Raising a round of funding is no easy task. There’s a lot to worry about and a lot to prepare for. Your pitch deck needs editing (again), there’s always one more networking event to attend, and you still need to prepare answers to tricky questions about your business.
You also need to land meetings with investors. That’s easier said than done, especially if you don’t have a strong online presence.
Consider this: 65% of internet users see online search as the most trusted source of information about people and companies. (That’s a higher level of trust than any other online or offline source.)
I polled dozens of top investors on their online search habits as they are deciding to take meetings with business owners. Some simply peruse LinkedIn and Google’s page-1 results for a quick first impression; others go much deeper, reading thought leadership articles, scanning social media profiles, and previewing news articles to get a more comprehensive view.
Among the wide range of answers, one thing became absolutely clear: entrepreneurs and founders with authentic and impressive online presences will find it much easier to land investor meetings than those without.
I’ve compiled answers below from eight top investors to use as reference when it comes time to raise funding for your own business. If your online presence needs improvement, you’ll want to review this entrepreneur’s guide to online reputation management and this comprehensive guide to personal branding.
James Joaquin
James Joaquin is the co-Founder and Managing Director at Obvious Ventures. James has been working in venture capital since 2007 and has invested in a wide range of mission-driven startups including Plum Organics (acquired by Campbell’s Soup), TenMarks Education (acquired by Amazon), and Opower (IPO April 2014).
How often do you look businesses and business owners up online? And at what point in the process?
Joaquin: Every minute of every day we're looking up businesses online. The triggers are either to gain more information on a company that has contacted us, or to research leading companies in a business and/or tech area that we're focused on.
What things specifically do you look for? Both good and bad?
Joaquin: We look at a number of factors, including:
- Background of the team.
- Their points of view or thought-leadership pieces published online, at places like Medium.
- Products, customers and accomplishments of the business. If the company has already launched a consumer product, we look online for consumer sentiment and reviews (places like Amazon, Instagram, Facebook, and Twitter).
- Which firms and individuals have previously invested.
How deep of a search do you typically do? Are we talking just Page 1 of Google? Page 3 and social channels?
Joaquin: In addition to the points above, we use LinkedIn as an efficient way to better understand both current and former employees of the company.
What kinds of things have impressed you to the point of definitely wanting to continue the conversation? On the flip side, what kinds of things have been an immediate turn off?
Joaquin: We look for passionate, purpose-driven teams that are reimagining industries in a world positive way. When we find the intersection of profit and purpose, that excites us. A clear lack of authenticity is a turnoff.
Nitesh Banta
Nitesh Banta is an angel investor and the CEO of B12. Nitesh previously co-founded Rough Draft Ventures and was an investor at General Catalyst. He’s invested in dozens of companies including Handy, Boxed, Grammarly, and Mark43.
How often do you look businesses and business owners up online? And at what point in the process?
Banta: I always look up businesses and entrepreneurs before meeting them. I generally do this before accepting a meeting and again before an initial meeting or call. If I end up doing subsequent meetings or diligence I will do an even deeper search online.
Looking up an entrepreneur is a key part of my job as an investor to ensure I am prepared and using an entrepreneur’s time wisely. I would hate to use meeting time asking questions I could clearly answer by spending a few minutes doing research online.
What things specifically do you look for? Both good and bad?
Banta: Initially, I look at the website of the business. I want to understand how the owner positions the business and how far along the company is in terms of team development, customers and product.
I also look up the LinkedIn and personal website of the founders to understand their experience and any mutual connections we might have. Next I will look up their Crunchbase or Angel.co profiles to get a sense of funding history. Finally, I may quickly browse something like Google news to see if there is recent press.
As I evaluate an investment further, I will more diligently look up competitors in the space, reviews from customers and employees and press about the company and founder to ensure there are no warning signs that might make this a bad investment.
How deep of a search do you typically do? Are we talking just Page 1 of Google? Page 3 and social channels?
Banta: My searches get deeper as I go further in the investment process. Before a first meeting I check out the key web presences mentioned above and I will rarely get beyond the first page on Google or initial postings on social. As I get closer to an investment, I will go deeper to make sure the story I hear from an entrepreneur is consistent with reality.
What kinds of things have impressed you to the point of definitely wanting to continue the conversation? On the flip side, what kinds of things have been an immediate turn off?
Banta: A well-designed website that makes a product stand out goes a long way. In addition, the type of people involved with the company (team members, investors, advisors and customers) provide social proof that the company has momentum. Finally, I want to feel like there is a compelling founder narrative to give me an understanding of why a founder is uniquely able to solve the problem they are going after.
Having a really bad product trial experience can be a big turn off. Similarly negative customer reviews or employee reviews are generally a bad sign. Finally, if the overall narrative of the company or founder seems undifferentiated, I would be less excited to take a meeting.
Anything else you'd be willing to share about that process?
Banta: Looking up a business online is a really efficient way to make sure you are taking the right meetings and making the most of those meetings. I am confident I can do initial online research in under 10 minutes, which makes a world of difference when vetting an opportunity.
Sue Heilbronner
Sue Heilbronner is the co-founder and CEO of MergeLane, the investment fund focused on companies with at least one female in leadership. MergeLane has made 37 investments since 2014, including Havenly, Mapistry, Pana, Shinesty, and TomboyX.
How often do you look businesses and business owners up online? And at what point in the process?
Heilbronner: I always look up business owners and founders online, whether they are looking for potential investment, a connection to me, or a meeting. My first due diligence step is LinkedIn.
What things specifically do you look for? Both good and bad?
Heilbronner: If I’m focused on investment possibilities, I am first and foremost looking for indicators that the person has been a superstar in other places in her life. This can show up as educational reputation, honors received in school, promotions received in prior roles, or success in a previous startup. The indicators vary with age, but I’m essentially asking myself “has this person totally shot the lights off in her life?”
I don’t know that there’s much “negative” I’m looking for. Extreme job hopping might be an indicator of someone who might bail on a company if the going gets tough. I pay attention to poor writing, syntax, and sub-par communication skills.
Lastly, I will say that I also am running a personal filter that is something like “would this person be interesting to me?” That’s not the ultimate filter for an investment, of course, but it might be an initial filter to lead me to put my attention on a person or a company.
How deep of a search do you typically do? Are we talking just Page 1 of Google? Page 3 and social channels?
Heilbronner: LinkedIn gets a full background review. If someone is especially interesting, Page 1 of Google and Twitter.
What kinds of things have impressed you to the point of definitely wanting to continue the conversation? On the flip side, what kinds of things have been an immediate turn off?
I end up looking up a lot of people who are earlier in their careers because as a part of my fund I focus more on startups and founders than I do, say, on fundraising (my partner handles that). I am attracted to people at this stage who have created opportunities, whatever that means. Perhaps they’ve chosen an unlikely path, or they’ve been in the Peace Corps or AmeriCorps in combination with being at the top of their college class.
I also love working with athletes. It’s not critical that someone be a Division 1 collegiate athlete, although that’s fun to see. I just like people who “get” sports and competition. I think sports breed competitiveness and tenacity, and these are key success indicators in my book for building a great company and a great career.
Lauren Jupiter
Lauren Jupiter is a Co-Founder and Managing Partner of AccelFoods, an investor in disruptive food and beverage companies, backing its portfolio brands with industry access, expertise, and infrastructure. AccelFoods has invested in over 30 innovative brands, including Aloe Gloe, Four Sigmatic, and Kidfresh.
How often do you look businesses and business owners up online? And at what point in the process?
Jupiter: One of the first things we do when considering making an investment in a company is to check out the company’s website. Websites provide a glimpse into everything from a company’s brand identity and engagement with consumers, to how management prioritizes various channels of trade.
We always perform a full background check on brand founders with every transaction. Because we typically partner with early stage brands, we are investing in founders and management teams just as much as we are investing in companies, so we need to do our due diligence in researching people behind a brand, not just financial and legal info. One of the first steps of this diligence process is performing a Google search on the founder(s) and/or management and reviewing their social media presence, like LinkedIn.
What things specifically do you look for? Both good and bad?
Jupiter: When it comes to the brand, we would hope that, even if the company is small, it has a solid online presence and can be easily found in an online search. We like to see companies building an authentic brand and fostering a digital community of brand loyalists based on strong online content. We also want to make sure that what the brand stands for is aligned with AccelFoods’ own values as a brand.
In the early days, it can be very hard to separate a brand from its founder. A founder’s personal brand can be an extremely positive asset in building a company brand, as it can help reinforce the authenticity and passion that is so important to consumers today.
That being said, we also want to make sure there are no red flags, with either the brand founders or the company itself. Bad press, litigation, or poor business track records (reputation) can be challenging, particularly when we are just getting to know someone. We expect our entrepreneurs to exemplify the highest standard of professionalism and quality and that starts long before our investment.
How deep of a search do you typically do? Are we talking just Page 1 of Google? Page 3 and social channels?
Jupiter: A quick Google search, especially the “News” results, can be very revealing. When it comes to the founders, how they portray themselves publicly and their own personal brand can have an impact on their likelihood for investment, be it from AccelFoods or other investors down the road. In the same way that a potential employee would put their best foot forward on social media, an entrepreneur seeking capital should too.
Instagram, Twitter, and Facebook are incredibly powerful tools to connect with consumers. Brands with a high number of followers, but little engagement, such as comments or likes, can come across as less authentic than brands with fewer followers but higher levels of engagement. We look for quality, not quantity, when evaluating a brand’s online presence the same way we do when we evaluate a brand’s retail footprint.
What kinds of things have impressed you to the point of definitely wanting to continue the conversation? On the flip side, what kinds of things have been an immediate turn off?
Jupiter: Early-stage brands need to be good storytellers. Having an engaging website that clearly states what the product is, its differentiation, and how it fits with your lifestyle is key for Millennial consumers.
We love seeing high quality content and engagement with followers, particularly for products with unique ingredient profiles or go-to-market strategies that require more consumer education than your typical consumer brand might.
Anything else you'd be willing to share about that process?
Amazon can also be incredibly useful when gauging product and company quality. Scrolling through reviews offers an insightful look into a consumer’s experience with a brand and its product.
Kyle Nakatsuji
Kyle Nakatsuji is the co-founder and CEO of Clearcover, a new data-driven auto insurance startup. Previously, he co-founded the VC team at American Family Insurance, where he and his team invested in promising startups at the intersection of technology and risk management including Ring, Life360 and Revolv (acquired by Google).
How often do you look businesses and business owners up online? And at what point in the process?
Nakatsuji: Early and often. Venture capitalists typically start looking at businesses' and business owners' online presence before the first meeting to prepare, and continue to do so throughout the entire process, as they learn more about the networks of people and companies surrounding the company they're evaluating.
What things specifically do you look for? Both good and bad?
Nakatsuji: When I was on the VC team at American Family Insurance, the biggest thing I looked for was data to back up the overall thesis behind the investment. For instance, finding out that a founder had less experience in data science than you initially thought might seem bad. However, if your overall thesis on the business didn't hinge on the founder having an extensive knowledge of data science, then it's not necessarily considered good or bad -- it's just data, which is never a bad thing to have a lot of when looking to potentially invest in a company.
How deep of a search do you typically do? Are we talking just Page 1 of Google? Page 3 and social channels?
Nakatsuji: As a VC, I usually looked at Google results and LinkedIn profiles before meeting with founders. If they're technical, I also made sure I looked at GitHub, too. During the entire process, I spent time looking at both the business I was considering investing in and their competitors, employees and former employees.
What kinds of things have impressed you to the point of definitely wanting to continue the conversation? On the flip side, what kinds of things have been an immediate turn off?
Nakatsuji: I was always impressed by founders that had a history of study or analysis of the area they're trying to fix because it shows they were committed to the problem in a deeper way, and that it wasn't just a "spur of the moment" opportunity for them. For me, an immediate turnoff was finding facts or evidence that directly contradict what a founder stated in the past. For instance, if the work they did at a prior employer didn't align with the work they were doing and trying to do at their startup, that was a red flag for me. There's a big difference between a debatable hypothesis and misrepresentation.
Gil Beyda
Gil Beyda is the Managing Director of Comcast Ventures, the VC affiliate of Comcast Corporation. He has invested in B2B startups including Demdex (acquired by Adobe) and Divide and Invite Media (both acquired by Google).
How often do you look businesses and business owners up online? And at what point in the process?
Beyda: I always look up entrepreneurs online before meeting them. I start with LinkedIn to see their background and then try to find places where they might blog, like Medium.
What things specifically do you look for? Both good and bad?
Beyda: I look for their qualifications and experience. Plus, I like to see that they are visionaries who have built networks over their careers.
How deep of a search do you typically do? Are we talking just Page 1 of Google? Page 3 and social channels?
Beyda: Initially I'll just do a cursory search, but as we enter into the diligence phase for a potential investment, we'll go deep and try to find anything and everything that is out there -- hopefully not finding anything that might question the character of the founding team.
What kinds of things have impressed you to the point of definitely wanting to continue the conversation? On the flip side, what kinds of things have been an immediate turn off?
Beyda: We are impressed if an entrepreneur has a long history of blogging and offering important insights into various areas of professional interest. Thought leadership is important.
Anything else you'd be willing to share about that process?
Beyda: If we decide to invest in a company, we'll also do background checks on key members of the team. Nobody's background is perfect, but we would like not to be surprised.
Jeff (J.D.) Davids
Jeff (J.D.) Davids has completed over $1 billion dollars of investment deals including angel investments, venture capital deals, corporate ventures, acquisitions & IPOs. He has served on the management teams of 8 VC-backed startups with 6 successful exits, and produces and hosts a series of expert videos, workshops and programs entitled SmartMoney Startups.
How often do you look businesses and business owners up online? And at what point in the process?
Davids: We search companies and executives online 100% of the time.
What things specifically do you look for? Both good and bad?
Davids: We do an initial screen before we agree to take a meeting. We save ourselves a lot of time by not taking meetings with people whose online profiles do not demonstrate active forward progress of the company. We filter out a big chunk of people who never get a meeting because their online profiles did not reflect that they had industry-leading technology and/or solutions with a "tribe" of supporters engaging with them online.
No tribe, no progress, no investment, no meeting.
How deep of a search do you typically do? Are we talking just Page 1 of Google? Page 3 and social channels?
Davids: We scrub profiles in the following order:
- Company website with Team Page: This is the #1 place to see if they have a solid team that is well respected in the industry. If they only list the CEO, that's a red flag because they aren't sharing credit with anyone else. Easy to eliminate those.
- LinkedIn: We look at the profiles of the management team, the company, and any advisors. I look to see how many articles they have posted (an indicator of being a thought leader), and if they have any recommendations from colleagues.
- AngelList & Crunchbase: Do I recognize the names of anyone affiliated with the company? Do they have a good reputation in the industry, and do I know them? If I see a profile with just the CEO and a company profile and no other connections, they either aren't building a tribe of supporters, or they aren't plugged in to them online. Either way, the CEO needs to be creating a "movement" that will attract people to support the company and rapid adoption of its products and services.
- Google Search: I Google search someone's name to see if they are being written about in the press and to ensure that they don't have a troubled past.
What kinds of things have impressed you to the point of definitely wanting to continue the conversation? On the flip side, what kinds of things have been an immediate turn off?
Davids: If the founders are connected to someone I know who has a good reputation -- as an investor, an advisor, or any other role in support of the company -- this indicates that they have "social capital." You don't have to be "in the club," but if you have made positive contact with someone with a good reputation in the startup circles that I travel with, that elevates you from an "unknown entity" to a "somewhat known entity." I can easily call that person and ask a couple of quick questions to get a good gut check.
What turns me off is people that list 15 patents and how amazingly brilliant they are but no-one is connected to them. A company webpage where the CEO is the only one listed indicates that the culture there is not optimized for collaborative team work.
Dennis Joyce
Dennis Joyce is an investor across multiple asset classes including commercial real estate, equities, and various alternative investments. He is an active member of Seattle’s Alliance of Angels and Puget Sound Venture Club and sits on the screening committee of both groups. His angel investments include Ripl, Blokable, Visual Vocal, Bluhaptics, and CityBldr.
How often do you look businesses and business owners up online? And at what point in the process?
Joyce: I look up businesses and business owners 100% of the time during due diligence on a deal. I don’t have time to search on every pitch I hear, but if I am at all intrigued and would like to continue a relationship with a founder, I will be connecting via LinkedIn, Twitter, FB and every other format to stay close. I’m your new best friend.
What things specifically do you look for? Both good and bad?
I want to know things like “what is your art,” or “what is your hook,” or “what is your angle.” I’m trying to determine what a future leader is bringing to the world that it desperately needs. I’m looking for that “it” factor.
I look for how many followers they have and how consistent they are with their message. I want to see how committed they are to this business. I want to know the depth of their domain expertise. I try to get an idea of the character of a founder and the circles in which they travel. It’s good to see a future thought leader express themselves in places like Twitter and on LinkedIn and Facebook. A founder needs to balance having a strong voice but must also be focused online. The best founders express their character in their work, but do not let it get out of hand.
How deep of a search do you typically do? Are we talking just Page 1 of Google? Page 3 and social channels?
I will follow on Twitter and LinkedIn. I try to dig into Google and see if there are news articles and will go even deeper and try to read anything I can find, even old blog posts. I will subscribe to YouTube and Facebook channels. I am a huge believer in marketing through these channels and I want to see how well a company is growing their audience in these arenas.
If the founder has an online hobby (like a mixtape DJ or geek stuff) I will try to delve into that deeper. At the end of it all, I am about to begin what is hopefully a long-term relationship with another person and their company, so I need to learn as much as I can about this person and the team.
What kinds of things have impressed you to the point of definitely wanting to continue the conversation? On the flip side, what kinds of things have been an immediate turn off?
Hard question. Of the thousands of pieces of information I am digesting, it is hard to determine things that are turn-ons. I will say a founder’s ability to self-promote and generate interest, get press, attract followers on Facebook or YouTube are the most impressive. That signals to me the founder has the ability to stand up and represent a product or company. I also try to get a sense of how a founder reacts to criticism and rejection because that comes with the territory and needs to be managed.
A turn-off for me is a particularly heavy-handed affiliation to one cause or another that interferes with the product one is selling. We are all guilty of turning others off from time to time, but it is very important for founders to show class and dignity.
Another turnoff is being boring. If I wanted to read a person’s boring tweets about their latest Uber ride, I’d follow more VCs on Twitter. That’s why they are VCs and not founders. Be yourself and be interesting.
Anything else you'd be willing to share about that process?
When I invest in a founding team or a product I am building a multi-year relationship with them. They are becoming part of my family. It is way more spiritual than most people think. People need to be thoughtful about how they portray themselves online. It is important to be the best version of themselves whenever possible.
Originally published on Forbes.
Ryan Erskine is a Senior Brand Strategist at BrandYourself, where he helps people take control of their online presence. Visit his website, follow him on Twitter, and read his book here.