How to get strategic investors on your cap table
In fundraising for Brij, we’ve been super thoughtful about bringing strategic investors onto the cap table.
Strategic angels are super valuable because they
?? Validate your business for big investors,?
?? Provide feedback and insights from industry insiders,
?? Share access to their network and friends
And for them, it’s a win-win because your product
?? Makes their lives easier?
?? Your gain = their gain
?? Promoting your product is natural and easy
Some investors in Brij that fall into this category are Jess Cervellon (Feastables), Ronak Shah (Obvi), Nik Sharma, Jordan Nathan (Caraway Home), Bryan Mahoney (Chord), & David Chernow (BRUNT Workwear), among many others.
Consequently, other founders have started to ask me how I’ve done this.
Well here is my secret sauce:
1?? Become known in the space.
Build your personal brand so people come to know you and see you as an expert in the space.
This is probably 99% of the heavy lifting - it requires building in public on Linkedin or Twitter and going to a lot of events.
2?? Build your network
While you are working on our brand, you will be out there meeting people and shaking hands.
Take note of who the innovators and influencers are and become friends with them.
Those are the people who either move the needle with their influence or strategic insights, often both.
Sometimes you are already friends, i.e. customers and evangelists.
3?? Start with some of your best customers
They know your product the best and have been singing your praises already.
Why not give them a seat at the table and a share in the upside?
4??Ask!!!
Once you have your street cred and some new friends, the last thing to do is ask.
Tell them that you’re raising and the value you think they could add as investors.
If you don’t ask - you have zero chance.
Make sure to let them know early because they are a strong signal to investors.
—
To recap:
- Have a strong personal brand
- Build your network
- Start with your best customers?
- Ask for the investment
Founders - do you have any other tips you want to add here?
#fundraising #foundersjourney?
Go From Unseen to Unforgettable ?? Consumer Brands ?? Creative Direction ??
9 个月Thanks for sharing your insights.