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6.10 Action Items
Out of 100 entrepreneurs who look for risk capital, only 30 will be
granted a meeting with a potential investor; and only one entrepreneur
receives financing. How do you get to be that one?
In this Step you have seen that most investors have preferences about
the ventures they fund, and they will be looking at how your company
matches up with their criteria for becoming involved. You have also
seen that, if you look for it, there is a wealth of information available
to help you discover the investors that will be most interested in you.
The more knowledge you have about possible investors, the better your
chances of finding the right fit for your company.
The following checklist will help you to:
- assess your understanding of the ideas covered in this step;
- gauge your progress; and
- plan your company's approach.
| Activities |
Status? |
Target Date? |
Responsibility? |
| 1. Consider
what kind of investor you should look for. |
Determine what types of investors are interested
in companies at your stage of development. |
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|
Review your funding requirements to see how they
match up with the profiles of various investor types. |
|
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|
Decide what type of investor is best for you in
terms of:
- industry experience;
- location;
- investment leadership, syndication; and
- level of involvement in management.
|
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|
|
| 2. Find
potential investors. |
Use your own networks, professional groups or
associations, business contacts, economic development organizations, and so on,
to identify potential investors. |
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|
Use professionals, such as financial advisors,
lawyers and accountants with venture capital experience, to help identify
prospects. |
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|
Investigate online resources for identifying and linking up with
appropriate investors. |
|
|
|
| 3. Assess
and rank the potential investors you have identified. |
Get an understanding of investors' criteria, particular interests
and previous track record of investments. |
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|
Use a ranking system to match your needs with the
potential investors' criteria. |
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|
Choose the "best fits" for your company
to approach. |
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| 4. Review
your short list of prospects. |
Prepare a list of questions you would like to ask
potential investors. |
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Do research, ask among your contacts or make
personal contact with possible investors to learn more about them. |
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Look into the reputation, level of commitment and
personal styles of investors you are thinking of. |
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