You are at the point where you’re thinking about fundraising and wondering how to create a target list of investors, right?
It can be hard enough trying to find one investor in these competitive times. Founders often have their hands full just getting past all those hurdles before they start looking for funding sources that might actually invest!
Well, don’t worry – there’s an easy way out: The Startup Funding Blueprint from investorscsv team will help make your search significantly easier by narrowing down who should be on your pitch list with personalized research data and tips customized according to industry type.
Investor List – Why is it important actually?
The Importance of an investor target list is paramount when it comes to your startup. You need to know exactly what you are looking for and how much time, energy, and money will be put into that pursuit in order for the process not take forever.
Startups often spend months going back-and-forth with investors who may or may not want anything at all from them so being targeted early on can make a world of difference!
Startup founders need a list of investor targets to be successful. This is especially true if you’re looking for funding, but it’s also important when planning how much time and effort you’ll spend with each potential partner or stakeholder in your business initiative.
You may only have the opportunity to meet with 200-300 investors as an entrepreneur before someone says yes! It can take months just talking about the same ideas over and over again without being targeted – which means that some people might say no even though they could potentially help out down the road because they didn’t get enough attention from companies who are trying really hard right now.
To do this successfully, it takes a good amount of time identifying potential investors (including what they like) so when someone new pops up or even if there’s enthusiasm for some contact who has been on the back burner they can quickly get in touch without having lost precious energy.
Why are you raising money?
The answer to that question is the backbone of your fundraising strategy. Be very clear on why you’re going about this, and it’ll all fall into place more easily!
What Are the Values & Who will share them?
It’s not always easy to know what your values are. They can be subjective and change over time, but once you find them it is important that they guide the way in everything you do – including building a company from scratch.
You want an investor list who shares those same values because if they don’t then there will never be any connection or understanding of where both parties stand on certain topics which could lead to unnecessary conflict later down the line when things inevitably come up for discussion.
The values of your company will be largely determined by the type of people who invest. Investors are a major part in developing any business, and more so if you’re going to build it internally with employees.
They’ll set much about what kind of culture is allowed within an office setting, how decisions can be made or not – basically just all that jazz! Know this: The right investor for your project could make the difference between being incredibly successful or producing lackluster results at best.
Your vision and mission
The most successful startups have one thing in common: they find the right people to make their vision a reality. This means finding employees who not only believe in what you’re doing, but also share your passion and trustworthiness.
It’s important that these individuals are passionate about what they do on a day-to-day basis so if this is missing at all then it will be reflected heavily throughout any company decisions or actions which might take place over time as well.
Your type of business
Investors are all about the love or hate game. They either favor one type of business over another, and that preference changes with time too. So what’s their current favorite kind? Marketplace businesses, hardware projects, SaaS companies -or- have they fallen head over heels in love with a certain generation of these kinds instead? Are they still into freemium products now that it seems like everyone has caught on to it yet?
Investors want different types of businesses every day! Right now investors seem to prefer marketplace startups who cater for customers’ needs as well as those looking for cash flow rather than profit margin cushioning (maybe) but this could change at any moment!
Who has the money?
Before you can think about how to create a target list of investors, it’s important first to identify who is willing and able. Who will be well served by investing their hard earned cash with your company right now?
The investor who has the type of money you need
Do you know that person? Do they have a fund focused on startups at an early stage like yours, or do they invest in other areas but are interested in what your startup is about and would be willing to help with funding it from their personal funds if needed?
Is this someone whose company might want to acquire some ownership shares as well so one day down the line there’s a chance for them to turn around and sell what once was theirs back out when times improve economically – I’m not trying go all Wall Street here! Just making sure we’re considering all angles.
The first thing to consider is who has the money and what type of investors they are. Are these patient or short term capital types, comfortable with weathering the storm over time, or going to panic tomorrow?
What Other Value Will They Bring To The Table?
You may only be focused on getting money in the bank to make payroll. It happens. Be careful, this is going to be a long marriage that will have ups and downs – but you’re not just looking for someone who can get cash into your account right now; it’s about finding an investor with which you’ll build something together! So find out what they are bringing to the table before investing any time or effort in them.
Many people think that all they need to get started is an idea. While this may be true, there are many other things you’ll have to consider before diving into your project head on.
Who will invest in the business venture?
What kind of experience do these investors have or what connections can they offer me when I start scaling my company internationally?
And how knowledgeable about foreign markets and industry knowledge does this investor possess so as not to waste any time trying out a new approach for my customers’ needs which might very well fail because it doesn’t take cultural differences and regional nuances into account.
A savvy entrepreneur must ask themselves if potential partners could feasibly help them achieve their goals even if only partially from conception until completion but also define whether or not.
Who Will Be The First Investors In Your Company?
There are a lot of important decisions that go into starting your company. One thing to think about is who will be the first investors in your company and what their impact on you could potentially have, both now and for future generations.
Your list of investors is one step closer to being complete!
The more you know about the investor, the better your chances are at pitching and closing deals. Use this information for a shortlist:
Do they want equity?
Is their investment minimum $10 million or less?
Do they invest in startups outside America or your area?
Are there any specific industries that interest them, like health care or finance companies?
It also helps if you can show an example company with similar qualities – let’s say it provides banking services online. These questions will help determine which potential suitors are worth contacting first.