What do founders choose an investor for?
Expertise and wanting several investors (30 mentions each), trust (17) and distribution (11). More money: 2.
Expertise and having several investors rank highest
Sample of 77 pitches with a stated reasontimes a reason was mentioned
When founders explain why they chose an investor, they talk about what that investor brings. The investor’s expertise and having several investors on board were each mentioned 30 times. Trust came up 17 times and access to distribution 11 times.
Money itself is almost never the reason: “more money” was mentioned only twice. The best terms on the table came up 8 times.
What was said
Founder
And Ayman Abbas is a strong businessman who understands business very well.
Little Kitchen (Little Kitchen) · S5 E17 · 21:53 · Paraphrased
Founder
I chose Ahmed Tarek's offer because of his experience in the market.
Lakanto (Lakanto) · S3 E13 · 20:08 · Paraphrased