In raising funding you need to find investors. So how do you get in front of them?
First, identify the right type of investor and build up your network in that area.
Know your sector, stage, and revenue category and look for those who invest in it. If your target investor funds biotech then you should skip pursuing investors who fund fin-tech.
Second, start building a list of your target investor group.
Target specific people and not firms or funds. Compile a list of 20 investors and start building a relationship with them.
Third, start connecting with them online and in person.
In emailing, start with an introduction of who you are and what you’re all about and how it is relevant to them.
You need to bring something to the investor in addition to the ask for funding.
If you have a contact making an email introduction, provide them a short two paragraph summary. Include the following:
-Who you are – demonstrate experience and credibility
-What you are doing – make it interesting
-Why you want to connect – is it about an investment, advice, feedback, etc.
Don’t make your contact do all the work because they won’t be able to provide that information. Write it up for them.
In meeting them in person, bring something interesting to the discussion such as new information about a sector, company, or group that may be useful to the them. It could also be the latest research you have done on a topic of interest.
Keep the dialog going until you build a rapport with the investor.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
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Copyright (c) 2020, Hall Martin and investorconnect.org. All rights reserved.
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.