It can be hard to know when you have a genuine investor on your side. Investors may be polite and seem enthusiastic in meetings, but that doesn't necessarily mean they are committed to investing in your business. Here is how you can tell whether you really have an investor interested in your business:

First, pay attention to what they are asking. If investors aren’t asking you many questions, or if they only ask broad questions such as ‘Who are your competitors?’ or ‘What will the money be used for?’, they might not be as interested as you think. People tend to be more probing in their questions when they have a real interest.

Second, consider the degree of difficulty of their questions. If your potential investor is not asking hard questions, you should be worried. Serious investors will challenge your assumptions and poke holes. That’s a good sign. It means they are digging deep to see if your business has legs. 

Third, when investors are serious about you, they’re heads down selling their fund to you: ‘This is our extra support, here’s why we’re good at what we do, and here’s how we’ll add value to your venture.’ If this isn’t happening, they might not actually be that interested in you.

Additionally, seek commitment from partners higher up in the organization. If a meeting does not lead to GPs or if your proposal is not presented to the investment committee, then lukewarmness is a good guess. No response and no senior involvement typically means they are not moving forward with you.

The next steps will be clear. Real interest tends to be tied to identifiable next steps and clear timelines. If VC doesn’t know what’s next or specify a timeline, it’s likely not real. 

Finally, beware of redundant information requests. Sending an investor for additional information, such as a revised financial model or expanded business plan, without a clear next step often simply means that ‘the ball is being carried a few yards backwards’. Poor communication can result in a lot of ‘no gain, ineffective running’.