Are you looking for investors? Finding investors and raising capital is one of the most challenging tasks you will face in business, especially if it’s your first time. It is crucial to be realistic about costs and timelines so you can find the best investor to enhance your company growth.
Overall, from start to finish, it can easily take 9-18 months to raise capital for the first time. Also, all the related costs for travel, hotel accommodations, conferences, and legal expenses can easily accumulate into substantial amounts.
To increase the chance of finding the right investor quickly, it is also important not to limit yourself to one particular investor type or geographical location. There are around 10 different types of investors in great numbers all over the globe which could be looking for a company like yours – don’t limit your chances by staying within your comfort zone.
It is imperative that you have a realistic plan of how much you are looking to raise as well as a solid, interesting story for potential investors. It is likely that the investor you are talking to is already very knowledgeable in their areas of interest, so focus on a simple, attractive pitch to capture their interest in the short amount of time you have in front of them. This should also be reflected in your business plan as well as on your website – keep it straight to the point. As well, the more you are looking to raise the more appealing you are to potential investors.
To save yourself time and money, a variety of tools are available to streamline the search and make it more efficient and therefore more cost-effective. Biotechgate, as an example, provides a unique Investor Database where companies who are looking to raise money can identify relevant investors within their specialist sector, therapeutic area or phase. Companies can then generate a list of potential investors who have given us direct information regarding their current allocations and areas of interest. For most investors there is even a point of contact available that can help as a “door opener” when contacting an investor for the first time.
If you want to learn more, watch our video covering our Investor Database: