How to Select the Right Investors
Busola is a Data Analyst, Market Researcher and Consumer Behaviour…
At this stage, you have created your investment teaser deck, but now you are trying to identify which investors to reach out to. The first thing to remember is that the role of your investor is to provide the expertise, network, and investment to help make your business sustainable and scalable.
As an entrepreneur, it is very important to know what profile you are looking for in an investor and how to attract the best kind of investors. It is okay to be picky, in fact, it is essential that you are picky and do not accept funding from just any investor who provides it.
In this article, I will share with you some tips on how to ensure you are selecting the right investor that will provide you with the resources to grow a sustainable and scalable business:
- Your investor should be someone you enjoy working with – not necessarily your friend, but someone you have a cordial working relationship with
- Your investor should be knowledgeable about your industry
- Your investor should have some knowledge in entrepreneurship and/or funds raising
- Your investor should have a track record that is evident in their portfolio
- Your investor should have a track record for investing in businesses such as yours, industry, or the stage of your business
- Your investor should have a strong network
- Your investor should be clear on why they want to invest in your business
- Your investor should do thorough due diligence on you and your business
- Your investor should bring diversity to your investment group
- Your investor should bring an appeal that will draw other investors to your business
An extra bonus is finding an investor that has a reputation for providing multiple rounds of investments. Selecting the right investor for your business can make or break your business. Do not feel pressured, do not feel rushed. Take your time, keep the conversations going until you are confident you have found the right investor.
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