Networking Effectively by Scott Bradley

Guest Post by Alex Lindahl: Networking with Venture Capitalists and Investors

Alex is a serial entrepreneur and co-founder of Textworks and College Mogul. His blog follows and obsessively profiles college entrepreneurs and their startups.

I have known Scott for several years now and avidly follow his blog. As a serial entrepreneur myself, I can’t stress the importance of networking enough. It not only opens new opportunities, but it’s crucial for launching and growing a successful business. Entrepreneurs who are able to leverage their network are usually able to gain a competitive advantage over those who can’t. Although entrepreneurship is all about developing a broad skill set, we still require other resources, such as capital infusions, that we may not be able to provide ourselves.

Capital can be sought from family, private investors, incubators, angel investors, and venture capital firms. Venture capital is usually the hardest to come by, unless you’re in an elite circle or have already launched a successful business, networking is pretty much the only way to get in the door. Of course you can send emails, but it is usually an inefficient and ineffective way to land a meeting.

Miles (my business partner) and I have been fortunate to present to several prestigious VC firms, including the venture capital arm of Virgin, the brainchild of Richard Branson. We were only able to accomplish this through networking. I’ve heard several venture capitalists speak at Boston College and Babson College along with many other successful entrepreneurs that have been funded, and they all agree that it is the most effective way. They also stress, that the best way is to be referred by someone who knows them, someone who has been funded by the firm, or an entrepreneur who has established significant credibility. In other words, introductions are absolutely key, because that person can vouch for you and automatically legitimize yourself as an entrepreneur in the VC’s eyes.

We positioned ourselves for these introductions in several ways. First, we entered business plan competitions where we knew that venture capitalists would be judging. This gave us an opportunity not only to be seen, but gave us a reason to talk to them afterwards and suggest a meeting. This also led to other opportunities such as invitations to BBQ’s and networking events at their office. We also sought out events where associates of general partners would be speaking at. Even if we knew someone at the firm, we still went, allowing for a perfect introductory line informing them that we know one of his partners. If it is a new firm, let them know why you are at the event that you have been speaking to several firms. If you have given a presentation to one, it will become increasingly easier as you can tell others you have presented there, immediately increasing your credibility.

Always surround yourself and network with entrepreneurs who have been through the process. They will likely be able to provide introductions or introduce you to more people who might be able to. It is important to leverage connections and help others leverage their connection to you by making the same introductions. If you talk to one investor, always ask for new introductions to people that might help. Let them know that you are seeking feedback and looking to gain advice from as many people as you can. People are usually willing to help if you present your goals in a reasonable manner. I do want to emphasize that this type of networking is most effective in person; one cannot completely rely on their web browser.

For more advice on startups, funding, and entrepreneurship; check out http://www.CollegeMogul.com