Step 1: Set up an investor pipeline tracking system.
Potential source of capital:
Friends and family
Don’t worry yet about who you’ll have a chance of meeting or who’s right for your company. Once you have a list of names, you’ll be able to start figuring out how to reach out to each person on the list.
Step 2: Fill your pipeline with qualified investor leads.
You’ll likely need to start with 50 to 100 investors on your target list, assuming some will not respond.
The first people to go on your list are people that you are directly connected with through your personal or business network, including your family, friends, fans, advisors, mentors, customers, vendors or business partners who might be interested in investing in your business or referring you to someone else.
Once you’ve made a list of existing direct contacts, you will focus on investors that you want to target but aren’t yet directly connected with.
You can mine online platforms like Capital.com.my, CrunchBase, PitchBook, LinkedIn, or VC websites - it provides details about their background, requirements and the types of investments they are actively making.
If you have no idea who to approach, see how your competitors have raised capital in the past to pick up a few clues.
LinkedIn is a must for entrepreneurs. It puts you directly in contact with those involved in similar industries. Over time, your “network” will increase, and with it, a list of potential investors to contact.
Filter and qualify your leads.
You start with a wide pool of potential investors and narrow it down to those worth reaching out to. Use the following 3 key questions to evaluate and find your best match:
What kind of business do they fund? (sector, industry, existing portfolio)
What are their typical requirements? (location, business stage, deal size, investment duration)
Their core motivation for investing?
High ROI potential?
Strong social or environmental impact?
Innovative or disruptive technology, product or services?
Personal or mutual relationship?
You can save yourself a lot of time and hassle if you focus your initial efforts on the 30-50 investors who are most likely to be a good fit for your company. (You can always expand the list later.)
Step 3: Construct a data room for due diligence.
Sophisticated investors appreciate a well-structured dataroom (due diligence room) where documents are easily accessible, well organized and available at any time. This also allows you to produce all this information at once rather than respond ad-hoc to requests for different pieces of information.
Typical items in a dataroom:
Audited financial statements
Budgets and forecasts
Corporate structure and governance documents
Contracts and agreements
Intellectual property documentation
Marketing and sales strategies
Supply chain information
Manufacturing and operational processes
Employee benefits information
Permits and licenses
Environmental compliance documents
Customer and Supplier Information:
Customer and supplier lists
Technology and IT:
IT infrastructure documentation
Data security measures
Property leases and agreements
Land and building information
Board meeting minutes
Market analysis and competitive intelligence
Any other relevant documents that provide a holistic view of the business
Download Dataroom / Due Diligence Checklist
You can download a comprehensive dataroom checklist (70 Points) here.
Data Room to Pitch Deck Approach
Constructing a Dataroom before preparing your pitch deck is vital because it lays the foundation for a comprehensive and well-informed presentation.
By organizing and centralizing crucial business information in advance, you ensure that your pitch deck is not only persuasive but also backed by concrete data. This approach enhances the credibility of your pitch, as investors can delve into detailed information supporting your claims.
Additionally, having a Dataroom early allows you to tailor the pitch deck more effectively, emphasizing key points and addressing potential investor concerns based on the thorough groundwork done during dataroom construction.