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View Full Version : Where to seek investor or partner



fayt
12-04-2012, 10:17 PM
I am interested in giving 20% of my company to an investor in exchange for some capital, or find a partner to buy in and own half the company. What is the best way to seek these people?

AvailableCredit
12-09-2012, 12:59 PM
Network, network and network, perhaps through a local angel investor network. Blacksburg has a tech council that has events that may be helpful, and Charlottesville might as well. i'd also recommend doing a Startup Weekend (just google it), either as a participant or as an advisor- it's a way to build investor contacts.

If you have an accountant or a lawyer, both should be willing to make introductions for you.

fayt
12-10-2012, 08:14 AM
The only problem is that my company is not a start up, it's almost 3 years old.

AlexB1
12-18-2012, 11:53 AM
Honestly from my experience that's even better as long as you can show three years worth of growth and cash flow. A lot of professional / angel investors have burnt out on the "true" startups and are more interested in somewhat established businesses. Look for local investor events, but also look up people in your area who might have some reason to want to invest in your company. Maybe they are retired and used to run a company similar to yours. Maybe they're passionate about working with companies in your sector. Then check linkedin and see if anyone you know knows that person and ask for an introduction. Remember though that most investors "invest in lines not dots", which means they will want to get to know you a little before investing. Start off the conversation asking for some advice and go from there. If all else fails you can just cold email someone if you don't have an introduction, but that's generally not as succesful.

Business magnate
01-24-2013, 05:05 PM
When insurance companies train new agents, they say to them something like, "Develop your contact list. Begin by making a list of 100 people you know. Then call them all. Ask them if they know somebody who would be interested in ______, or somebody who is _______" (they usually dont tell "life insurance," but some benefit from it)

Well you can try something similar... Call all the people you know and ask them what you are asking here...

Plus, you said your company is 3 years old. Great! Now you have proof for your story...

phanio
02-01-2013, 03:52 PM
Know that the 20% you want to give may not be what an investor will accept. The percentage of equity in a company given is based on valuation - both pre- and post- money. Looking for investors, always look in your backyard first. There are other business professionals that might want to invest or there are other professionals like doctors, lawyers, etc that are looking for better returns then they can get elsewhere. Go to your local chamber of commerce and get a list of their networking events and attend them - then talk to everyone. If the people you talk to cannot or won't invest, they usually know the people who can and will. Also, look to the gatekeepers - those lawyers, CPAs, etc that already work with local investors. It is much easier to get the attention of an investor if you are referred or recommended by someone they already know and trust.
Lastly, have you thought about a strategic partner - someone else in your industry that you could merge with or partner with to get the funds, help and advice that you are seeking?