7 common mistakes when pitching for money

 As one of Business Insider's"30 Women in Venture Capital to Watch,” Fran Hauser knows what gets her to open up her own wallet to help fund a startup.

Here are Fran Hauser’s 7 most common mistakes people make pitching their business:

1. Forgetting the investor is a human being. Yes, fundraising is about products and money and financial returns and all of that. But there is also the human factor, too. You're asking this person to join you in a potentially risky (and hopefully successful) long-term relationship. Since this is a human relationship—and not one solely with the investor’s bank account—trust needs to be established first. To do this, spend time learning about the investor ahead of your meeting so you can make a personal connection. I know I greatly appreciate it when a founder starts the meeting by referencing something about me personally. Remember, the investor is a human being, not a human ATM.

2. Not qualifying investors. The same way you qualify prospects for a sales position, you have to qualify investors too. Look for investors that, not only like your industry, but also have either previously invested in that space or have a personal affiliation with it. It’s important to know if they are actively investing at the stage you’re seeking funding for, because otherwise you’re wasting their time—and yours. Find out when the last investment they made was, plus how many investments they make annually. And it’s crucial to know their reputation as an investor and how they treat partners. Regardless of how much money they can offer, do you really want to work with a known jerk?

3. Lack of honest Q &A prep. A great salesperson always tries to anticipate what the objections, comments and questions are going to be. Develop answers to the five questions you hope investors won't ask. Where are the company’s vulnerabilities? What holes are still yet to be filled in? Why won’t the company turn profit for a year? Make sure you air all your personal concerns that keep you up at night and have data-backed reasons why those issues won’t be a problem in the future.

4. Too much jargon. You want the investor leaving the meeting thinking yours is an opportunity too big to pass up. That now is the right time and YOU are the founder who can make it happen. But you don’t want the investor thinking you’re full of BS because you load on inspirational quips and a giant vocabulary. Be authentic by providing actual numbers and real-life stories. These are things that investors are going to remember and will be able to easily repeat to their colleagues. Simpler is better.

5. Dismissing feedback. The companies in my portfolio that failed have one common thread and it went back to my initial meetings with the founders: They were quick to dismiss any feedback. You can still be confident, have conviction in your company, and run things they way you want, and also show that you’re coachable too. Being responsive shows the investor you’re open to ideas, just like any good boss worth their salt should be. Relationships are not one sided.

6. Lack of mindset. Mindset is everything. If you go into your fundraising with a growth mindset, it will make the whole process so much more enjoyable. Go in with your eyes wide open. There are going to be a lot of NOs, but if you turn each one of those rejections into a learning moment, you’ll enjoy the process a lot more.

7. Why does the world need another X? Another common mistake I often see is that the founder starts with a product description before they communicate the pain point or opportunity. Convince the investor that there is a need first and then follow up with how you are addressing that need with your next billion-dollar idea.