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MenuHow do founders find the right investors when it comes time to find investment?
Smart Money is Good money, but how do you find the right fit. Where are some communities or tools where I could go look first. (I.e - Chamber of commerce, Angellist, etc..)
Answers
This has been discussed many times before and rather than repeating a lot of those things here, I will direct you to one of the best resources on this topic.
Clarity CEO Dan Martel recently released a video "Raising Capital Like a Pro" that covers most things you need to know about fund raising. Here is the link: http://youtu.be/7dew9hhWBB4
First of all, it's crucial that you know exactly who you are looking for. Without that knowledge, it's going to be hard to find that right investor.
How is investing in your competition? Who would be your dream investor? What are the values your ideal investor has to represent? How much capital do you want to raise?
Once you have questions like that figured out, it's much easier to determine where the right investors hang out.
LinkedIn is one of the best places to connect with investors from my experience. LinkedIn groups are a great place to start making connections.
When it comes to "who is right and who is not?", the quick answer is "Listen to your gut".
First and foremost you need to interview investors as much as they nit pick your team. Right fit is a great way to put it. You want strategic investors whereby they can introduce you to his/her network. AngelList is great as well as many other fundraising sites, however... one thing rings true with ALL of fundraising opportunities. People are not looking for a good idea. They are looking for the team, market size, traction, then idea. Good luck!
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Among platforms for startup funding, AngelList is the 800 pound gorilla. Does it make sense to use simultaneously other platforms like Gust, etc?
Short answer: Of course! Many angel groups require you to submit through Gust because it offers a consistency and makes reviewing applications easier. But not all use Gust same as not all use AngelList... I haven't met an angel who frowns upon using multiple platforms. I would encourage you to leverage your twitter and Facebook or Instagram to meet angels and get in their radar (don't hassle or stalk) just try to get exposed a bit to them by being part of the same meetup group, follow the same blog, membership... Subscribe to their own blog.. And when you submit funding request considerations do please send a follow up email or a call or basket of fruits if you have contact them before.HV
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What exit strategies do angel investors want/prefer for a service business?
Keep in mind that investors invest for returns. Telling a prospective investor that you want his or her money to grow your business but don't plan on ever generating a liquidation event that pays him or her a dividend is not likely going to work; angel or not. You may be better served with debt financing where returns are generated in the form of interest payments not equity value growth. BUT, if equity financing is the plan, you're going to want to develop a strategic exit plan right from the start. That means identifying prospective buyers, strategic channels etc and characterizing the value drivers for each right up front. You'll find prospective buyers come in a number of forms; competitors, bigger versions of you, strategic partners, private equity, etc. Each will value your business in different amounts for for different reasons. Understanding this is vitally important for you to navigate to securing the right money, from the right sources, with the most favorable terms. Once you've qualified and quantified each of them, then determine what (specifically) you're going to need to do to align your business with those prospective buyers generating the highest returns. This will drive your business model and go to market strategy and define your 'use of funds' decisions. This in turn result in a better, more valuable business whether you exit or not. Do it this way and you'll have no trouble raising money from multiple sources. You can learn more about the advantage of starting with a Strategic Exit plan here: http://www.zerolimitsventures.com/cadredc Good luck. SteveSL
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Looking for guidance for where I can find investors for my app?
As Ken suggested, there is a wide breadth of mobile offerings and although there are some great "mobile only" funds, each investor / fund has their own thesis that makes them interested in some but disinterested in others. Also, if your revenue generating, you should seriously consider bootstrapping further. Revenue is treated very strangely in early-stage investing and *might* work against you. AngelList is a great way to research investors but not effective in actually connecting with them. Find investors who you are confident will be passionate about what you're doing based on prior job experience or what you know they are investing in. Happy to talk in a call to help explain this further if you need more clarity.TW
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What's the best visual format to display the size of the market when doing a pitch deck.
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