A solid one the network of investors is a must for every entrepreneur. These connections can open doors and write checks for you when you need them most. If you get it right, investors can even continue to support you well beyond your current venture. However, mastering investor relations is a complex process.

Of course, there is research that covers the basics of how to make a good one First impressionnailing yours pitch and investor insurance proper fit. However, there are also some hard-learned tips that you will only hear from an insider.

Based on my experience as a founder who generated a 200x return on my first investors, and in my current role as a venture capitalist with over 50 seed investments – I've learned some actionable tips along the way.

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1. Contact investors long before you're ready

Avoid the typical rushed process of raising investors you have never met before in a tight time frame. This creates a transactional feel and gives investors an easy excuse to switch.

You should aim to engage investors in one emotional level, where they're left feeling like they've known you personally from the start. To achieve this, you should contact potential investors earlier than conventional advice suggests, even if your idea seems incomplete. Be sure to communicate that you are not fundraising, but looking to build a relationship before a potential funding.

It may take time to schedule appointments as there is no urgency. However, if you persist in following up, you will have the opportunity to finally meet and have a real conversation rather than a high-pressure voice.

Try to make two new links like this per month. Over time, this will grow into a large network that you can tap into when you need money. When that time comes, it won't even seem like a rushed process and the odds will be more favorable.

During my time as Founder of Vungle, I applied this strategy to several funding rounds. In one case, I had seven competing term sheets for our $17 million Series B financing, and it only took a few text messages to get the first offer.

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2. Do not share good news until it is 100% confirmed.

When meeting investors, be careful to only share numbers you're confident you'll beat. You must under-promise – and over-deliver.

You will often find that some investors have an uncanny ability to remember every detail from previous meetings. Know that investors take notes or upload their thoughts to customer relationship management (CRM) after each meeting.

When I meet entrepreneurs on behalf of my venture capital fund at The capital of the blue field, I have a record of every key fact a founder has ever shared with me. Every now and then I come across a founder who only hypes his business I disappoint below the line. If I notice a repeated pattern of this behavior, it may erode my trust in the founder and I will be less likely to invest. This is exactly what you want to avoid.

It is best to share positive news only when it is confirmed. Don't put yourself in a situation where you have to justify what didn't materialize, like a big client you didn't close or revenue that only grew 50% instead of 75% (when usually 50% is impressive growth ).

Another tip: Be open about the challenges you're facing and ask investors for advice. Later, share how their advice helped overcome obstacles. This approach increases emotional connection and builds trust.

3. Get new investors to raise money for you

Once you've confirmed investors in a funding round, ask for introductions to at least three co-investors they recommend. A caveat: Make sure you have a clear verbal or written commitment beforehand looking for introductions. Otherwise, you risk potential investors not investing, as it only takes one skeptical investor to convince others.

Instead, you want a strong reference that will protect your deal. Investors will see the opportunity as risk free when another investor they respect has already done their due diligence and is 100% committed.

I saw this first hand when I came to Silicon Valley as an expat with almost zero connections in the US, I raised a $2 million round from 30 different investors, mostly based on first investor engagement and introductions.

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4. Keep your end of the investment

Unfortunately, some investors experience radio silence after investing in a company. While they want to give founders room to execute, they also need updates for their investors (yes, VCs also have their own investors, known as LPs).

If you think your investors should update their LPs every quarter, you need to appreciate the importance of your submission. investor updates at least quarterly, if not monthly. Please don't imagine your investors!

You should always provide an official written update, whether you're breaking the news in person or virtually. Always start each update with key metrics like revenue, cash balance and cash track. Ideally, this is presented in an efficient format such as a table or graph.

Don't force investors to work through a long update without first addressing the key items. Otherwise, you risk losing their attention as they will review your presentation for this information regardless.

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When you make life easy for your investors, they will appreciate the way you operate and will likely want to continue working with you. Thus “repeat the founders” or “serial entrepreneurs” expertly raise large sums for their next venture, often regardless of how their last company performed.

Investors make decisions on an emotional level, and by following these insider tips, you can build trust and manage investor relations like a pro.