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Just like a guy or a girl who’s on a dating spree to find their dream match, getting worried about the kind life partner that he/she will end up choosing, entrepreneurs face the heat when looking out for the right investors for their dream startup.

While choosing a life partner is a big decision, looking for the right investor requires even greater consideration, given the huge stakes involved. Here are some mistakes to avoid when on the lookout for an investor, since incompatibility on any front can do more damage than good to your startup.

After all, if you have a long-term and memorable relationship in mind, you can’t take an impulsive decision and rush into things with the first investor who comes along simply because you feel you’ve ‘hit the jackpot’.

Don’t rush to get engaged

You can’t just fall in love with anyone who comes your way, or can you? A similar situation could arise with a startup because let’s face it, finding an investor is no cake walk. So when you finally find someone who shows even a little interest in your business, you just want things to quickly fall into place so you can sign the papers and seal the deal. But that may not be the best thing for your business.

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Just like you look for certain qualities when looking for a partner, you should have a checklist in place when looking for an investor as well. It’s not just about getting the money, but finding someone who can help add value to your business as well. It’s about getting money with expertise. Moreover, it is your ‘chemistry’ or rapport that’ll decide how far you can sail together.

Don’t take each other for granted

You must have heard about the “Hot Girl Syndrome” – the girl who knows that no boy will ever break up with her because she is hot and therefore she continuously keeps pushing the boundary for the guy thinking he’s not going to walk away. Investors can sometimes be like this ‘Hot Girl’, knowing that it’ll be difficult for you to walk away since they are the ones waddling the cash.

You should remember that an investor-startup relationship is a two way relationship and while the investor gets a say and a stake in the business, it doesn’t mean that they control the business and you simply follow every word they say. They need to understand their boundaries and to give you your space so you can breathe easy and bring out your true potential.  If your idea is good, you have just as much leverage as they do.

Avoid letting ego come in the way

Everyone has an ego but you must have heard the famous quote, “Ego is the only requirement to destroy any relationship.” So, be wary of your ego and how it is projected and communicated.

There’s a fine line between making a point and arguing for pride. Also, if you don’t click with the ‘guy’ who looked hot and handsome, don’t panic. Regain your calm and get back to business. There is no dearth of attention for bright ideas.


Until you find a perfect match, where both you and the investor find a connect and have a common vision for the start-up, focus on building a strong foundation for the business and don’t feel dejected because when the right ‘suitor’ comes along, you know you can create magic together.

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