Brian Nichols is the co-founder of Angel Squad, a community where you’ll learn how to angel invest and get a chance to invest as little as $1k into Hustle Fund's top performing early-stage startups

Every business book tells you to "network." Meet important people. Go to conferences. Exchange business cards.

Many think networking meant playing golf with businessmen or attending every startup conference or somehow getting invited to pre-Burning Man parties.

After spending her entire career building communities of entrepreneurs, she finally understood what networking really meant.

It's just about making friends.

The Friend Test

Wait, that's the big revelation? Stay with me.

People do business with people they like and trust. Who do we like and trust? Our friends.

Reflect on all the people who've helped you in business or life. What do they have in common? They're probably your actual friends.

The opposite is also true. Think about a time when you worked with a client or team member you didn't like or trust. They probably didn't pass your friend test. Doing business with them was extremely challenging.

When you're meeting new investors, potential team members, or partners, don't think of them as contacts to pitch on LinkedIn later. Try to be actual friends with them.

What Most Business People Do Wrong

They hard sell right off the bat. They obsess about their own self-interests. They don't keep in touch with people they've met. They spam prospects with irrelevant marketing messages. They don't show any interest in the other person's hopes or dreams.

No surprise that nobody responds to cold emails from these people.

Instead, ask yourself: what would a good friend do?

A good friend checks in to see how you're doing as a human. They spend quality time together, in and out of the business world. They offer to make introductions to potential clients, hires, or partners. They share relevant news, books, or articles you'd be interested in. They recommend the option that's best for you, even if it goes against their personal interests.

Hustle Fund GP, Elizabeth Yin especially loves that last point. Good friends look out for what's best for you. A true friend might recommend you accept a fundraising offer from a strategic partner over their own deal because it'll be better for your company.

Where to Actually Meet Investors

Start with your current network. Ask friends, family, and colleagues if they know any investors. Investors come from all backgrounds. They could be friends in tech, your local electrician, or the small business owner across the street.

Elizabeth has pitched her optometrist three times to invest in Hustle Fund. He turned her down. But maybe the fourth time's the charm.

Use LinkedIn, Twitter, and AngelList. Previously founders had to fly to Silicon Valley to meet VCs. Now you can connect with almost anyone online. On AngelList, find investors who've invested in startups similar to yours. On Twitter, slide into investors' DMs. On LinkedIn, ask second-degree connections for introductions. Many investors leave their email addresses in their biography sections.

Attend relevant events and conferences. While meeting people online works, nothing beats meeting people in real life. Find gatherings where investors in your industry meet and make friends there. Sometimes these events are local. Sometimes you'll need to travel. Even though Hustle Fund has a decent-sized online audience, the team loves hosting live events because they see the magic of connecting people in person.

The Taco Shop Strategy

The Hustle Fund GPs got stuck raising money for their first fund. They didn't know what to do, but Elizabeth had an idea: throw a party.

Not a rager. Just a fun gathering for their existing investors at a cool taco shop in San Francisco. They asked people: "Hey, we're pulling together a group of our favorite investors. Next Thursday at 7pm. You interested?"

Tacos and meeting other investors? Hell yes.

After guests confirmed, the GPs did one more thing. They asked each person to bring someone who might enjoy the party and have some interest in investing in Hustle Fund.

This strategy to pitch to a curated group worked well. And the tacos were delicious.

The "host your own fiesta" strategy works once you have a small base of people to invite. Do this once you've already built personal relationships with the invitees.

Building Relationships Takes Time

Fundraising is a long-term game. Hiring is a long-term game. Building companies is a long-term game.

Elizabeth tried to recruit Shiyan Koh to join her startup years ago. Shiyan went to work at NerdWallet instead, which was the much better decision. But years later, they ended up starting Hustle Fund together. If not now, then later. If not on this venture, the next one.

There have been many founders Hustle Fund said no to initially but later were grateful when they re-approached and we said yes. Whether on the same venture or a different one, sometimes it just takes a while for things to align right.

The Relationship You Build Today

Sometimes playing the long game means making sure people feel great about the situation, even if you could have technically optimized for a better deal. You may be doing many transactions with a party in your life, even if you don't know it yet.

If you were only doing one transaction, you'd want to optimize the best deal possible. But in a potential multi-turn game, that isn't the best strategy.

As we move into the next era where there's more choice for startups and investors, the successful ones are playing multi-turn games. Especially as founders become investors and vice versa.

The investors you meet today might not write you a check tomorrow. But they might write you a check in two years. Or they might introduce you to someone who does write you a check tomorrow. Or they might join your company. Or you might end up starting a fund together.

You never know how relationships will evolve. That's why you treat everyone with respect and build real friendships, not transactional connections.

For founders serious about building investor relationships before fundraising, Angel Squad provides a community where you can connect with investors, learn from experienced angels, and build the network that becomes crucial when you actually need capital. The relationships you develop before you raise are the ones that matter most when you do.