Looking for an investor? Find someone who has staying power

There used to be a cookie cutter route to success for local entrepreneurs raising funding, said PACT managing director Dean Miller. Head to Benjamin Franklin Technology Partners for seed funding, move on to Safeguard Scientifics for a Series A and finally, go public. 

Today, that’s no longer the “right” route to take, Miller said. It’s just one possibility.

Miller moderated a panel on the how the face of startup fundraising is changing during this year’s Regional Affinity Incubation Network (RAIN) conference held at the University City Science Center‘s Quorum space.

With so many options, what’s an entrepreneur to do?

Here are three tips from Miller and panelist and angel investor Ellen Weber on how to find the right investor.

• “Find someone that has staying power.” In this current market, it’s difficult to find new investors every time you want to raise funding, Miller said.
• Get a boost from your network. For people running incubators who want to help their tenant companies, Weber offered this tip: Get to know investors in the area — figure out what kinds of companies they invest in. Then, drop those investors a line if one of your tenant companies is raising funding and fits that bill. That’ll make the investor pay more attention. 
• It’s not just about the money. The entrepreneurs on the panel agreed that when looking for an investor, the investor’s network, experience and expertise are equally as important as her money. But plain old chemistry is important, too, Weber said. Think of it this way: when you start an investor relationship, it’s going to be a five to seven year journey, so make sure you get along with your investors.