When was the last time you looked at an investor and thought, “Hey, they’re just like me”? Probably never, right? Investors often get pigeonholed as these faceless, number-crunching entities who only care about returns. But here’s the secret: they’re human beings. And just like anyone else, they appreciate genuine relationships. Want to stand out? It’s time to stop treating them like ATMs and start focusing on building authentic connections.

Let’s explore how to build solid relationships with investors that will last beyond the next funding round, and why it matters for your long-term success.

The Transactional Trap

Most companies, especially in the SaaS world, fall into what I like to call the Transactional Trap. It goes like this: You meet an investor, pitch your idea, secure funding, and you’re off to the races. The interaction is purely transactional. It’s a “you scratch my back, I scratch yours” scenario.

While this may work in the short term, it’s a one-dimensional relationship. If you only reach out when you need something—whether it’s more funding, a connection, or just advice—you’re missing the point. Investors want to be more than just your financial crutch; they want to feel involved in your success. A transactional approach limits the potential of your relationship and may ultimately close doors rather than open them.

Why Transactional Relationships Fail in the Long Run

Let’s talk consequences. Investors don’t just invest in products or services; they invest in people. And like any relationship, a transactional one can start to feel disingenuous. Imagine a friend who only calls when they need something. Eventually, you stop picking up the phone, right? The same principle applies to investor relationships.

A transactional approach may lead to disillusionment, where investors feel undervalued or exploited. This can result in more strained communications, fewer favors, and, in some cases, can even jeopardize future funding rounds. If the only time they hear from you is when you need a check, don’t be surprised if that check doesn’t come the next time you ask.

The Human Approach: Investing in Relationships

Instead of viewing investors as cash cows, consider this: they’re individuals with their own goals, fears, and aspirations. In fact, they’re probably more similar to you than you realize. They’ve been through the startup grind, they understand stress, and, most importantly, they’re willing to invest in relationships that go beyond balance sheets.

The key to unlocking a fruitful investor relationship is focusing on the human element. By fostering trust, communication, and genuine care, you can turn your investor into a long-term advocate, partner, and even mentor.

The “Give First” Mentality

One strategy for humanizing your relationship with investors is adopting a give first mentality. Ask yourself, “How can I provide value beyond financial returns?” For example, investors are always looking for opportunities, and you may have access to networks or deals that could be of interest to them. Even if it’s unrelated to your immediate fundraising needs, offering value shows you’re thinking long-term and about their interests, not just your own.

This mentality shifts the relationship from “what can you do for me” to “how can we both succeed?”

Relationship Building 101: Empathy Over Equity

Your ability to show empathy could make or break the connection. This doesn’t mean sending out holiday cards or remembering their birthdays (although, pro tip: do that too). It’s about showing that you understand their needs, not just your own. An empathetic approach means recognizing the unique pressures and goals investors have and aligning your communication and engagement accordingly.

1. Understand Their Investment Philosophy

Not all investors are created equal. Some are risk-takers, others are more conservative. Some want quick returns, others are in it for the long haul. By taking the time to understand what drives their investment decisions, you can align your communication and strategy to their goals.

For instance, if your investor is all about sustainability, you should highlight how your business model aligns with long-term, responsible growth. Conversely, if they’re looking for short-term gains, focus on the near-term metrics and milestones that show progress.

This doesn’t just apply during your initial pitch—it should be a part of your ongoing relationship. As the market evolves, so do investor priorities. Keeping a pulse on their shifting interests helps you remain relevant in their portfolio.

2. Keep Them Informed, Even When You Don’t Have to

Most founders only communicate with investors when they need more money. But if you keep them in the loop, even when things are going well—or not so well—you build trust. Regular updates, quarterly check-ins, or even a quick email saying, “Hey, here’s what’s happening, good or bad,” goes a long way.

Investors appreciate transparency and communication. It makes them feel involved, rather than just a source of cash. In fact, the best investor relationships are built on the foundation of transparency. The more an investor feels involved in your journey, the more willing they’ll be to step in during tough times and help steer you in the right direction.

3. Be Open to Their Input (But Don’t Let It Derail You)

This one is tricky. Investors often want to give advice, and it’s not always good. But that doesn’t mean you should ignore it. Be receptive to feedback. Even if you don’t agree, acknowledging their input and explaining your reasoning builds mutual respect. Remember, they’ve seen a lot of companies rise and fall, and their perspective, even when critical, might just save you from a blind spot.

However, be mindful not to get derailed by too many opinions. While feedback is valuable, you also need to maintain the vision and strategy that made your company attractive to investors in the first place. Politely filter out advice that doesn’t align with your goals, and focus on insights that genuinely improve your direction.

Networking: It’s Not Just for Customers

Ever noticed how everyone emphasizes networking with customers but hardly ever talks about networking with investors? This is your edge. Networking with investors isn’t about securing funds; it’s about building your reputation. Your reputation is the single most important thing in building a long-lasting investor relationship.

1. Leverage Introductions

Investors have a Rolodex that could make your LinkedIn connections look like a Myspace friends list. They know people—other investors, potential clients, and experts in various fields. If you nurture a solid relationship, they’ll open those doors for you, but only if they see you as more than a name in their portfolio.

One successful introduction to a potential client or partner could significantly boost your business. This is where networking goes beyond just knowing names—it’s about demonstrating that you’re worth the recommendation.

2. Attend Investor-Focused Events

Yes, your calendar is already jam-packed, but make time for investor conferences and networking events. These aren’t just places to ask for money; they’re places to show your investors that you care about the community. By engaging with the investor ecosystem, you demonstrate that you’re committed not just to your business, but also to nurturing the relationships that support it.

Moreover, you’ll position yourself as a thought leader and influencer in your niche, which will only deepen investor trust and commitment to you.

Long-Term Partnerships: Building Bridges That Last

Here’s the kicker: eventually, the money will dry up. Whether it’s a market downturn, your company’s exit, or the investor moving on to new ventures, there will come a time when you don’t need their capital anymore.

What happens then?

If you’ve treated the relationship as purely transactional, it’s likely to fizzle out. But if you’ve taken the time to build a genuine connection, it can evolve into something more valuable—mentorship, partnerships, and yes, even friendship.

1. Ask for Help Outside of Funding

One way to signal that you value the relationship beyond money is to seek advice on things other than fundraising. Whether it’s strategic guidance, introductions, or market insights, engaging them in different facets of your business shows you see them as a trusted partner.

This also helps you tap into an investor’s vast experience. They’ve seen a multitude of businesses grow and fail, so their insights can provide a competitive edge that can’t be found in financials alone.

2. Support Their Initiatives

Here’s a novel idea: support your investors! They’re not just sitting on piles of money—they often have initiatives, foundations, or other businesses they’re passionate about. If you can find ways to support their endeavors, you deepen the relationship in a meaningful way.

Perhaps your investor is launching a new initiative, or maybe they’re hosting a charity event. Showing up for them, or even just helping promote their efforts on your platforms, can strengthen your relationship and show that you see them as more than just a source of funds.

Wrap Up

Investors are people too. Shocker, right? And just like people, they crave relationships that feel real. By investing time and effort into building genuine connections with your investors, you’re not just securing your next round of funding—you’re laying the groundwork for a partnership that can help your business grow in ways money alone never could.

Want to learn more? DM on LinkedIn or book a time to talk live!