How To: Build A Target List Of Investors

For entrepreneurs, networking can provide leads and contacts that provide them with access to potential investors (and funding resources). As part of this, entrepreneurs who are seeking funding should use their network to help them build a list of potential investors. The should be two fold first as a master resource of information and networked connections and secondly as a targeted list to present to in order to pitch and get funding.

Your network as a resource

Your network can be a massive resource for ideas, potential investors, advice on seeking funding and potential leads, access to investors themselves either directly or through connections in your network. The list goes on.

It is important to capture these leads and connections and to nurture these relationships as part of your overall networking strategy (where your priorities sit will, of course, depend on your specific strategy and associated goals). Even if you don’t need them right now – they may be valuable in the future.

As an entrepreneur networking and funding will only be a small part of your job – but it can be a very important one. So it is important to have a strategy to make the time you spend more effective.

Use your networking as a resource to create a Target List.

Create your Target List

When creating your list you need to be thinking about:

• what type of investors do I want to include on my list
• what type of investor is the right fit for me
• how can I find out more

Start with a basic list of potential categories of investors. For example:

• Friends and family
• Angel investors
• Angel groups
• Venture capital firms
• Family offices
• Corporate investors

Then expand these into specific contacts including individuals and companies. Who do you know either directly or through your network? Who can potentially make an introduction?

Then do a bit more research and digging to find out which of these investors are likely to be the right investors for you. Simply put – who is likely to fund you? Who will add value?

Part of your research for each potential investor should include finding the answers to these questions (and your network can be a great resource for finding these answers and finding the right person to talk to at your target).

• Does the Investor have a focus or speciality? Does this align with your business?
• Where is the Investor based? How will this affect the likelihood of them funding you and will this affect the support you receive?
• Check the figures and the threshold requirements. What are they and do they work for you?
• Look at their track record. What is their reputation like?
• What do you know about the individuals and their personality and vision?
• How can they add value? What can they do for you?

Answering these questions can help you narrow your list down to a specific Targeted List of potential investors that are the hopefully the right fit for you.

What should you include on your list?

Your list should include as much information as possible for future reference. Include your research and notes on potential investors along with contact details including email addresses, social media handles, phone numbers and addresses.

Where do you get all this information?

Your networking can be the best resource. This can be family and friends and contacts from your wider existing network. In addition to this you can also find potential contacts from:

• Networking with other founders
• Attending events aimed at startups
• Attending events aimed at introducing startups/entrepreneurs with investors, angels and VCs.
• Startup accelerators
• local groups and businesses aimed at entrepreneurs
• Organisations directly aimed at funding and investment such as UK Business Angels Association

Start seeking out those contacts and building those relationships now.