Why This Is Important
Finding funders who align with your business's purpose and values ensures shared vision and strong mutual commitment. Funders who are invested in your success can help foster a supportive and trusting relationship that can weather the inevitable ups and downs of innovation.
How To Do This
Research potential funders' past investments, as well as their stated mission and values. Create a shortlist of funders whose priorities align with your venture's goals. Develop tailored outreach strategies for each funder you're interested in.
Tips
- Build a profile of your "perfect investor" to help focus your search. Include details like: what kinds of businesses they typically fund, history of successful investments, usual investment terms, how they measure impact, size of their network, etc.
- Attend impact investing events or join relevant online communities to connect with aligned funders.
- Be prepared to clearly articulate how your values translate into business practices, as many impact investors care about both impact and financial returns.
- Reach out to founders of companies that the funder has invested in. Ask about the funder's support style and how they handle challenges.
- Venture Capitalist typically expect a 20-30x return on their investment. Angel investors are more accommodating for lower financial returns.
- Share a quarterly newsletter on your venture's progress by sharing wins, challenges, and any areas in need of investor support and guidance. Allow them to give advice and track your progress so that when investment is desired, transparency, trust and impact is already establish and allows an easy transaction.
- Ask the funder about their experiences engaging your community of impact, and what they know about the community's history and needs, to assess their interest and familiarity with the issues.
- Be mindful that not all funders share your interests, and accepting money that isn't aligned with your goals and values can be detrimental to your business.