There's an old VC aphorism: if you want money, ask for advice. Conversely, if you want advice, ask for money ☠️
So many founders, when asking for money, are surprised to hear, “sounds interesting, keep me posted! Oh, and here’s some advice!”
This isn’t a bad thing. If you get advice, the investor is starting to build a relationship with you! But if you’re looking for quick cash or don’t understand the underlying subtext, this is frustrating. To short circuit this response, start asking for advice. It will eventually lead to money.
You may be sitting there thinking, “But, Eric, I need money right now.”
Well, I look forward to working with you on your next company.
If your runway runs out a few months and you don't have awesome metrics, you had better have been building relationships with investors for months, or, for lack of a better phrase... you’re screwed.
Don’t want to be screwed? Start building those relationships and finding ways to meet new investors today. And tomorrow. And every day until you exit. One of my favorite aphorisms is “The best time to plant a tree was 20 years ago. The second best time is today.”
The effort you put into relationship building WILL eventually bear fruit and pay dividends. So make it a priority.