How to Target the Right Investor
Targeting the Right Investor When you are at the stage to raise money and begin to target investors, it is essential to do your homework first. Did you know most investors have an investment strategy or investment thesis? If you are a product company, you would not want to be pitching to a tech investor. It is a waste of everyone's time and makes you look a little foolish. An investment strategy helps an investment fund focus and filter through deals. Most firms tend to have a particular strategy to become experts in that space, thus increasing deal flow specific to that field. There are other details you should be aware of when reaching out to an angel investor, venture capitalist, or private equity firm: Check size range a company typically writes Stage of the company depending on their risk preference - the earlier stage the company is in, the riskier the investment Industry / Type of company Return expectation- different sectors expect different returns The time horizon for the...