Somewhere in the fundraising universe:
Investor A: I can’t get there. Really love what you are doing though. Super happy to introduce you to other potential investors B, C, and D.
Founder: Awesome! YES! Please!
This happens again and again. Investors pass but offer to introduce the founder to another investor instead.
This, generally speaking, is a bad idea.
The first thing that investors B, C, and D will ask: “Hey, Investor A, are you investing?” And since the answer is a NO, the follow-up question is, “Why not?”
The reality is that whatever the reason investor A decided to pass, it becomes highly likely that investor B and C and D will pass as well. Not always, but more often than not.
The only investors who should be introducing you to other investors are YOUR investors.
An introduction from an actual investor to another investor is incredibly powerful.
Someone who is putting the money in is going to not only articulate your vision of the business, but also their view as to why this is a great investment.
Nothing, not even metrics, attract investors quite as much as other investors.
Most rounds come together exactly because the more investors you have, the more investors show up.
Investors talk to each other 😉
A founder from the current Techstars class was telling me that he was in a meeting with an investor who offered to introduce him to other investors. The founder politely declined and said, “Once you invest, I’d love for you to introduce us to other investors.”
This is a powerful message, and more founders should have the courage to deliver it. It is the right thing to do.