Ian<\/strong>: Since there\u2019s generally no absolute right and wrong in startups, I like to think of advice as either \u201chelpful\u201d or \u201cunhelpful.\u201d<\/p>\n\n\n\nI\u2019ve seen a lot of early-stage founders struggle because of unhelpful advice. It’s often well-intentioned, but unless the person giving the advice has direct experience that\u2019s relevant to the startup, they can inadvertently be doing more harm than good.<\/p>\n\n\n\n
I think the best people to give advice to startup founders are other founders, ideally those that have been through the startup cycle at least once themselves.<\/p>\n\n\n\n
The other group of people who can give great advice is early-stage investors. A number of good investors were founders first, so these folks bring an understanding of both sides of the game.<\/p>\n\n\n\n
Generally speaking, the more experienced the founder or investor, the more helpful their advice is going to be.<\/p>\n\n\n\n
I think of an experienced founder as someone who has started, grown, and exited more than one company. It\u2019s great if those founders also have experience of failure. Although I wouldn\u2019t advocate taking advice from someone who has started ten companies that all failed!<\/p>\n\n\n\n
Similarly, I think of an experienced investor as someone who has invested in at least ten companies and been meaningfully involved in helping some of those companies to grow, raise more money, and achieve an exit.<\/p>\n\n\n\n
I get really concerned when I see founders taking advice from a freshly-minted Angel investor who\u2019s made their money in another industry\u2014such as property investing\u2014and thinks they\u2019ll try their hand at Angel investing.<\/p>\n\n\n\n
Colin<\/strong>: Getting advice from an experienced founder or investor sounds like a solid strategy. What about founders in ecosystems that are still maturing? How can they find helpful advice when there are fewer successful founders and experienced investors?<\/p>\n\n\n\nIan<\/strong>: The next best option is to find a great founder who\u2019s still working on making their company successful but whose startup is a few years further advanced than yours. They\u2019ll have a lot of learnings they can share and can probably also connect you with other founders outside your network.<\/p>\n\n\n\nEven better, find and join a structured community of founders who meet regularly to support each other. I\u2019ve found in my work with Innovation Bay that this can be transformational for new founders. It gives you a support network that you can lean on, meet up with regularly and share learnings.<\/p>\n\n\n\n
\nOther founders are also some of the best people to support you as a person, which is vital for your mental health and being able to protect the other relationships you have in your life.<\/p>\n<\/blockquote>\n\n\n\n
Colin<\/strong>: I always think of building your network as an activity that increases your surface area for luck. But there are still a lot of founders who shy away from this, particularly when it comes to building relationships with investors. Sometimes there\u2019s a perception that investors don\u2019t want to hear from you until you’re ready to raise a funding round. Do you have any advice on how to overcome this?<\/p>\n\n\n\nIan<\/strong>: Investors are humans, and almost all investors like meeting founders\u2014even if it\u2019s many months before they\u2019re ready to raise a round.<\/p>\n\n\n\nAs the adage goes: If you want advice, ask for money. If you want money, ask for advice.<\/p>\n\n\n\n
I know a lot of founders who\u2019ve built relationships with investors over a year or more, just by asking them for occasional advice. The investor gets to know the founder, can see how they work, they see that the founder is making progress, and that they\u2019re relentless in their approach. Then, when it comes time for the company to raise money, those same investors are the first ones in.<\/p>\n\n\n\n
Founders shouldn\u2019t underestimate the compounding value of those regular informal discussions with investors.<\/p>\n\n\n\n
The same principle applies more broadly to building your network in your local startup ecosystem. You should be talking to as many people in the ecosystem as possible, whether that\u2019s at events, pitch nights, founder groups, or through more targeted introductions.<\/p>\n\n\n\n
\nNot everyone you meet is going to be helpful, but if you meet enough people, the odds are that some of them will turn out to be incredibly valuable at some point in the future.<\/p>\n<\/blockquote>\n\n\n\n
My advice to founders, particularly those who aren\u2019t naturally outgoing, is to go to lots of events, even if they\u2019re online, tell people what you\u2019re working on, and most importantly tell them what help you need.<\/p>\n\n\n\n
To gain more insights and support on funding and managing your startup, sign up for Microsoft for Startups Founders Hub today<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"Today\u2019s guest post features an interview between Colin Kinner, founder and CEO of Startup Onramp in Brisbane, Australia, and Ian Gardiner, an Investment Partner at early-stage venture capital fund Jelix Ventures. Ian also works with founders through Innovation Bay, a community that supports founders through peer networks. Colin: Ian, I want to start by asking…<\/p>\n","protected":false},"author":1,"featured_media":814,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ms_queue_id":[],"footnotes":""},"categories":[72],"tags":[170,133,121],"coauthors":[623,624,622,625,509],"class_list":["post-546","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fundraising","tag-jelix-ventures","tag-startup-onramp","tag-vc"],"yoast_head":"\n
How to build relationships with investors - Microsoft for Startups Blog<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n