Raising money is time and labor intensive – it’s not possible to pitch everybody.

So your goal is to find the right investors as quickly as possible. And here’s the secret: They are just like you. Investors are just entrepreneurs trying to make money. And if you understand their strategy then it becomes obvious whether or not your business is a good fit. You can literally ask them what that strategy is and determine whether you’re a fit or not.

Paul Brown is a managing director at eLab – a venture capital firm with offices in Ann Arbor and Palo Alto.

He’s also a regent of the University- and before he was elected Regent, Paul taught this class. He’s one of the reasons it’s the best entrepreneurship class on campus.

Of all the great lessons Paul taught in the course, my favorite is the way he demystifies venture capital. Some venture capitalists cultivate an air of wisdom and intimidation. Paul doesn’t do that. So let’s start by hearing Paul explain who venture capitalists are and how venture funds work.