Investor targeting is a crucial step in the fundraising process, and approaching investors should be initiated way before launching a funding round.
It includes the discussion of
* Investor taxonomy and landscape.
* Structuring the capital and planning for co-investment opportunities and strategic investors.
* Understanding investor mandate, needs, and interests.
Most companies start contacting investors when they already need the funding and often rely on one standard pitch and a single marketing approach. Reliable data and advanced analytics support you in being familiar with the landscape of potential investors.
Understanding the “Investor Taxonomy” is crucial to identify your right type of investor and their ventures; stay informed of their investment mandate, the specific interests, but also touching soft information.
Be strategic, individual, and relevant: matching the structure, content, and offering to the horizon of each targeted investors. Create Relevance to make the best first impression: knowing enough about how investors think and operate to predict which investors are more likely to give you a Yes!