• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Commentary

The One Thing You Should Do Before Meeting With an Investor

By
Erik Severinghaus
Erik Severinghaus
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
By
Erik Severinghaus
Erik Severinghaus
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
January 28, 2016, 10:20 AM ET
Courtesy of SimpleRelevance

The Entrepreneur Insider network is an online community where the most thoughtful and influential people in America’s startup scene contribute answers to timely questions about entrepreneurship and careers. Today’s answer to the question “What’s the best way to pitch a startup idea to investors?” is written by Erik Severinghaus, founder and CEO of SimpleRelevance.

I recently heard an unconfirmed rumor that investors are human beings and like to be treated as such. The biggest mistake entrepreneurs make is only seeing dollar signs—not people.

Whatever you do, don’t pitch your “startup idea” to investors. Investors are absolutely inundated with startup ideas, and no matter how innovative yours may seem, it’s almost impossible to get them to expend enough mental energy to care. If you think of your idea as a product that you’re trying to sell to an investor, it’s simply never going to work.

See also: The One Thing You Should Never Discuss too Early in Business

Remember that no one invests in an idea. Investors find value in companies. Those companies are composed of people who commit to working on an idea and, ultimately, toward a scalable business model. This means that even as the idea may change (and it often does), the people will hopefully remain consistent.

As an entrepreneur, you’ll find the most benefit in perfecting the art of selling yourself to the investors in whom you are interested. This tactic is harder than just pitching an idea. It requires time and effort to build real relationships. Target the 10 to 20 best investors in your market and get to know them. Before you meet them, read their blog posts and tweets. Figure out what they care about, what they value, and why. Find points of overlap in your networks and use those to both build context about them and exchange a warm introduction.

 

Then, once you meet them, use the time to earn the right to get more of their time. Get that next meeting. Remember, this is hopefully the start of a multi-year career of the two of you working together, so treat it as such. Find things that interest them, and follow up on those things. Show them why you’re passionate and what drew you to this great idea. Be professionally persistent and relentless in your follow-ups.

There are lots of truisms in the entrepreneurial community like, “If you want advice, ask for money. If you want money, ask for advice,” and, “Investors want lines, not dots.” These all stem from the same fundamental idea that the relationship with the investor is far more important than the idea.

If you build a relationship on a human level rather than on a transactional level, investors just might start to care about you. As they come to care about you, they’re likely to translate that human interest into an interest in what you’re devoting your energy to, and how they might get involved. At that point, getting them to invest becomes much more pleasant—and more likely. It may seem like an obvious approach, but following that golden rule that your mother hammered into your head is key. When you treat investors as human beings, you’ll see the same treatment in return.

Erik Severinghaus is the founder and CEO of SimpleRelevance, which uses machine learning to turn customer data into recommendations for relevant digital marketing messages and was recently acquired by Rise Interactive. Erik is a graduate of Kellogg School of Management at Northwestern University.

About the Authors
By Erik Severinghaus
See full bioRight Arrow Button Icon
By Bethany Cianciolo
See full bioRight Arrow Button Icon

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

tim
CommentaryAirline industry
Merlin CTO: autonomy can rebuild the foundation of aviation — and national security
By Tim BurnsJune 9, 2026
1 day ago
dewar
CommentaryLeadership
I founded McKinsey’s CEO practice: Here’s why operational excellence is a liability right now
By Carolyn DewarJune 9, 2026
1 day ago
250
Commentary250 Years of Innovation
America turns 250. Its greatest innovation was never a product — it was a system that let anyone build one
By Keith KrachJune 7, 2026
3 days ago
sabes
CommentaryRetirement
Retiring at 62 costs the average American $250,000. Here’s the math (and the neuroscience) that explain why
By Jon SabesJune 7, 2026
3 days ago
da
CommentaryIPOs
The short seller’s argument nobody on the coming mega IPO roadshow wants you to make
By Bhaskar ChakravortiJune 7, 2026
3 days ago
bs
CommentaryCalifornia
I’ve sold property on California’s Central Coast for decades. The buyers chasing ranch and winery estates are after more than a lifestyle
By Lindsey HarnJune 6, 2026
4 days ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
2 days ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
1 day ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
Current price of oil as of June 9, 2026
Personal Finance
Current price of oil as of June 9, 2026
By Joseph HostetlerJune 9, 2026
1 day ago
Current price of silver as of Tuesday, June 9, 2026
Personal Finance
Current price of silver as of Tuesday, June 9, 2026
By Joseph HostetlerJune 9, 2026
1 day ago
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
Investing
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
By Eva RoytburgJune 9, 2026
19 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.