From the minute you walk into a job interview as a prospective employee, you’re evaluating the employer as much as he or she is evaluating you.
In fact, the best interviews end up as more of a conversation, where both parties are learning about each other.
I’ve found that a good pitch meeting ends up much the same way. And though the value of a good pitch cannot be overstated, there are several things you should look for in a potential investor. Here are four.
Connections – In no other realm of business is the value of networking more apparent than in venture capital. Does your investor have connections with the people who can help your company scale?
Expertise – It’s a flat-out mistake to simply sign on to the investor who offers you the biggest valuation. Instead, ask yourself what expertise they offer and what they bring to the table aside from large amounts of capital.
Specialization – Does the investor or investment firm have significant investments in your space? If so, you don’t have to spend time educating them on the ins and outs of your industry (but you’d better know your stuff when it comes time to answer their questions).
Track Record – At the end of the day, this is the most important factor to look at. How have this firm’s investments fared in the past? A string of successful IPOs or acquisitions is a good sign that they have what it takes to steer you in the right direction.
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Brad is the founder and CEO of BodyShopBids, which provides free online estimates for auto body repair. BodyShopBids launched in June 2011 in Chicago.
