Diary of a venture scout: looking for the right investor
[Read here my previous post in this series].
This post is about looking for the right investor. If you are an entrepreneur fund-raising for the first time, you are probably thinking that I am a fool, because “all money is good money”. In this case, you should review your fund-raising priorities, for at least two reasons:
As an entrepreneur, you should be aware that not all investors will invest in every possibile project, as promising as it may look. Scrupulous investors tend to decide well in advance which markets they will be after*. In addition, VC funds (as well as experienced angels) will probably have set in advance a few rules of thumb regarding their type of intervention, e.g.
Keep in mind these points when you start out your fund-raising efforts.
Once again, Mark Suster has just released a great post on this topic: read his post, then come back, if you please.
As a rule of thumb, please remember that the investor will choose you, not the other way around. You can, however, have a say in this process, by attracting attention and getting in touch with the investors you DO want in you captable. Here a few points:
As with everything related to VC and fund-raising, internet is full of useful posts. I’ve collected a brief selection here.
(*) But do not completely rule out gut-investing! ;-)
I am an Oxford MBA and an engineer with a passion for innovation and startups. I currently work with dPixel, a venture capital advisory firm based in Italy, and advise a few great startups such as Wanderio. Everything you can find here is my opinion alone. You can follow me on Twitter. Find more about me on Linkedin.