In private market investing, growth is often as much about who you know as what you know. Over 70% of venture deals come from investor networks rather than cold outreach.[1] Building strong relationships with startup founders, fellow investors, and industry professionals can open the door to investment opportunities and strategic partnerships. But with so many networking events, online communities, and investment forums available, how can investors make the most of their time? In this blog, learn more about networking tips for investors, networking and pitch events, and who investors may want to connect with to build long-term relationships.
Networking Tips for Investors
Maximizing Your Time Networking
Time is a valuable resource for investors, so they may want to consider intentional networking to maximize their ability to make meaningful connections. Here are some ways to help maximize meaningful connections: [2]
Set Networking Goals
Before attending an event, investors should set clear objectives. You may want to ask yourself, are you looking for early-stage startups to invest in? Do you want to connect with other investors for co-investment opportunities? If you are an investor that knows your goals, you can help focus your time efficiently.
Quality Over Quantity
Collecting hundreds of business cards won’t guarantee strong connections. Instead, investors may want to aim for a few in-depth conversations with people who may be able to help connect them with other investors or startup founders in specific industries. A handful of meaningful relationships can lead to better deal flow than dozens of surface-level interactions.
Follow Up and Stay Engaged
One of the keys to long-term networking growth and success is follow-through. A well-timed email, LinkedIn message, or even an invitation to a follow-up meeting can transform a brief introduction into a lasting relationship.
Networking isn’t just about what you can gain—it’s also about what you can offer. Whether it’s sharing insights on market trends, offering introductions, or providing feedback, being helpful can make memorable and valuable connections.
Who Should You Be Connecting With?
Benefits of Networking with Startup Founders
Meeting startup founders can give investors early access to investment opportunities, allowing investors to participate in potential promising companies before the startups gain traction. Engaging with founders also can provide insight into emerging trends, technologies, and market shifts.
Advantages of Connecting with Other Investors
Fellow investors can be invaluable partners, whether through syndicate investing, co-investment opportunities, or sharing due diligence insights. Investors with complementary expertise can provide guidance on sectors or markets that other investors may be less familiar with, helping to create an advantage for investors.
Finding the Right Balance
Effective investors can maintain a diverse network that includes both startups and fellow investors. This could help ensure a steady flow of deals while also providing a trusted group of peers to collaborate with on future investments.
Networking and Pitch Events
There are so many different kinds of networking events these days and the amount can sometimes be overwhelming. Investors should do some research to figure out which events best fit their investing goals and strategies. Here are some events that investors may want to consider:[3]
Startup Pitch Events & Demo Days
Events like Y Combinator’s Demo Day, Techstars showcases, or even local events can provide direct access to early-stage startups. These can be great opportunities to meet founders, assess their vision, and make early-stage investments.
Investor Conferences and Summits
Large-scale investor events such as the Impact Investor Global Summit[4] or SuperReturn North America[5] can offer access to top investors, thought leaders, and founders. These events may provide valuable insights into market trends and opportunities to network with a broad range of industry professionals.
Industry-Specific Events
If investors have a particular focus, attending industry events, such as Fintech or healthcare innovation summits, can help them connect with experts, startups, and even other investors who may be specializing in those sectors.
Online Investment Communities
While in-person networking events are invaluable, social media has become a tool for investors looking to build relationships, stay updated on market trends, and discover new investment opportunities. Engaging strategically on platforms like LinkedIn, X (formerly Twitter), and online investor communities can help investors establish credibility and attract relevant connections.
LinkedIn is the go-to platform for professional networking, and as an investor, your profile should showcase your expertise and investment focus. You may want to optimize your profile with a well-written bio and a strong summary section so that others may be able to clearly understand your investment goals.
X (formerly Twitter)
X (formerly Twitter) is a platform for investors, venture capitalists, and angel investors sharing real-time insights, industry trends, and startup news. In order to optimize networking opportunities, you may want to follow key players in the industry, post regularly about insights and trends, and engage in discussions on the platform.
Podcasts and Content Creators
Many startup and VC-focused podcasts and newsletters share exclusive insights, and engaging with their content can lead to networking opportunities. You may want to reply to podcast hosts or newsletter writers on social media with their thoughts; the hosts may appreciate engaged listeners, and this could lead to some potential networking down the line.
Additionally, there could be investors who host live streams on their accounts where other investors can take the opportunity to network with each other and the hosts for potential investment opportunities.
Final Thoughts
Effective networking is about building relationships and providing value before expecting something in return. Whether you’re connecting with startup founders, fellow investors, or industry experts, consistency can be key. A well-maintained network can open the door to investment opportunities that may not be available otherwise. No investor or startup can be successful on their own without networking, so while startups are perfecting their skills, investors should be doing the same.
Want to learn more about tips for investors in the private market? Check out the following blogs to learn more:
- Venture Capital Pros and Cons
- Fluff or Fit? Evaluating A Startup’s Pitch
- Regulation Crowdfunding: Empowering the Next Generation of Investors
- Investing in Secondaries: A Guide for Private Market Investors
Are you looking to invest in startups? Sign up for a MicroVentures account to start investing!
[1] https://www.4degrees.ai/blog/how-venture-capital-firms-can-improve-deal-sourcing
[2] https://www.everclearmarketing.com/blog/5-essential-tips-for-networking-with-vcs-and-investors
[3] https://www.linkedin.com/advice/1/what-do-you-want-build-strong-network-venture-capital-uvbne
[4] https://www.peievents.com/en/event/impact-investor-global-summit/
[5] https://www.sourcecodeals.com/blog/best-private-equity-conferences
*****
The information presented here is for general informational purposes only and is not intended to be, nor should it be construed or used as, comprehensive offering documentation for any security, investment, tax or legal advice, a recommendation, or an offer to sell, or a solicitation of an offer to buy, an interest, directly or indirectly, in any company. Investing in both early-stage and later-stage companies carries a high degree of risk. A loss of an investor’s entire investment is possible, and no profit may be realized. Investors should be aware that these types of investments are illiquid and should anticipate holding until an exit occurs.