“For some reason founders get their ego involved in fundraising where it’s a personal victory. It is the tiniest step on the way,” says Ron Conway, super angel.

Asking an investor for money can be a daunting task, but it is an important part of the fundraising process for many businesses. Here are a few tips for effectively asking an investor for money.

Do your research: Research the investor and their portfolio of companies. Understand their investment criteria and focus on demonstrating how your business fits within their investment strategy.

Develop a compelling pitch: Develop a compelling pitch that highlights the key elements of your business, such as your team, market opportunity, and financial projections. Make sure that it is clear and easy to understand.

Build a relationship: Build a relationship with the investor prior to asking for money. This can be done through networking events, introductions, or by providing valuable information or insights.

Make a clear ask: Be clear and specific about the amount of money you are seeking and the terms of the investment. Provide a clear and compelling explanation of how the funds will be used to grow the business.

Show traction: Show traction and evidence of progress, such as traction in terms of revenue, user acquisition, product development, or partnerships. This will help to demonstrate the potential of your business and make it more attractive to investors.

Have a solid business plan: Prepare a comprehensive business plan that includes financial projections, strategies for scaling the business and an exit plan for the investor. This will help to demonstrate the long-term potential of your business and give investors a better understanding of the potential return on investment.

Be prepared to answer questions: Be prepared to answer questions about your business and your fundraising plans. Be transparent and honest in your responses, and be prepared to provide additional information and documentation as needed.

Show your enthusiasm and passion: Be passionate and enthusiastic about your business and its potential. Show your confidence and belief in the success of your business, it will help to build confidence and trust in the investors.

It’s also important to remember that not every investor will be a fit for your business, and that rejection is a part of the fundraising process. Don’t take it personally, and use the feedback to improve your pitch and refine your business plan. Also, be persistent, but not pushy. Keep in mind that fundraising can be a time-consuming process, and it may take several meetings and follow-ups before an investor makes a decision.

Additionally, consider approaching multiple investors at the same time. This way you’ll have more options to choose from, and you’ll also be able to negotiate better terms for your company.

It’s also important to be transparent with the investor about the risks and potential challenges of your business and how you plan to mitigate those risks, to manage the investor’s expectations.

Additionally, remember to respect the investor’s decision, even if it is not what you were hoping for. A rejection is not the end of the road, and it can be an opportunity to improve your pitch, your business plan and also, to be better prepared for next meetings with other investors.

Finally, don’t be afraid to ask for help and advice from mentors, advisors, or other successful entrepreneurs who have gone through the process before. They can provide valuable insights and advice that can help you to improve your pitch and increase your chances of success.