Investors Are Mentors – Why There’s More To Startup Financing Than Just Money
By Heikki Väänänen, CEO & Founder | HappyOrNot
In my latest Forbes article I explore the multiple benefits and advantages that investors can deliver, beyond just financing.
It might seem obvious that the most important factor when taking an investor on board is the amount of money they’ll be able to provide, and while this is, of course, important(!) you must consider what else they can bring to the table.
We have been fortunate to work with such incredible investors throughout our journey, with Verdane Capital, Northzone, and Airtree Ventures all playing such crucial roles in our advancement and growth. Their financial investments helped to take us to the next level, but, beyond that, they all helped to open doors and make connections that otherwise would have been near impossible to secure, and the advice they give us is truly invaluable.
We spent a long time resisting the approaches of VC firms but we always made sure we were friendly with them and maintained open dialogue. Then when the time was right for us to secure investment we had strong relationships already in place, which meant the whole process was much more seamless and quicker than if we were reaching out cold.
Investors are very influential and will have a say in how your business operates, so it’s paramount that you go with one(s) that share the same vision as you, and you must be confident that you’ll be able to develop a positive and constructive day-to-day relationship, otherwise there’ll be friction. Just look at Travis Kalanick and Adam Neumann…
So, if it’s time for your company to raise money, make sure you don’t just seek investors with the deepest pockets…
Read the full article on Forbes.