Find Your Ideal Investor In 5 Easy Steps
Here are my favorite tips to find the ideal investor for your specific business!
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Here are my favorite tips to find the ideal investor for your specific business!
Read More
When you’re going out to market to raise money, remember to always save your best for last.
But how do you know who your best are?
Here are my favorite tips to find the ideal investor for your specific business!
Remember — investment firms are as different and varied as startups themselves.
To an untrained eye, every “firm” is the same just like every “startup” is the same.
After some light research, you can easily understand the wide variety.
Know what industry and stage they usually invest in to prevent wasting your time or theirs. (Dave Payne agrees.)
These tips apply to any stage but if you’re looking for your first money in, check out 6 ways to find funding to get the creative juices going!
Going to lump a lot of things into one category here but basic Googling or ChatGPTing is your friend.
Crunchbase, PitchBook, and other investment database websites are very helpful.
LinkedIn and Twitter — probably better for deep dive research than finding net new investors but definitely check them out! See who is talking about investing or a thought leader in your space.
Things to pay attention to when vetting a firm:
Don’t forget to look at strategic investors depending on your stage and industry. They often fly under the radar but can be a great option!
Find out who they recommend, spoke to, **AND ALSO** if they had a list they used.
Lists from fellow entrepreneurs often have notes or additional context (plus save you hours of work)!
Even better if they are in your industry or business type.
If one of their investors is a fit for you, ask for an introduction!
You’re building a subscription-based makeup company? → Who were the first investors for Stitch Fix or Birch Box? Add them to your list!
Who is someone that recently raised in your space that’s not a competitor? → Who invested? Who else did they talk to? If you’re not competitors, people are usually happy to share this info.
Who did your biggest competitor raise from? → They probably won’t invest in you but that’s a good starting place for research.
Follow the breadcrumbs to further customize your list and find other investors in your space!
In the Southeast, Venture Atlanta is the largest investor/startup event. Are there investors in attendance who match your stage and industry?
If your business isn’t B2B SaaS or Fintech (two favorites of the Southeast), what are the top consumer products, robotics, marketplace, or mobile app events?
Or maybe you target a specific vertical — what are the best aviation, solar panel, or manufacturing events? Investors will attend those looking for talent and new products.
Who is posting, speaking, or sponsoring those events?
Know someone attending? Maybe they have a copy of the attendee list they could share with you…😉
This is your new favorite question.
Ask your mom, the grocery store cashier, your kids’ friends.
Okay, maybe not them.
But definitely other investors, mentors, founders, anyone in the startup world! Most times, they won’t know someone or it’s someone already on your list. But every so often, they’ll have an “A List” gem for you!
I love interns (as you know) and they can be a great resource to get a list started.
BUT YOU CAN’T DELEGATE THIS COMPLETELY.
The learning from the research is invaluable.
You will start to know the firms, lingo, trends, people, and inner workings of VC.
You’ll get a feel for the firms you like the best, current fundraising economics, how companies are positioning themselves, and more.
Compile your “ideal list” while you’re fine tuning your pitch deck (especially that $$ and TAM) and let the fun(draise) begin!
Remember — don’t start your fundraising process with your ideal investors! Start with friendlies who are not a fit. Save your best for last so you’ve perfected your pitch by the time you speak to them.
Now that the summer slow down is over (hellooooo school year), we’ll share more fundraising tips and process advice in the coming weeks!
What other suggestions do you have for founders compiling a list of potential investors? How did you find your target investor list?
Here are 10 more investment resources to check out if you’re building in the life sciences, medical device, or biotech space with a **BONUS SECTION** for “Who’s Who in Life Sciences in the Southeast."
Read MoreLast week, we shared 8 firms in Atlanta that invest in healthcare and life sciences.
It’s an amazing list but many incredible startups are outside the investment theses of these firms.
I consulted the big guns to expand the list!
Insert Jane McCracken.
Founder, CEO, Board Member, Entrepreneur-in-Residence, Angel Investor, Life Sciences Guru, and Awesome Human.
She has taken multiple companies public, led multiple companies as CEO, and founded multiple companies with successful exits (several in life sciences). And she lives RIGHT HERE IN ATLANTA. 🤯🚀🦄
Jane had great recommendations! (Duh.)
Here are 10 more investment resources to check out if you’re building in the life sciences, medical device, or biotech space.
**With a BONUS SECTION for “Who’s Who in Life Sciences in the Southeast.”**
Let the life science innovation continue!
HUGE THANK YOU again to Jane McCracken for sharing her wealth of knowledge with The O’Daily! 🙏🙏🙏
If any of these firms or resources might be a fit for you, build that relationship and don’t forget to talk about the money!
What other life sciences firms or resources should we add to this list? Any tips for founders reaching out or pitching in life sciences??
Atlanta is a hotbed of biotech and life sciences talent. I often meet great founders working on healthcare, biotech, medical devices, or life sciences who are raising money. Here are some great Atlanta-based firms to check out!
Read MoreAtlanta is a hotbed of biotech and life sciences talent.
We have Georgia Tech, Emory, the Center for Disease Control, and many other institutions with incredible doctors, researchers, and engineers — plus funding and facilities for innovation.
One of the reasons my Atlanta Ventures colleague A.T. Gimbel started the Atlanta Healthcare Meetup was to highlight and bring together the people and companies in these spaces!
I often meet great founders working on healthcare, biotech, medical devices, or life sciences who are raising money.
Here are some great Atlanta-based firms to check out!
Not a biotech founder?
This post isn’t that fun for you.😢
Make it fun for someone else.
Share it with your healthcare founder friend! 🥳
(P.S. I’d be remiss if I didn’t mention that Atlanta Ventures does seed/Series A for digital healthcare companies, primarily B2B SaaS, but we’ll be a footnote, not on the numbered list 😜)
We’re lucky to have many great firms in Atlanta!
Of course, there’s always startups that aren’t the right stage or target for these firms.
No problem!
Here are 10 more life science investors PLUS a bonus section on Who’s Who in the Southeast biotech world.
(Spoiler Alert: a few more GA-based firms are on that list.)
Remember to build that relationship, talk about the money, and let the fundraising commence!
What other healthcare or biotech firms in Atlanta should be added to this list??
A 4 word pitch can be an amazing tool for your startup! How do you figure out the best 4 words? Here are 6 strategies plus *5 REAL WORLD EXAMPLES* to help you dial in your perfect, bite-sized pitch!
Read MoreLast week, we talked about a 4 word pitch and how it can be an amazing tool for your startup!
A bite-sized phrase about your company is WAY easier for people to:
Seems “easy” in theory but how do you actually figure out the best 4 words?
Here are 6 strategies plus *5 REAL WORLD EXAMPLES* to help you dial in your perfect, bite-sized pitch!
Technology is a good place to start. 😁 Explain what you do and see what ChatGPT or Bard comes up with. Include prompts like, “Explain it to a child” to get simple, not jargon-y language.
Pick a variety of people. Sometimes people who don’t know your business are better at this. Definitely ask people who are concise and good at word-smithing or simplifying.
Write down your several sentence pitch. Start crossing out words. See what’s left. Does it make sense? Can you take away more? Substitute a word?
Mix and match. See what clicks and fits best.
Follow the activities and process they recommend.
My amazing colleague, Jacey Cadet, VP of Marketing & Community, hosts *free* Pitch Practice every week at the Atlanta Tech Village.
Start on your own then attend Pitch Practice for expert feedback!
Saying we’re “Uber for x” can sometimes work — if the reference company is big enough and your analogy is clear.
But I’d encourage you to be “ride share for x” or “a marketplace for y” over using someone else’s company.
Large companies often have multiple business lines and revenue models so it’s not clear what part of that you’re mimicking (are you Uber ride share or Uber eats???).
Analogy companies can also hit rough patches. There were times when being “WeWork for…” or “Uber for…” would be a detractor.
Also, unless it’s a really really big company, you run the risk of referencing an unknown company. You’d be surprised how many multi-billion dollar companies are niche or obscure even to other business people.
Most importantly though, using your own words and descriptions shows you can stand alone in your clarity, vision, and focus!
Short and easy to remember! I will give you 5. Even up to 7.
You can go as low as 2 or 3.
But it has to be CLEAR and CONCISE. Think: a short phrase.
You can always add MORE detail to a short blurb. But you can’t unwind a too-long explanation.
Looking for examples or inspiration? Here are companies that I can describe without checking their website — my litmus test 😉
Infinite Giving - Modern Investing for Nonprofits
Greenzie - Software for Robotic Lawnmowers
Intown Golf Club - Social Club for Golfers
Prismm - Digital Vault for End-of-Life
Laine London - Wedding Dress Rental
Remember — people won’t remember the details. But they will remember how you made them feel.
Like, confused. By a long pitch. 😂
They will also remember 4 easy words that describe your company!
So nail down that simple phrase and let word-of-mouth unleash it’s magic!
What’s the best bite-sized pitch you’ve heard? What company descriptions can you remember off the top of your head??
We’ve been thinking about elevator pitches all wrong. I can’t memorize your elevator pitch. Neither can anyone else.
Read MoreWe’ve been thinking about elevator pitches all wrong.
I can’t memorize your elevator pitch. Neither can your mom, the other companies in the building, or your customers.
Yet we are all going to try to explain what you do!
We may even talk you up to friends and try to send business your way.
Your company elevator pitch is like a game of Telephone. You tell someone, they repeat it to the next person, and so on.
This repeats 10 times until you hear from a stranger that there’s an awesome new company that makes technology for purple ducks who drive space cars. And it’s your company!
So what happens?
It’s hard to remember and summarize a thing. Especially if you don’t spend all day, every day explaining it. Especially if there’s complexity, nuance, or fancy jargon words.
So here’s my challenge (a request really — help me easily share your company!) to all the elevator pitchers…
Can you explain your company in 4 words or less?
In case my Telephone game example didn’t resonate, here are 3 ways a short phrase pitch can help your business.
I probably say, “Do you know CompanyXYZ, they do <4 word phrase>?” 50 times per day.
Your mom says, “My child does <4 word phrase>,” 100 times per day.
If you don’t give us that 4 word phrase, we’re going to make up our own. (And it won’t be pretty!)
If someone asks what do you do, give them an “ah-ha” moment as quickly as possible.
A 3 minute explanation is weird, hard to follow, and comes across as sloppy at best, unintelligent at worst.
One sign of intelligence is communicating complex ideas in simple ways.
What would you rather have — someone’s eyes glazing over or a curious follow up question?
With a short overview phrase, your audience can quickly assess if they want to know more or want to move on to a different topic. If you “force” a long winded explanation, it’s a missed opportunity for connection.
The best 4 word pitches are a memorable, understandable overview phrase of what you do.
It will not be complete. It will feel WAY simplified to you as the founder (“we do so much more!”). But people will easily remember it and that’s important.
You’re striving for:
It can (and will) evolve over time.
Feel free to test out different variations to see when people have an “ah-ha” moment vs. blank stare.
It’s also a great thought exercise and forcing function.
Do you understand who you are and what you do? Are you focused or trying to be too broad?
Here’s the thing — if you can’t come up with a 4 word description (as the expert of the business), how is someone else going to?
How do you come up with a 4 word pitch?
Tune in next week, where we talk through 5 strategies for finding your 4 words and give examples of real life companies that crush it!
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What makes it easy for you to remember a company pitch or description? Have you found that shorter explanations work better or do you disagree??
Looking for your first investors but not sure where to start? Here’s 6 options that you may not be thinking of.
Read MoreLooking for your first investors but not sure where to start?
If you’re looking for traditional venture investment, I encourage you to:
This works well when you’re in B2B SaaS, you know the tech industry, and you were born (or learned!) to sell dreams.
But what if you’re not in tech, too early for most investors, new to the fundraising world, or your business isn’t sexy to traditional investors (e.g. smaller market, high inventory, tighter margins)??
(NOTE: Do not despair if your business isn’t “VC sexy”! Real life success stories below!)
Here’s the question I ask when someone is thinking about capital:
Who has money that cares about this problem???
(ALSO NOTE: If the answer is “no one,” find a new idea! 😂)
Let’s go through a few examples…
Do you have any high net worth customers that might want to invest in your business?
Current customers are fantastic investors because they:
An Atlanta-based founder with a brick-and-mortar consumer business (who was nervous about fundraising!) reached out to her customers. She learned that one of her customers was a professional investor. They filled the full $2M round.
Who will be your customer once your solution is in the world? Are they business owners or high net worth individuals? Could they be investors?
Future customers are fantastic investors because they:
A company in the food tech space had restaurant owners participate in their first round of fundraising. Even at relatively small amounts of investment ($5,000-$20,000), these restauranteurs were key to growth and learning. They were the first users of the product, a great proof point for traditional investors, and provided capital!
Are there any well-known individuals who have been directly impacted by the problem you’re tackling?
Examples:
A deep-tech startup in the cancer prevention space raised pre-seed funding from individuals directly impacted by cancer. These individuals were passionate about finding solutions with the means to support the work. They could write early checks that are too “risky” for traditional investors but essential to long term solutions.
With more support for entrepreneurship than ever before, there’s thousands of programs offering capital and resources.
When you ask, “Who has money that cares about this problem?,” the answer may be a nonprofit, an industry-specific accelerator, or an investment firm with a special mandate.
Examples:
An Atlanta-based fashion company went through Macy’s The Workshop and got a contract with Macy’s (along with great press coverage, connections, and a chance to win $100k in a pitch competition)!
Strategic investors and corporate venture teams aren’t usually the first check but they can be a great option to explore if they care about your problem.
Too early for a strategic investor?
Get all the deets from this first-hand account on successfully raising from strategic investors!
While they might not care about your problem, they care about YOU!
Who in your circle may want to support your entrepreneurial journey?
Examples:
A successful consumer products founder in the Southeast got her first check from her hometown congregation minister.
Another founder in the Southeast got her seed round from a local “Garden Club” of high net worth women who loved supporting a founder but had never been asked.
Creativity is an essential trait of entrepreneurship.
Use your creativity to think outside the box when it comes to fundraising, especially if it’s a challenging economic environment or you’re not in a “typical” VC market.
What other strategies have you used for early fundraising? What’s the best story you’ve heard about someone’s first check? Any other non-traditional sources of funding to share?
"Structured Procrastination" changed my life!
Read MoreHi, my name is Kathryn and I procrastinate.
Hopefully, right now, you’re thinking, No way. You deliver the O’Daily to my inbox every week on time.
But you also might be thinking, This does seem thrown together so that checks out. 😂😳
I used to hate my procrastination. I would be insanely jealous of my college friends who would be done with papers on TUESDAY for a Friday deadline. 🤯🤯🤯
I would sit down at my laptop on Tuesday night, committed to getting it done.
Four hours of Facebook later (it was still cool, okay?), I would head to bed with barely an outline.
Then I read this amazing essay by John Perry on “Structured Procrastination” that changed everything.
tl;dr — expect your procrastination. use it to your advantage.
But…you didn’t get #1 done?!?
No problem.
Schedule a meeting, tell someone you will have it by a certain date, hire a coach, make an accountability pod, sign up for a pitch competition, whatever will feel “real” and create pressure on your to-do list.
I am an Upholder/Obliger. So I *KNOW* that I keep my commitments to others. When something is important, I promise someone I will do it.
I use calendar blocks to help me visualize the actual time I have to complete a task or project. A Thursday deadline becomes urgent on Monday when I clearly see I’m booked with meetings on Tuesday and Wednesday.
You might be asking, but Kathryn, how could you train for Ironmans as a procrastinator???
Or maybe you’re thinking, how the hell can I build a big ass company — a 10 year endeavor — when I procrastinate??
Here’s what’s worked for me — set up systems that make it easy to do the right thing.
I didn’t think of Ironman training as “I’m going to do this really hard thing today and then repeat it every day until forever.”
I met my friends for a bike ride. I went to Masters Swim practice. I did what my coach wrote in the training plan.
A lot of it was “show up” and then let habit (and peer pressure!) carry you.
Same can be true for startups and company-building.
Here are common accountability mechanisms:
Some of these naturally occur, some will be cultivated as you grow, and some you may want to add intentionally today!
I’m such a sophisticated procrastinator that I keep a 3 item to-do list.
Let me explain.
I never put “clean the car” on my to-do list.
I know myself well enough to trust that I will suddenly, urgently need to vacuum the car 15 minutes before we leave for a road trip.
Don’t force that gnarly chore on a laid back family weekend.
Same with wiping down ceiling fans, cleaning out photos, updating old blog posts, and whatever other crappy task I *should* do but just can’t make myself at the moment.
All the anti-procrastinators right now:
But Kathryn — it feels so good to get your stuff done instead of having it hang over you!
Allow me to offer a different perspective.
I like the guilt.
When you read a blog when you *should* be replying to emails, it’s so much more indulgent and enjoyable!
I’m going to treat myself. I stole this time! How luxurious to read the O’Daily.
If I’m already at Inbox Zero, I tend to meander aimlessly around Slack or LinkedIn. No productive learning or stolen moments of fun.
LAME.
It reminds me of the meeting cancelation paradox:
Instead of guilt, embrace the joy of procrastinating!
Repeat after me:
”I work well to deadline.”
”I know I’ll get it done when it matters.”
”I love using my procrastination to be productive and have fun.”
”I don’t beat myself up for procrastinating, I revel in it!”
I spend a lot of time (practicing how to get better at) saying no:
Procrastination is a secret, subconscious way to say no.
You say no when you have to. Because you ran out of time to do only the most important things!
It’s also a great way to say no to perfectionism and yes to shipping!
You may want 20 hours to perfect your slide deck but if you only have 2 hours, you figure out a way.
It’s not perfect but it’s live in the world which is 100x more important than perfect, especially at startups!
So how the heck to I get my blog out every week?
STEP 1: I tell my wonderful readers that I will email them on Tues. They are counting on me!!! (My Obliger tendency believes this. Reality is irrelevant. 😂)
STEP 2: I schedule a calendar block and stick to it — no meeting creep!
STEP 3: **where the magic happens** I include time in my calendar block for Inbox Zero and other random productive tasks to make the most of my structured procrastination!
What tips or strategies do you use to avoid or leverage your procrastination??
Are your customers mad at you? Congratulations!!!!!! You have built something that people want and care about. Here's what to do with upset customers and why they're future champions!
Read MoreAre your customers mad at you?
Congratulations!!!!!!
You have built something that:
It’s the first step to product market fit!
“Quiet quitting” is the most dangerous activity possible to a company.
I’m not talking about employees (though that’s not good either).
I’m talking about customers who leave without telling you.
Customers “quiet quitting” means:
Why would this happen?
When you have your first upset customer, follow these 3 steps:
1. Totally stress out. It’s a normal, visceral reaction. If you care, you will immediately have some level of “OMG” panic even if it’s a split second.
2. Remind yourself it’s a good thing. Then you’ll think about this post and realize it’s a CELEBRATORY EVENT!
Someone really cares about this product and the problem we’re trying to solve!
3. Respond to the customer ASAP. You may or may not be able to fix it but a quick response and willingness to listen will make a huge impact.
For a quick overview of what to do when customers are upset, here’s a Customer Service 101 Training Deck (customizable to your company) from our Customer Success Starter Pack.
Your upset customer, assuming they’re a reasonable human with a valid complaint, is a terrific prospect for a future advocate and source of referrals!
How To Make A Customer Love You:
1. Respond quickly.
2. Listen deeply.
3. Give updates about your plan of action.
4. Solve the issue or incorporate the feedback.
5. Make an advocate for life!
You’d be surprised how rarely companies follow those simple steps and what an impact it can have on customer loyalty.
So when you have your first angry customer, not only is a moment of celebration, it’s also a great time to practice your turn-them-into-a-future-champion workflow!
What have you learned from angry customers? Did you have any counter-intuitive signs of success or progress?
Last week, I got to dive deep on a favorite topic —> building BIG companies! We talked about: what “big” means, why it matters, how you actually do it, and — the 2 secrets that make all the difference!
Read MoreLast week, I got to dive deep on a favorite topic at Women + Tech in the Atlanta Tech Village —> building BIG companies!
We talked about:
Here’s the FULL SLIDE DECK with a bulleted summary below.
The only thing missing are my awesome jokes (LOLZ) and the great audience questions.
You have to be in-person for those! 😂
P.S. Women do tons of hard stuff all the time!
BIG Market Examples: aging in place (and more here), robotics, creator economy, healthy fast food, carbon tracking
Spoiler Alert: You can learn tech or find a co-founder! Many tech founders and CEOs are not engineers.
They seem wildly confident but even the most successful founders have doubts.
They do it anyway.
So can you!
What other advice do you have for building big???
If you attended, what was your favorite takeaway? Any that I didn’t mention in the recap?
Looking to raise money? You can wow with your amazing revenue dolla—WHAT? Not much revenue yet??? You can still project confidence and financial savvy with these 4 strategies.
Read MoreLooking to raise money?
First, talk about The Money. Alllllll the money to be made in your market.
This includes having a believable TAM/SAM/SOM analysis.
Then you wow with your amazing revenue dolla—WHAT? Not much revenue yet???
Never fear.
You can still project confidence and financial savvy to win investors over.
Showcase a precise and specific understanding of your business numbers to show investors that you can:
It’s simple but it will set you apart!
Here are 4 strategies to showcase your business savvy regardless of your revenue!
Maybe you don’t have much revenue. Every business, no matter how small or early, has tons of business data.
IMPORTANT NOTE — this doesn’t work if you’re wishy-washy.
Saying, “uh, about, 100 or so calls per day” does not have the same effect as, “I averaged 82 calls per day in May.”
Also, you can’t just have these numbers on a slide. You have to KNOW THESE NUMBERS in your heart and mind.
Add them in when answering a question or describing a revenue projection.
It shows you understand that numbers, not just ideas or cool tech, drive a business.
Don’t have much of your own data? Wondering how to justify revenue projections or financial models?
POWER MOVE: Study publicly available financial data from companies like you.
Sources:
Then reference it frequently:
We assumed an x% conversion rate because that’s what LargeUnicorn saw in their first year.
OR
The average spend in this area from F500s is $1,512,000 per year, and that’s up from $1,279,000 in 2020.
OR
PublicCompany gets 42% of their customers from Instagram ads and another 17% from influencers so we’re planning to start with those two strategies.
Explain what tests you’ve run and the (numeric!) results.
Tests? What kind of tests?
Test results can be a helpful proxy for revenue or validate a strategy.
It gives investors confidence in your plan because it’s based on real world findings, not founder musings.
Make sure you talk about the specific numbers, dollars, conversion rates.
We did a waitlist sign up test. We spent $515 on ads, got 3,000 impressions, with 5% conversion rate. We called each person that signed up and connected with 17 of them. 9 of those committed to a paid beta test for $99/mo. So we spent $515 for $900 committed.
Don’t have amazing metrics like my made up test data? 😉 Even something like this can be great:
We’ve had 95 conversations with VPs of Engineering at mid-size tech companies. Of those, 37 agreed to a follow up meeting. In those follow ups, 9 said they would have budget to solve this problem.
This is where you combine #1-3 to show that you’re thinking deeply and (somewhat) realistically about the future of your business.
Similar to our TAM/SAM/SOM tip of “Show Your Work”, use your data, industry data, and test data to explain why you think you can do $1M in revenue by year 2 or why you can get your profit margin to 40% when you’re selling 10,000 units.
Based on our test campaign with a 10% response rate & 5 demos scheduled, competitors charging $1000/mo, and the growth of this market by 200% last year, we think 10 new customers in our first quarter and 50 customers at $50,000 MRR by end of year with one sales hire is realistic.
It may sound obvious but you’d be surprised how many folks don’t know the details behind their financial projections or business model.
Do this from a position of strength by citing your supporting data and highlighting what’s fact vs. educated guess.
Explaining it with confidence while acknowledging hypotheses or unknowns can be a powerful way to build trust.
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Even when you don’t have much revenue, you can still impress investors and show you’re going to build a strong, financially-sound business.
Talk about numbers, drop juicy data points, and walk through your strategy and thought process with specific dollars, conversion rates, and metrics!
What other strategies can early stage founders use to show off their business savvy??
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