When it comes to fundraising for your startup, there is no one-size-fits-all approach. Venture capital investors come from different backgrounds and have various reasons for investing, which shapes their perspectives on companies.
To maximize your chances of closing a funding round, it’s essential to understand which type of VC investor you’re dealing with. Here are the four venture capital personas, along with tips for how to partner with each one:
1. The Follower
This investor seeks credible brands to invest alongside to help de-risk high-pressure investment decisions. They never fund something based solely on thesis or early business metrics. To get their attention, it’s crucial to have one of the other three types of VCs on board before reaching out.
2. The Academic
Academic investors have clear theses and stick to them. They deeply understand your company’s space and have the network and knowledge to conduct due diligence on your business. They also make valuable thought partners and may even feel like co-founders in how they help you build on your thesis. If you suspect an investor may be an academic, ask them what investment theses they’re working on.
3. The Feelers
Feelers are investors who rely on their intuition and personal instincts when investing. They are attracted to founders who display authenticity and emotional intelligence. To win over feelers, it’s best to focus on building a personal connection with them and sharing your story.
4. The Power Broker
These investors have a deep understanding of the industry and bring with them a wealth of connections and resources. They invest both their own and other people’s money and can effectively help you grow your business. To land a power broker, you need to have a clear and compelling growth strategy and be able to articulate how their network and resources can help you achieve your goals.
In conclusion, it’s essential to understand the different types of VC investors when fundraising for your startup. By knowing which type of investor you’re dealing with and tailoring your approach to meet their needs, you can have a better chance of closing a successful funding round.
