Fundraising

by Ryan Breslow

Here are some signs of bad investors: ● Large ego ● Treating you with anything other than the utmost respect ● Unsophisticated questions (they really just aren’t getting it, or perhaps they’re even excited but for the wrong reasons) ● Extra investment steps (for example, holding you up by saying, “I want you to meet with my friend who knows about this”) ● Missed deadlines (or general slowness) ● Unclear investment criteria ● Bad energy (judging investors based off your energetic connection with them is incredibly important) Disregard the investor’s brand and prioritize your assessment of them as an individual. In fact, bringing on an investor with a strong brand has real downsides. You’ll run the risk that they have outsized influence over your board, your other investors, and your organization. It’s hard to butt heads with someone who everyone is afraid to disagree with. You’ll end up spending most of your time managing your relationship with this person rather than managing your business.