What founders should ask before accepting an investor introduction

Ask if this investor fits this round

Ask what stage the investor backs now. Ask the usual cheque range. Ask which sectors and places they cover. Ask if they are making new deals now.

Ask what a good next step means to them. They may take one call. They may lead a round. They may join later. A warm link is not a choice.

The SEC says to check stage, usual amount, field, and useful help. It also says investors may want a board seat. [1]

• What stage and cheque range do you back?
• What makes this company fit your current focus?
• Who would join the first call?
• Can you support this market after a deal?
• What would make you pass early?

Ask who will take the meeting

Ask for the firm or fund name. Ask the person's job and public site. Ask if they use a fund, a family office, or their own money.

Ask who can decide. Ask if a close backed firm or other link could matter. State your own known clash too. Do not ask for private deal facts.

A job check can help you plan. It cannot prove wealth, power, or aim. Treat each answer as a start for a fair first talk.

• What is your role in this investment?
• Who else will see the company note?
• Who makes the final decision?
• Do you have a close portfolio overlap?
• What can you share about your process?

Ask how the introduction will work

Ask the introducer why they see a fit. Ask what they plan to say about you. Correct a wrong fact before the note goes out.

Ask if the linker will get a fee, carry, or other gain if a deal closes. In the United States, finding investors and deal-linked pay can mean broker-dealer rules apply. [2] Rules change by place. Get expert advice for your case.

Keep shared data small. ICO says data must fit the use and stay limited to what is needed. [3] Ask before you share a phone number, a client contact, or a private file.

• Why do you think this is a fit?
• What facts will you include in the note?
• Who will receive the note and deck?
• Is any payment linked to a close?
• What contact details or files are needed now?

Ask what the first step needs

Ask if the first step is a short call, a pitch, or a review. Ask who will join. Ask how long it will run. Ask what they need first.

Send a short, current pack unless you both agree on more. Label a forecast as a forecast. Keep a pilot, a signed deal, and cash received apart.

In the United States, anti-fraud rules also apply to exempt deals. The SEC says a company is on the hook for false or unclear claims. This covers speech and writing by the firm or its agent. [4] Rules change by place. Get expert advice for your raise.

Later checks may need firm, money, IP, share, and key deal files. YC lists these in its Series A checklist. [5] Share them only when needed, with the right access.

• What is the purpose of the first call?
• Which people will attend?
• What short material is useful now?
• What information should wait for later checks?
• What is the next decision and date?

Choose make, pause, or pass

Make the link when the basic fit, people, and aim are clear. Keep a short note on what was shared and who got it.

Pause when a key answer is missing. A pause can protect time and private data. It is not an accusation.

Pass when the stage, cheque, focus, or process does not fit. Thank the introducer. Give a short reason if you can. A clear no is better than a forced meeting.

• Make: fit and first purpose are clear.
• Pause: a key fact, role, or use is unclear.
• Pass: the basic fit is not there.
• Record: note the date, people, and shared items.