What happens on a reference call, and how to prepare for it

By the time a serious investor asks for references, they've typically already largely decided they're genuinely interested in the deal. The reference call itself usually isn't about deciding whether to invest at all, it's about surfacing anything that would meaningfully change how they structure that investment, or catching something specific the pitch itself never had the occasion to reveal.

The two kinds of questions investors are actually asking. Verification questions, confirming that the specific things described during the pitch actually happened roughly the way they were described, and character questions, exploring how this particular founder genuinely handles real pressure, direct disagreement, or being demonstrably wrong about something in the past. The second category matters considerably more than most founders expect going in, and it's also the category that's hardest to help a reference navigate well if that reference hasn't specifically thought about it in advance of the actual call.

Why treating references as a pure formality is a real, common mistake. Many founders provide a list of names to an investor and consider that step complete, without any further preparation or communication with those specific people. A reference caught genuinely off guard by an unexpected call, however positive their underlying actual opinion of the founder happens to be, frequently gives a noticeably vaguer, less specific, and ultimately less compelling answer than a reference who's had even a few minutes of advance notice about roughly what the investor is likely to ask and which specific examples might be worth mentioning if the conversation heads that direction.

What reasonable, appropriate preparation actually looks like. It's entirely normal and appropriate to briefly prepare the people you've offered as references: let them know specifically who might be calling and roughly when, what stage this particular investment conversation is currently at, and gently remind them of one or two specific, concrete moments or examples that would genuinely help illustrate what you'd want this investor to understand about you or the company. This isn't scripting a predetermined answer for them, which experienced investors can usually detect and which undermines the credibility of the reference entirely. It's simply ensuring a reference who genuinely has a good, specific story available doesn't waste it because they were caught unprepared and gave a generic, forgettable answer instead of the specific one they actually had ready if prompted.

Choosing the right mix of references matters as much as preparing them well. Select references who can each speak credibly to somewhat different dimensions of your track record, ideally including at least one person who's directly witnessed you handle a genuine setback or a significant disagreement, not exclusively people who will offer uniformly positive statements without much specific, memorable texture behind them. A reference who says "they're great" without elaboration is considerably less persuasive and less memorable than one who says "here's the specific, difficult situation I watched them handle, and here's exactly what they actually did in that moment."

One more thing worth preparing for directly. Investors sometimes ask references a version of "is there anything I should specifically ask the founder that I haven't thought to ask yet." A reference who's thought about this question in advance, rather than being caught off guard by it in the moment, can provide a genuinely more thoughtful and more useful answer, which reflects well on the overall relationship and the level of trust and communication it represents.

What to do if a reference gives a lukewarm answer despite your relationship being genuinely good. This happens more often than founders expect, sometimes simply because the reference wasn't specifically prompted and defaulted to a generic, unremarkable answer under time pressure. If you sense this happened, it's reasonable to follow up with that reference afterward, not to complain, but to understand what was actually asked and help them be more specifically prepared if a similar call happens again during this same fundraising process.

A reference type founders often overlook: a former employee who left on good terms. Investors sometimes specifically seek out people who worked for you and moved on, since their perspective on how you handle team dynamics and departures can be more revealing than a current employee's naturally more guarded view. If you have a former employee who'd genuinely speak well of the experience, they're often a more persuasive reference than another current supporter would be.