The investment landscape can be a minefield to navigate, investors each have differing criteria and offerings so understanding the eco-system and how that applies to your requirements will make your process more efficient.

‍

Failing to familiarise yourself with the fundraising terrain results in time wasted approaching investors that don't suit your businesses' stage and needs, worse still, it's a source of frustration for investors who already spend large amounts of time filtering through high volumes of decks.

‍

Look out for the language used on investor websites as they will typically give a feel for investment stage and equity cheque capacity, along with details of their sector or functional focus.

‍

This graphic summarises the type of investment relative to the stage of a businesses' development and the level of equity involved. All approximations, but hopefully a useful guide.

‍

‍

Clarifying your requirements will help to categorise investors as you start to research the market as the level of support and experience differs at each stage.

‍

At a high level, seed develops a concept, venture supports growth and private equity enables key shareholders to de-risk by cashing out a proportion of their stake.

‍

Once you understand what you are looking to do with the cash, considering the type of support you need is the next step to identifying the most relevant stage.

‍

This exercise may have helped you to curate a long-list of potential investors, so, to help bring this down to a more manageable first approach list.

‍

Finally, you hit fund specific nuances such as how they support their portfolio companies in a downturn and approach to culture.

‍

There is a considerable amount to understand before you start to navigate these end-stage questions, and a lot of this knowledge relies on familiarity with the investment landscape.

‍

In summary, putting in the work up-front and using your networks means you are more likely to target and develop strategic investor relationships in which their capabilities, values, and visions are aligned with your own.

‍

To discuss how we can support this process, get in touch: info@theimplicit.co.uk