Decide whether investment fits
Equity capital may suit a company pursuing substantial growth that can create an investor return. It may be a poor fit when the owner wants complete control or the business cannot support the investor outcome being proposed.
- Define the growth plan
- Understand the ownership offered
- Consider future funding rounds
Build evidence before outreach
Prepare a clear explanation of the customer, problem, solution, market, business model, traction, team, financial needs and use of funds. Support claims with verifiable information.
- Keep financial records organized
- Know the important business metrics
- Explain risks honestly
Research investor fit
Target investors whose stage, industry, geography, check size and expectations match the company. Use trusted introductions when possible and verify identity before sharing confidential information.
- Review prior investments
- Ask about decision process and timeline
- Use qualified counsel for investment documents