7 Reasons Courting an Investor is Like Dating
There’s an old adage that Investing is like Dating. In fact, I’ve talked about the similarities both on meetings with investors, and dates with people who are qualified to be investors. So as something of a tongue-in-cheek yet still (Mostly) safe-for-work post, here are 7 ways courting an investor is like dating.
1. Your goal is to see how compatible you are with the other person.
Most of the time, if you want to get into bed with someone, you want to be compatible with them first. Getting money from an investor isn’t like a one-night stand. You don’t just get the check and then never hear from them again. Getting into bed with an investor is a long-term deal, so making sure you two work well together is simply a must. Otherwise, the break-up may not be pretty.
2. If you come off as Asking for too much the first time out, you probably won't get a second.
The first time you go out with an investor is kind of like that first coffee date. you’re both sizing each other up, and you want to see how you click. If you went on a first date trying to make out and take the partner back to your place, it’s probably not going to end well for you. Similarly, if you start asking an investor to whip out their checkbook on the first meeting, then you’re not likely to get a call back for a second.
In summation, the goal of your first date should always be to get a second. If you’re out with an investor, then the second meeting is the sole goal of the first meeting.
3. It Generally takes at least 3-5 meetings to jump into bed together.
As with dating, it generally takes 3-5 meetings to decide to get into bed together. Often, the longer it takes the more likely it is that the relationship will be fruitful down the line. At least to a point. If it takes more than 7 meetings to get a check, the investor (or your romantic partner) might just want to be friends.
4. Both Parties have something to gain, but generally speaking one has significantly more options than the other.
Just like women are generally more sought after than men in the dating scene, Investors are generally more sought after than entrepreneurs. This may sound crass, but the only pretty girl in the room is going to get a lot more offers than the 10 guys pursuing her. The ratio is similar for investors.
So sure, while everybody is looking for a mate, and every investor needs deal flow, generally one side has more options than the other. It’s important to remember that when attempting to court an investor.
5. They're Probably going to Google You.
Everybody does diligence in this day and age. If you didn’t think your date was going to check out your online presence, you should probably think again. Investors are going to look into your past history, and maybe even check your credit before they invest in you. Dates will do as much as they can on a similar level, but probably not check your credit.
Related: 5 Steps for Vetting Your Investors
6. If you jump into bed on the first date, you're in for a wild ride. a
One-night stands can be fun and all, but if you jump into bed with the wrong person right after meeting them it can be a real nightmare. (Or so I’ve been told…) If you don’t take the time to get to know somebody before you get into a serious relationship with the, you’re going to be in for a nasty surprise. All investment deals are serious relationships. Don’t let anyone tell you otherwise.
7. When you seal the deal, you might be stuck with that person for YEARS.
If you take money from someone you’ll be dealing with them until all investors somehow exit the company. This can be many years. The Series A Investors at Twitter didn’t exit until their IPO Years later, and a film generally takes 3-5 years to pay back their investors, if they ever do.
If you do get into bed with an angel investor to finance your feature film or web series, they’re going to be a part of your business for a long time. It’s not just about finding independent film angel investors, it’s also about courting them and making sure you’ve found the right investor, not just the first investor who makes you an offer.
If you want some help with this courting process, my free resource package is a great place to start. It’s got a free e-book that might answer some questions your investor may have. It’s also got a deck template you can use in your first meeting. Get it for FREE below.
