An article we liked from Sarah Turner:
Why investors need to stop taking ‘warm’ intros
There’s a fairer, more transparent and much more productive way of doing things.
I’m an angel investor with a modest public profile as cofounder of Angel Academe. I can’t begin to imagine what it’s like for ‘famous’ investors but, on a normal day, I’ve received five introductions to founders looking for investment before breakfast.
Some introductions come through LinkedIn, others directly into my email inbox. The vast majority are introductions from people who I may have connected with at some point or have my email address somehow, but aren’t people who I know well enough to consider part of my trusted network.
Most of the people who are in my trusted network, so in a position to make warm intros, don’t. They know that the best way into the Angel Academe pipeline (and onto my radar) is via our application form. They might mention that they’ve recommended someone apply, but I’m eternally grateful that I don’t have to send yet another email linking to our application form.
The lure of the warm intro
I do understand the value of genuine warm intros for many investors. If an intro comes from someone who you’ve invested with, or from entrepreneurs you’ve invested in, or very close contacts, it can save you a hell of a lot of time. They’re likely to understand exactly what you’re looking for and have prepped their contact accordingly. Their own credibility depends on the quality of their intros, so it’s a virtuous circle.
But these trust networks are by definition small, so the danger is that you only see opportunities from a limited number of already well-connected founders. And less well-connected founders can waste a lot of time trying to find someone to introduce them who may not be a close contact at all. Research by Diversity VC shows that women are less likely than men to be able to get warm intros in the first place and, even when they do...
Read the rest of this article at sifted.eu...
Thanks for this article excerpt to Sarah Turner, Cofounder and CEO of Angel Academe.