Most investors have a few simple litmus tests that act as a filter during or before an initial meeting. Common litmus tests are:

1. Was this deal referred to me by someone I trust? If not, they won’t look at it at all. They figure if you can’t reach me through their trusted network, then you are either not motivated or not bright.

2. Was I immediately impressed by the entrepreneur? Many investors reason that if you can’t impress them in the first 5 minutes, then you can’t run a company. They want to hear who you are, what you’re doing, and why they should care and they want to hear it right away.

3. Do I instinctively trust the entrepreneur? Many investors will immediately dismiss an opportunity if they get any inkling that the person they’re talking to may be anything less than perfectly trustworthy. Would you give money to someone you didn’t fully trust the first time you met them?

Source: Colorado Startups

Gillian Parrillo
The Sacramento Executive