Communicate with Investors after the Pitch
Your actions after you pitch to investors are almost as important as the preparation leading up to the pitch. Raising capital is very much about creating relationships with investors over a period of months. If you do a good job of staying in touch and communicating your company’s milestones, you’ll be more likely to secure your funds in the future.
Sometimes investors don’t act as quickly as you’d like them to. After you pitch to a (venture capital) VC or angels, you may expect a whirlwind of due diligence and meetings shortly thereafter. Depending on investors deal flow, the time of year, and a ton of other variables, they may not hustle to get your due diligence done.
Instead of assuming they’re not interested or getting put off by the delay, keep talking with them. Don’t be a pest (e-mailing a bunch and asking to “grab coffee,” for example), but offer new information as it arises and generally make an effort to stay in touch.
VCs are always looking to make a good investment. Sometimes they don’t see you as a good investment the first time they meet you. As your company makes progress, their tune may change. So even though a VC turns you away today, she may beg you to come back tomorrow, if you know how to play the game right.
VCs look at your investment in comparison to other similar deals but also in comparison with all current investment opportunities. When there are top-notch deals on the table, your deal may fall third or fourth in line for attention. Months later, when the high-quality deal flow has slowed, you may be on top of the heap.