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

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

3

Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

3

Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire

How to Know You’ve Found a Great Investor

By
Neil Grimmer
Neil Grimmer
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
By
Neil Grimmer
Neil Grimmer
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
July 10, 2016, 11:00 AM ET
169270688
Businessmen talking on city streetPhotograph by Robert Daly via Getty Images
Add Fortune on Google for similar content.

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 “When is the best time to look for investors?” is written by Neil Grimmer, co-founder and chairman of Plum Organics.

Taking money from investors is a lot like getting married. You take their cash and are bound by contract for what might as well be forever. If you accept this analogy, you can think of the question another way: “When is the best time to get married—before or after I’ve dated potential partners?” We all know what the answer is: after you’ve gone through the dating process.

It’s no different with investors. Say you need capital in a year or two. You want to start “dating” investors now, long before you need the money. It’s not the cash that’s key—it’s getting it from the right people. The best partners will help you build your company.

Invite the wrong investors to the table, and it’ll be a disaster, especially if they take a board seat. You’re going to be spending a lot of time with them, so you want your values, style, and ambition to align with theirs. You have to trust and rely on them, and in the best of situations they’ll be your allies and mentors—not just your financial support.

Here are five ways to pressure-test potential investors—before you slip on that ring:

Skills course
Investors will tell you what you want to hear, especially if your company is a hot commodity. They might love your sector and adore your product, but do they really know your business from the inside-out? When we were starting our food business, we met with one of the most respected technology investors on Sand Hill Road. They professed huge interest, but after we spent some time with them, we realized that they didn’t really understand consumer-packaged goods, so we didn’t take their money.

Culture club
Say you’re a nascent outdoor clothing company. If you value the health of consumers, your workers, the integrity of the supply chain, and just plain doing good in the world over the bottom line, then your investors should, too. If your most critical values don’t line up with theirs, then you’ll have a hard time understanding each others’ goals in the relationship.

See also: The Real Reason It’s So Hard for Startups to Find Investors

Meet the family
What are the relatives like? Go out and meet with other entrepreneurs who are already in the portfolio fold. They’ll give you the truth about what it’s like to work with these investors. If they won’t, or you can’t quite find common ground, it’s probably not the investor for you. Ask to meet other partners beyond the one who is leading the investment deal. That’s another good indicator of the culture of the firm and whether it jives with your business.

Tag-team wrestling
At the moment you’re reaching exhaustion, would you tag your investors into your fight? Do they have the intellect, the muscle, and the moxie to help move your business forward during crux moments? Because when it’s all on the line, what you want and need are people beside you in the ring who you trust to fight the good fight.

 

The bar test
Running a business is exhausting and exhilarating, which is why it’s so important to enjoy the people you’re working with. Could you shut down a bar with your investors? Are they the sort of people you want to know, and can get to know? Building a company is not all fun, but it’s certainly more fun with people you like.

The best investors invest in you as a person long before they put cash into your company. You need to invest in them as people, too. So put in the time, make the connections, and get out there—now.

About the Authors
By Neil Grimmer
See full bioRight Arrow Button Icon
By Bethany Cianciolo
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

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

Illustration of a bomb with the Bitcoin logo printed on it, against an orange background.
CryptoCryptocurrency
Bitcoin down 20% since May as Strategy fallout spooks investors
By Camila Grigera NaónJune 26, 2026
1 hour ago
p
EnvironmentParis
The most coveted accessory at Paris Fashion Week was an ice pack
By Thomas Adamson and The Associated PressJune 26, 2026
2 hours ago
z
PoliticsElections
A Brookings paper just accidentally explained Zohran Mamdani
By Nick LichtenbergJune 26, 2026
2 hours ago
fire
Europeclimate change
Greece tackles climate change wildfire risk with satellite network that can spot a blaze the size of a parking space
By Derek Gatopoulos and The Associated PressJune 26, 2026
2 hours ago
The ‘FIFA 15’ is American culinary diplomacy in action
North AmericaFood and drink
The ‘FIFA 15’ is American culinary diplomacy in action
By Catherina GioinoJune 26, 2026
2 hours ago
One chart explains the economy’s terrible baby boomer hangover, Gen X’s invisibility, and millennial and Gen Z irrelevance
Economybaby boomers
One chart explains the economy’s terrible baby boomer hangover, Gen X’s invisibility, and millennial and Gen Z irrelevance
By Tristan BoveJune 26, 2026
3 hours ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
2 days ago
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
3 days ago
Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire
Economy
Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire
By Nick LichtenbergJune 26, 2026
12 hours ago
Trump turns on Big Oil donors who spent nearly $100 million to get him elected—now he wants the DOJ to investigate them for price gouging
Economy
Trump turns on Big Oil donors who spent nearly $100 million to get him elected—now he wants the DOJ to investigate them for price gouging
By Tristan BoveJune 25, 2026
23 hours ago
The bond market knows something about the $39 trillion national debt that Washington doesn’t
Economy
The bond market knows something about the $39 trillion national debt that Washington doesn’t
By Eva RoytburgJune 25, 2026
22 hours ago
Current price of oil as of June 25, 2026
Personal Finance
Current price of oil as of June 25, 2026
By Joseph HostetlerJune 25, 2026
1 day 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.