How to expand investor network?

How to expand investor network?

“Most of investor prefer warm introduction”, the advice is truth.  But warm introduction is only one of fundraising approach. Thinking about Coca-Cola, if it only selling product by warm introduction, will Coca-Cola become world top 500 company? Simply speaking, you should identify as many as potential prospect as possible, then approach these investors by using reasonable and effective ways. Warm introduction is only one of way.

In the fundraising domain, the “PRODUCT” is means your idea or project.   “PRICE” is how you define the company value, and how much you want to sell per share or token.   “PACKAGE” is how to make your idea or company look attractive.  Normally, it will be a serial of optimizing process include build the team, design the product/service prototype, construct the website and also the design.    PLACE is where you can sale your idea or company, by using what kind of PROMOTION strategy.   

Below, We will introduce the correct fundraising concept, understanding and most important the priority.


Step 1.  Define the idea or project

In the fundraising domain, PRODUCT means your company and product?  Why investor should take your idea? what makes it stand out.    we normally call it “pitch”.  As an entrepreneur, you will be also a dreamer and a good speaker.   Telling your and your company story by organize these content in the pitch deck (normally, use PowerPoint, Keynote or whatever and make it deliverable and read only, normally convert to a PDF file).   Through OpenAngel, you can submit your project, explain your idea, introduce your team, roadmap and upload business plan, deck, white-paper.   


Step 2. Define the price

The next step of fundraising is define the PRICE.   The price for your company equity or token price.   No product can’t sell, as long as the price is right.    The price depends on how many potential customers, and how unique your company and product is.   A startup company usually only has an idea or a minimum viable product.  So, don’t quote a high price, the most important thing is the get the very first investor buying.   Especially whenever there are so many competitors in the same industry.  


Step 3. Dress up your project

After you have a clear PRODUCT and PRICE, you have to think about make your idea and company looks attractive.   Now, you are start to PACKAGE you company.  In general, it include a great team, a great vision, a solid business model, a MVP (minimum viable product), a convincing valuation, offer something unique, a clear exit strategy to convince investor.  Then, the most important part is to organize these contents in a pitch deck.   You need to be able to sell your idea to investors in order to get their attention and interest.   So, do your homework to practice presentation as many as possible.  Because you may only have one chance to present for a potential investor. 


Step 4.  Where and when and who to introduce your project

To get investment from investor, you now have to distribute your pitch deck and company profile to as many potential investors as possible.    Withe Open Angel, you have save hundreds of thousands hours doing research and digging the the potential investors.   You should use Industries, investment type and Country filters and search bar to get a prospect list.  Where Industries is filter the suitable investor who has special interested in your industry.   Using Investment type is find the investor who focus on special funding stage.   For example, if your company is in the seed stage, you should focus on convince the investor who support seed round business.  You don’t have to spend your effort pitching to an investor who only focus on round A stage.   Use Country to filter investors who locate nearby your company.   Sometime, investor ask face to face meeting or site visit.  Especially many VCs only invest on the local companies.   You should start from  convince the investor near by you, then gradually expend to widely territory.  By leverage Open Angel’s resource.  You will get thousands of potential investors.


Step 5. Promote your project

Here we will discuss promotions.  Facilitate equity and token sales in your company.  This is a very important step and you should read it carefully.  Whenever you get a list of suitable potential investors, we strongly recommend that you first contact investors by visiting their website or social network, using search engine to learn about their investment thesis and their portfolio that they have recently invested in.  Find these invested companies on the Linkedin page to see who is the company’s CXO or co-founder.  You can reach out to these co-founders or CXOs from Linkedin and try to get their opinion on your new startup or company business model, don’t ask them to introduce you to investors in the first place. After you get some guidance or friendly feedback from these companies, you can ask these co-founders or CXOs to introduce their investors. Using this model, you not only get potential investors, but also potential partners. Finally, if you are still unable to reach this potential investor, you can contact the investor by submitting an application form or directly by email. Second, you can join some interest group or club which the investor participate, then contact the investor when any event or meet up. Third, you can attend conference or event which you heard the investor will join, meet them at venue.


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