5 Things You Can Do to Save Time During Your Investor Search

How long does it take to get from initiating an investor search to the ultimate handshake? So many factors are involved to answer that question, but, it begins with more questions. Will your team and board stay together through the process? Do you have all the information together and organized that will be needed? Are you skilled with finances enough to speak with investors? Are you well informed on how to go about the search or how to set up a strong financial model for your particular type of project?

No one can predict natural disasters that cause you to drop a partner or that a team member would do something illegal that makes the news, but, we all can see clearly how that would hamper your investor search.

There are a few things you can do, however, that will move things along more efficiently with your process. I'll share five with you below, but, first know that I offer these as a consultant who has seen many one-pagers and pitch decks as well as having been on many project-funding calls.

Here we go:

#1) Pro Materials: Hire professionals to help you develop your pitch materials.

Presentation is everything. It should be short, to the point, and exactly the information a brokerage firm or investor in your space wants to see. No white papers. I'm making this #1 for a reason. I've seen pitch materials where contact information was left off, the "ask" was too hard to find, the deck was miles long and way too technical, the ROI was confusing, or the team information was incomplete. Do it right the first time and keep it updated.

#2) CFO as an Asset: Hire or engage an experienced CFO or Fractional CFO.

You want to hire them as a member of your team to help in developing your budget, projections, and to assist in preparing your data room. You'll want them to be on investor calls with you. I've heard brokers say that a CFO on a team gets positive attention from investors because they know the team is serious about watching their financials.

#3) Boost Your Ask: Ask for the amount you need and then some. It costs money to secure money.

Depending on the type of funding you want, (debt, equity, hybrid) there are likely to be fees you didn't count on initially. It also may take a bit longer to secure funding than you thought and prices on some budget items may have increased in that time. Check your supply/equipment costs, find some brokers to glean from, and talk with others who have received funding.

#4) Timeline Transparency: If you have a reason to be in a hurry for funds because of a particular deadline you are facing, it is critical that you share that information upfront.

Be as transparent as you can be about details that could delay all progress and/or waste time if your "due date" disqualifies you from a particular financial entity's ability to serve. It's pretty much assumed that you needed your funds yesterday, but, there are often factors in a startup's search that could present situations where timeliness is a big part of the funding scenario. Be sure to let those who are helping you know this information so that they can determine how best to assist.

#5) Customer LOIs: Get customers lined up - ones that will give you an official Letter of Intent (LOI).

A waiting-list of customers is a valuable thing to have. Letters-of-Intent (LOIs) is the documentation that will be important as a favorable "weight" for your pitch to investors. Gather them and non-vendor partners that can be endorsing factors for your bid, as well.

As with all major decisions in your business, relationship building and timely communication is going to be your best asset. Being excellent at follow-through on sending required information in a timely manner, accommodating with meeting times, and checking on progress will help those who are working to help you.

Being proactive is good but being responsive is critical.

If you have a innovative project that is heading toward funding and would like a conversation with our consulting team regarding your funding search, contact the Frontrunners Development team.

Final note: Google yourself and each member of your team and board. You want to know before someone on a due diligence team finds out if there's something on the "Net" that could be a problem. Deal with it responsibly.

World Changing Partnerships are innovative, collaborative, and entrepreneurial. Some of the best partnerships are the ones that launch new solutions to global problems.