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Everyone agrees that raising capital is challenging. But sometimes we fail to set ourselves up for success. Finding the right investor, who shares your vision and mission for your company, is impossible without a structured approach. Simply searching for them won’t work, nor will spray-and-pray messaging.
What Does Work?
First, start early. Build your network with people aligned with your company mission, including potential future investors. Use your family, friends, and advisors to find more connections.
Second, do your research to understand a prospective funder’s investment thesis, past deals, and focus areas. Websites, LinkedIn, Pitchbook, interviews - it’s all useful info. Find out if they are deploying capital! Connect with founders they have funded to get first-hand info on their experience with a funder.
Third, approach them strategically. LinkedIn is a powerful tool when used carefully. Send a brief DM sharing what you do and thanking them for considering a connection. Post about your milestones to let them know what you are doing and build trust.
Fourth, use the network you’ve built for a warm introduction to the investors that fit your mandate. Be courteous, and consider asking for non-financial help first.
Then repeat steps 2-4.
Time-consuming? Yes, but necessary. Venture investing is a relationship business at heart. Do the work to engage thoughtfully and build trust, and you will find your lead.
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