• 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
CommentaryEntrepreneurs

This Is What Happens When You’re Not Honest With Investors

By
Jason Cohen
Jason Cohen
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
By
Jason Cohen
Jason Cohen
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
April 26, 2016, 11:03 AM ET
Businessman looking out conference room window at cityscape
Businessman looking out conference room window at cityscapePhotograph by Chris Ryan via Getty Images

The Entrepreneur Insiders 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 for young startup owners to develop relationships with angel investors?” is written by Jason Cohen, founder and CTO of WP Engine.

As an angel investor, a repeat entrepreneur, and someone who’s raised money from a dozen angels, I’ve learned that developing relationships and standing out from the crowd are critical so you, too, can secure that angel financing.

Great angel investors are few and far between—most are faking the part. The genuinely good ones are well-known, and as a result are overwhelmed with founders asking for meetings and investment. It’s your job to stand out from the crowd. And that’s hard, especially when your company is new and unproven.

The first step to stand out from the crowd is to get noticed in the first place. Here you have the double-edged sword of social media at your disposal. The good news is: You have a direct connection to everyone. The bad news is: So does everyone else.

To stand out, it’s imperative to be helpful. Being helpful can mean bringing a new idea to the discussion (not just a plus-one parrot), or it can mean noticing someone’s area of interest and bringing information about that area to his or her attention. It can also mean making the comments section of his or her blog more valuable by adding a new or unique perspective, whether it’s contrarian or expands upon the main point of the post. Additionally, linking to someone’s article from your own, wherever it’s published, and letting him or her know that you’re publicly assisting can be a big help. You’ve heard to give before you get—this is the social media version of that. Almost no one “gives,” so if you do, and with quality, you will stand out.

Once you become known to the angel, at least online, it’s appropriate and normal for you to reach out, either by emailing or with a direct message on social media (if you’ve been helpful enough that he or she has followed your account).

Now that you’ve gotten noticed, the second step of standing out from the crowd is focusing on how you behave once you’ve earned that first meeting.

Realize this: Most people are disingenuous when talking about their businesses, especially when talking to investors. They want to look impressive, so they exaggerate. They want to look in command, so they speak with presumptuous authority on subjects they’ve only recently learned about, still so novice that they don’t even realize just how ignorant they still are. This is exactly the wrong tack, and if you tack the other way, it’s the solution to the puzzle.

 

People with experience, like great angel investors, can see right through all of that. At best they’ll see you as ignorant, at worst they’ll see you as a liar. Moreover, you’ve shot yourself in the foot by starting a relationship disingenuously. Like all relationships, the best ones are where you are your true, honest self, together with your worries and fears and anxiety. It’s okay to show vulnerability. Open with the challenges of your company, which for small companies often amounts to “all of it.”

By forcing yourself to be vulnerable, you have a shot at a genuine relationship. And because it’s rare for people to be honest about things that are embarrassing or difficult, you’re automatically distinguished from the crowd. As a bonus, it’s now clear to the angel exactly how he or she can be helpful to you beyond writing a check, and being helpful is a wonderful feeling. This approach also shows that you are open to growth and discussion, and that’s the kind of relationship that investors find worthwhile.

It might not work, of course. Maybe the angel will think you’re weak, or dumb, or incompetent, or lacking in conviction. But that’s wrong. If the investor can’t understand and accept the truth when the truth is told, that’s not a “partner” you want in your corner anyway. So it’s okay if it doesn’t work. That’s a filter, too.

It’s better to try it the right way and fail than to coerce the wrong partner to join you through deception. And if you succeed, it might be one of the most influential, important, and helpful strategic moves you’ve ever made.

About the Authors
By Jason Cohen
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
20 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.