How to Network Your Way to Investors

Our headline understates the scope of this impressive work. The author offers an a-to-z treatment of how to raise capital in a concise do-it-yourself volume. Certainly, strategic networking is an essential component of that process, but we also learn about investor presentations and initial valuations. One take-away from this book is how complex the process of reining in investors can be. Fortunately, the author confidently distills the effort into concise blocks of insight, simplifying the process along the way.

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Crack the Funding Code
How Investors Think and What They Need to Hear to Fund Your Startup
Judy Robinett

Crack the Funding Code is the perfect companion for the startup founder looking to raise angel-sourced capital, as well as the serial entrepreneur needing to brush up on knowledge of the asset-capture business. The book is organized into three primary sections: how to find the right investors, what investors are looking for, and closing the deal. In referencing investors, the author smartly uses the adjective “right” because far too many founders waste their time playing in the wrong sandbox. Chances are that you may fail with the elite venture-capital firms if you are still fine-tuning your out-of-the-gate pitch deck. But you may succeed with the local angel investor club, given the potential for discussion and dialogue with at-hand professionals. Importantly, we learn that raising capital is a process that unfolds over many, many months. Following the measured approach here may compress the effort into a shorter time frame.

Robinett soars with her material on networking, reflecting the success of her earlier work How to Be a Power Connector. A recurring theme is leveraging the strength of your relationships, whether for onward investor referrals or more technical aspects of the startup launch process. In that spirit, Robinett introduces the reader to the work of other gold-collar names in the venture capital industry whose published material can be helpful when a deeper dive is needed. Two examples are John Livesay on investor pitches and Brad Feld on term sheets. She maneuvers through an exclusive neighborhood.

The last section of the book on closing the deal may seem like a distant proposition to those startup founders who are having difficulty even raising capital. Amid the discussion of the term sheet, there lurks an essential truth; you can say “No” to investors when their terms do not align with your own market-validated expectations. Sometimes the adrenalin rush of finding capital overrides common sense. ■

Why Read This Book: Success at raising capital takes more than sending out a pitch deck to a few potential investors. It is a strenuous process that unfolds over many months, taking longer than most expect. The wisdom in this book can help entrepreneurs streamline and accelerate their efforts.

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