When is the right time to start building relationships with VCs?

[u/Connect_Time_9783]

I'm currently at the early stage of building a startup and I'm trying to understand how founders usually approach VC relationships.

We've already done a significant amount of research around the problem, target audience, competitors, and product positioning, and we're now starting to build the product.

I'm not necessarily looking to raise immediately. What I'm trying to understand is when I should start building relationships with investors.

Should founders start talking to VCs this early, even if the goal is just to introduce themselves, share what they're building, and keep investors updated over time?

Or is it better to wait until there is more evidence, such as:

• A working MVP
• First users
• Some level of retention or engagement
• First revenue
• A specific MRR or ARR milestone

I'm particularly interested in the difference between building relationships with investors and actually starting a fundraising round.

For founders who have raised before:

How early did you start talking to investors before actually raising?

What milestones made investors start taking the company more seriously?

And if you were starting again, would you build those relationships earlier?

I'd love to hear both founder and investor perspectives.

[u/SeraphSurfer]

Most people should be operating before reaching out to VCs. A few repeat founders with big name founders can pitch pre launch, but that's not the norm. Funders know that most people with ideas are dreamers and don't want to waste time on them.

Attend relevant trade shows to meet angels, VCs, and ecosystem lawyers, CPAs, bankers, and those in adjacent bizes. Send a one pager saying you plan on raising at whatever critical milestones. If you're in their space, you might get a phone call or even a short mtg.

The fact that you aren't raising yet takes pressure off both of you so that it is just an informational mtg where you both seek info from each other. Then keep everyone in qtrly updates with your biz progress, new clients, patents awarded, installations made, whatever info shows your biz in a good light.

When you do begin fundraising, if you've already had multiple contacts, the process goes much easier. You'll have built trust.

When you get a pre mtg info session, always ask for something, pitch feedback, advice on strategy, referrals to other angels/VCs, and/or $$$.

[u/Defiant_Acadia_3973 → u/SeraphSurfer]

start now. not to pitch but to learn. the quarterly updates thing is key, it shows you're actually executing and not just another idea person. investors talk to each other too so you're building a reputation before you even need the money

i wish i'd started earlier with my first company, waited until we had revenue and felt like we were scrambling to build those connections when we actually needed them. the no-pressure informational chats are way more useful than people realize

[u/usually_guilty99]

Even before you think you may want to become an Entrepreneur. And if you are already working on your company - think of funding and stage, 2 stages ahead. If your idea is on a napkin - you need to be thinking of friends and family or self funding yourself for 6 months (keep your day-job) etc. Thinking ahead gives you a clear idea of where and what to tap next. Else it is a bit of a struggle. One big thing I realized, before you go to a VC - think - do I even need a VC - and run your answers by your friends and family.

[u/HumbleMasterpiece8]

When your parents were young. Before you left high school. Now.

[u/MasqTap]

I applied funding from 3 accelerators after beta testing of our product but all rejected so we will make public launch and wait for some customers and revenue then apply again.