Define your ideal investor: Before you start your capital raising strategies, it’s important to step back and consider what types of investors you are targeting before you build your investor list. Your ideal investor is a well-defined picture of the exact type of investor from which you hope to raise capital which you hope to raise capital If you try to raise capital from all types of investors, you’ll fail or struggle.
The first thing you need to get is a database of investors that would consider investing in your area. There are lists to purchase but you may also search the web. At Aspen Capital Fund we have compiled a database of more than 10,000 investors in the U.S.
You can do your own research by web searches or networks like LinkedIn.
Essentially, the advice here is to know your position and your ideal investor and then find a strategy by which you find exact matches for your ideal investor. The more targeted that list of prospective investors is, the higher the odds of getting funded. Target about 60 to 90 ideal investors.
The earlier this list is assembled, the more time you’ll have to cultivate relationships with these investors so that the ask comes easily when you need those checks. Cultivate relationship online and through social media interaction via all networks -some investors love Twitter, others LinkedIn.
Your target list should be created immediately and should include investor emails, social media profiles, phone numbers.
How best to use a database:
- Connect via all networks.
- Focus on a niche.
- Build a genuine relationship.
- Add value.
- Use text, video and DM.
- Build the trifecta.
The top mistakes made:
- No website, no photos of the team or bios.
- Cold emailing a template.
- Emailing everyone.
- Not having any online thought leadership or authority.
- Not providing any digital due diligence.
- Not having a capital raise strategy.
- Not knowing what you are doing with the database or list.