Raising capital is like dating

They are both brutal, demeaning and demoralising processes. Rejection is constant, having your hopes built up and then dashed again is part of your daily life. You are on a roller coaster you can’t afford to get off. It can also be a lot of fun if you go in with the right mind set.

Here  are some of the key similarities.

Up your game

You need to learn how to sell yourself in a way that attracts the kind of people you would like. Just like filling in a profile on an online dating website – you are going to have to put together marketing material and have a pitch ready at all times.

You need to show respect and put on your A-game. Appearance and packaging are important no matter how good the product or your team.

Expect Rejection

Just like when asking people out - a lot of people are going to look at you and your company and just say no. Rejection and pain will be your constant companion. You are constantly asking yourself, “why don’t they like me? Am I doing something wrong?”

You need to make the first move

After being rejected you may be shy about asking others out – which is a mistake. They may like you, but not be aware you are interested. This is the same with investors. If you don’t let them know you are out there looking and receptive to their interest then they aren’t going to offer. You need to make the first move.

Create openings for them to imagine being in a future with you

That initial attraction may fizzle at the first date. You need to have more than just an idea on PowerPoint, and you need to leave room for the other party to imagine how they can bring more than just money to the table. They need to be able to believe they can work with you.

Chemistry is important – but doubts may persist

Even after a few dates, consummation may not occur. You may be sending out signals, or not sending out signals about things that the investors are looking for. Who knows, there is chemistry at play here.

Pay attention to those who pay attention to you

One fundamental I’d like to leave with you is to never ignore someone who pays attention to you out of their own initiative. You can spend months chasing someone you like, but you need to pay attention to the ones who like you.

To put that even more simply, if somebody who has money to invest pays you attention you need to give them your full attention. There is a chance that they may be the only one to give you a chance for a while.

We all hear the stories about hi-tech companies where the CEO holds out for a better deal and then gets it. In dating terms they are like the supermodel who has no shortage of suitors and will look for the right partner. Are you really a supermodel? It’s one thing to have the attitude of one, but an empty bank account and maxxed out credit cards may help you change your mind.