Anyone who has gone through the process of starting a new business or expanding a company knows the importance of building a worthy investor lead list. These are the dedicated teammates that a businessperson must rely upon to help fund a project.
Laying The Groundwork
There are many different options for building an investor lead list, from networking and building relationships to attending venture capital seminars. The best method depends on the needs of the business and the level of growth the company currently resides at.
Before the eager entrepreneur rushes into the field to build a winning list of investors, there are a few steps to take which can promote confidence in potential investors.
Have An Organized Location
This need not be a fancy office in a high-status building or a store front in a well-to-do neighborhood. It could be as simple as a home office or a public space. Wherever you do your work, it’s important that your work space is organized. A potential investor is investing in you as well as your company.
Know Your Investors’ Preferences
Find investor leads who have previously invested in your industry, and then demonstrate your knowledge and due diligence when contacting a possible investor. This should make it easier for you to inspire confidence on the part of your investors.
Seek Quality Over Quantity
It would be more beneficial to gain long-term, fruitful relationships with a handful of proven accredited investors as opposed to large body of virtual strangers.
Maintain A Strong Working Relationship
A good impression with an investor can generate repeat business. Do your research, know your market well, and your investors will love to do business with you.
Choosing the Right Investors
When the time comes to start building your list, remember that you’re building an investor lead list for the future; you’re building relationships that will solidify your team. This is not a disposable list to be used only once and discarded. A strong lead list can be used to generate value long after your initial offering. Take care to consider possible expansions and future endeavors. Seasoned investors are always looking for new opportunities and fresh ideas to invest in.
According to PrivCo’s Private Company Knowledge Bank, there are four important stages in the private company life-cycle. The first stage is the “Seed” phase. Seed funding can come from a variety of sources, including friends, family, or any private investor who wishes to help the project move forward. “Early Stage” occurs when the company is ready to move out of the garage or “stealth mode” and into the public arena. This is where a venture capital firm steps in with an investment. From here, the company moves through “Mid Stage/Expansion”, “Late Stage/Mezzanine”, to the eventual and all-important “Exit” phase. At this point a “liquidity event such as an initial public offering, direct sale, or buyout” pays out to shareholders.
Sources For Investor Leads
So now that you know what to look for in an investor and how to approach them, where do you actually find your investor lead lists? Well, you can seek and network individual accredited investors who have maintained a proven record, but that takes time and effort. Plus, how do you know if your investors are actually accredited? Is their net worth sufficient? Do they have liquid assets?
If you’re ready to go and need to push past all that hassle, you can purchase an accredited investor list. Our lead lists are full of trustworthy accredited investors who have expressed interest in a variety of industries. These investors have all been phone-surveyed by real investment brokers with strong grasps of accredited investor regulations, not by some offshore call center worker.
If you’re looking for gold investors, we have them. What about oil and natural gas? We have those, too. Real estate buyers? You bet. We have lists of private placement recipients from some of the most lucrative deals in the past few years.
If you’re interested in getting your offering to hundreds of eager investors, call or fill out a form on our website. Then, let the funding begin!