How to Conduct Investor Research for Early-stage Startups
Fundraising Strategy for Early-Stage Startups (№4 of Series)
This is the 4th article in the early-stage startup fundraising strategy series. You can find the links of related readings at the end of this article.
I. Why The Investor Research Has Strategic Value
Many founders don’t conduct investor research in a systematic way, not to mention build a personalized data center for such information. They usually start with their network and then extend to first or second degrees of introductions from that network. Beginning with what you have is smart, but it is not enough or effective. Thinking about what you need first and trying to extend the outreaching to that scale will empower founders to control the fundraising process better and gain a more consistently successful result.
Founders consistently told me that first-round fundraising is extremely challenging. They usually have talked with dozens of or even up to 100 investors to get funding, sometimes not yielding the amount or deal terms they were initially seeking. Quite a few of them tell me they regret the way they initiated the fundraising. They start with what they have as most other founders do, and get stuck with their limited network or…
