Venture capital · Investments

How do you choose the right type of investor for your startup?

David Parvey Marketing Professional

July 27th, 2015

My business partner and I are ready to launch a computer company, but we need capital. We are presenting to investors next week, but we aren't sure what the right scenario for us is. We would like to present an ideal scenario in the presentation that represents what we're looking for in an investor, so where do we begin? We have a $ amount set, so I'm asking more about formulas or approaches to raising capital. 

L. Marshall-Smith

July 27th, 2015

Look for an investor who brings more to the table than just $$.  Yes, of course you need the capital, but look for someone who is well connected in your industry, who can make introductions for you. Someone who can help you recruit staff when the time comes.  Someone who can help with strategic partnerships that could create early sales leads, etc.  Basically, look beyond the funding.

Burke Franklin

July 27th, 2015

From Howard Schultz, founder of Starbucks,"They must have passion for coffee and the coffee experience!" I posted a blog on this subject here: http://www.jian.com/2015/07/angel-investment/finding-the-right-investor/
Hope this helps!

Jesse Landry

July 27th, 2015

David, Most all investors I know will tell you to do your due diligence on who is interested in the space your company will be in. Ex: Cloud Computing (Understood this is broad), look for investors that will invest in that space plus have a network that might have an interest in what you are offering as a service. I'd also suggest getting out there to pitch meetups to see what investors are looking for as far as information goes - You'll also get great access to pick a few brains for advice. Quick glance at your LinkedIn says you are located in Hardwick, Vermont - Here is a great start - meetup.com/SUG-Burlington - If the geography works. Plenty more here - http://www.meetup.com/find/?allMeetups=true&radius=50&userFreeform=Hardwick%2C+Vermont%2C+USA&mcId=c5843&sort=recommended&eventFilter=mysugg - You'll have to sort to your interests though. If you find yourself in NYC I'd be happy to point you in the right direction as there are a plethora of Startup / VC events every day. Hope this little bit helps! Jesse

John Seiffer Business Advisor to growing companies

July 27th, 2015

It's sort of like dating. Or maybe more like an arranged marriage. Be clear on what you are looking for, get to know each other, check them out, they'll be checking you as well. And figure out how you'll give them a huge return on their investment.

Neil Gordon Board Member, Corporate Finance Advisor and Strategy Consultant

July 27th, 2015

It's one thing to talk among yourselves about what your ideal investor might be like, but why put a description into a presentation that might not match the person you're presenting to?

Olga (Kotlyarevskaya) Head of Legal at ClearSlide

July 27th, 2015

https://www.startupgrind.com/blog/a-startups-relationship-with-venture-capitalists-much-more-than-money/

Elaine Slatter Entrepreneurial Coach | Marketing Strategist | Creative Web Design | Content Developer

July 27th, 2015

  #1 rule, pitching to the right kind of investors. Do they understand the business you are proposing to start?   Here is our blog on pitching to investors.  Hope you find some of the tips helpful.  http://xlconsultinggroup.com/7-tips-pitch-investors/

Jb Henriksen Advanced CFO Solutions

July 27th, 2015

The right answer is an investor who has experience in your industry, who can not just put money into your company, but help you build your company with expertise or introductions to others in the industry. Valuation will play a big part in the selection as well. Some investors who are very good are going to beat you up on valuation, but if they can really bring expertise and help you grow the business, then it is really worthwhile. It also helps to have an investor who is up front about the terms of the deal. Too many companies have good ideas and get burned on the back end terms of the deal because they want money so badly. Good luck. JB JB Henriksen, Partner Advanced CFO Solutions www.advancedcfo.com 2015-07-27 13:42 GMT-06:00 David Parvey :

Peter Kemball Member Issuers Committee at Equity Crowdfunding Alliance of Canada (ECFA)

July 27th, 2015

Ask not what sum you need from the investor: ask what the investor can contribute in partnership with you to what the business needs to succeed. Implementation of this advice requires you to identify and accept the gaps in your strengths. Much and all as the investor is hiring you to manage their money, you are hiring them to help you do so profitably.