they lead rounds or follow-on? – Some VCs prefer to take the lead, while others wait for validation before joining.
✍ Thesis and areas of expertise – Do they align with your vision and market?
📊 Ownership targets – Some funds require 10-15% ownership in a company, while others are more flexible.

💡 If you can’t find this information, don’t stress! During your introductory calls, you’ll ask investors directly to fill in these gaps.

‍

2. Start Networking Before You Need to Raise

The best time to meet investors? Before you’re actively fundraising.

📌 Jenny Fielding (Managing Partner, Everywhere Ventures) shared:

💡 “We try to get to know founders long before they’re raising. If you’re not actively fundraising, use this time to network and introduce yourself to investors in a low-pressure way.”

Why? Because fundraising under time pressure is stressful—and it often leads to rushed, lower-quality investor matches.

How to Build Investor Relationships Early

✔ Attend industry events & meetups – Conferences, demo days, and invite-only VC gatherings are great opportunities to connect.
✔ Engage with investors online – Comment on their LinkedIn posts, share thoughtful insights, and get on their radar.✔ Reach out for advice, not money – Investors appreciate founders who ask smart questions about their market instead of just pitching them for funding.
✔ Stay in touch with casual updates – Send a quarterly email update on your startup’s progress—even if you’re not fundraising.

💡 Takeaway: Building trust takes time. Start investor conversations when you don’t need money, so they’re already excited when you do.

‍

3. Fundraising is a Two-Way Street: Are They the Right Investor for You?

Many founders focus so much on impressing VCs that they forget to evaluate investors themselves. But the right investor isn’t just someone with money—it’s someone who adds value beyond capital.

How to Assess Whether an Investor is a Good Fit

📌 Ask yourself these questions:

✅ Do they understand your industry? If they don’t, they won’t be able to support you strategically.
✅ Do they invest in companies at your stage? A Series A-focused investor probably isn’t the right fit for a pre-seed raise.
✅ Do they have a strong network? The best investors open doors to customers, talent, and other investors.✅ Are they founder-friendly? Some investors are hands-on and supportive, while others are more transactional. Know what type of partner you want.

📌 Brian emphasized:

💡 “Founders should be just as selective about investors as investors are about founders.”

💡 Takeaway: Don’t just accept a check from anyone. The right investor can be a game-changer for your business.

‍

4. Warm Introductions Matter—But There’s a Smart Way to Get Them

Many VCs prefer warm introductions—but not all intros are created equal. A thoughtful, high-quality introduction from the right person carries far more weight than a generic forward from someone who barely knows you.

How to Secure the Best Warm Intros

📌 Prioritize introductions from:
✔ Founders they’ve already backed – Investors trust their portfolio founders, so these intros carry the most weight.
✔ Other investors – Even if one VC passes on your round, they may introduce you to a better-fit investor.
✔ Respected industry operators – If a known startup leader vouches for you, it increases credibility.

📌 How to Ask for an Intro the Right Way
When requesting an introduction:
✅ Make it easy – Provide a short, punchy email blurb they can forward.
✅ Be specific – Explain why you think this investor is a strong fit.
✅ Don’t spam – Avoid asking multiple people for the same intro—it can backfire.

💡 Takeaway: Warm intros work best when they come from the right people—and when they clearly explain why you’re a great fit for the investor.

‍

5. Follow Up and Nurture Relationships Over Time

Building strong investor relationships isn’t about one-off meetings—it’s about ongoing engagement.

📌 Tips for Staying on Investors’ Radar:
✔ Send occasional updates – A quarterly email about your traction, product milestones, and hiring updates keeps you top of mind.
✔ Share market insights – If you come across a great industry report or trend, pass it along—it shows you’re thinking long-term.
✔ Meet them outside of fundraising cycles – If an investor passes on your round, check in a few months later when you hit a milestone.

💡 Jenny emphasized: “The best founders keep investors engaged with small, meaningful touchpoints over time.”

💡 Takeaway: The strongest investor relationships aren’t built overnight—they’re nurtured consistently over time. Don’t just reach out when you need money.

Final Takeaways: Winning the Investor Relationship Game

✔ Build a structured investor list – Prioritize 50-75 relevant investors who fit your stage and sector.

✔ Target the right investors. Don’t just pitch firms—find individual partners who align with your sector, stage, and vision.✔ Start early. Build relationships months (or even years) before you actually raise to establish trust and familiarity.
✔ Vet investors carefully. Not all capital is equal—choose investors who bring more than just a check.
✔ Leverage warm intros wisely. The best introductions come from portfolio founders, trusted investors, and respected operators.✔ Nurture relationships over time. Fundraising is a long game—keep investors updated so they’re ready when you need them.

By treating investor relationships as long-term partnerships, not just transactions, founders can build a strong network that accelerates fundraising and company growth.

‍

‍

Frequently Asked Questions (FAQ)

1. Why is building investor relationships important before fundraising?

Investors prefer to invest in founders they know and trust. By networking early, founders can build credibility, gain valuable insights, and increase their chances of securing funding when they’re ready to raise.

2. How do I find the right investors for my startup?

Look for investors who align with your stage, sector, and investment thesis. Use tools like Visible.vc, NFX’s Signal, and Crunchbase to research active investors and prioritize those with relevant expertise.

3. What’s the best way to approach investors before fundraising?

Engage with investors through industry events, online discussions, and informational meetings. Instead of immediately asking for money, seek advice, build rapport, and keep them updated on your progress.

4. How can I secure a warm introduction to an investor?

The best warm intros come from founders they’ve already backed, other investors, or respected industry leaders. When requesting an intro, be specific about why the investor is a strong fit and make it easy for the referrer to forward your request.

5. What factors should I consider when choosing an investor?

Beyond capital, evaluate investors based on their industry expertise, network, hands-on support, and alignment with your company’s vision. The right investor should add strategic value to your business.

6. How do I maintain investor relationships over time?

Send periodic updates on traction, product milestones, and market insights. Stay in touch outside of fundraising cycles to nurture relationships and keep investors engaged in your progress.

7. What mistakes should founders avoid when approaching investors?

Avoid cold-pitching entire VC firms, waiting until you need money to build relationships, and over-optimizing for valuation over strategic investor fit. Instead, focus on building genuine connections and targeting the right partners.

‍