4 Secrets to Finding the Right Investor and Raising More Money

The market may show some uncertainty at this point, but fundraising efforts are certainly continuing. Luckily, Verbit has had great fundraising success, raising over $600 million over the company’s lifecycle and securing a Series E round late last year.

Investors around the world may not understand your vision. We were lucky that they saw our potential and understood our mission. Below you’ll find what it takes to successfully raise capital as a private company and how you too can navigate investor relationships and ultimately find the right people to help you. is shown.

RELATED: 5 Tips for Navigating the Entrepreneur/Investor Relationship

Serving as Chief Storytelling Officer

In fundraising, storytelling is everything. It’s about really demonstrating the fit of the founders and the market.

In my previous role as a lawyer, I became dedicated to identifying needs and seeing through the vision for building solutions. Most likely also the “Chief Storyteller.” As the founder of Verbit, I had to learn how to best tell Verbit’s story. I needed to articulate our unique story and values, but more than that, I needed to explain exactly how investors could be successful by partnering with us. .

We have investors in Asia, Europe, America and Israel. Part of our success has been able to convince investors from every continent on the planet (investors from different cultures) why we are worth it It may be due to If you can pitch them specifically, you have a much better chance of success and can align everyone’s interests for shareholder value.

Start by making a story. However, it’s not just the storytelling aspect when it comes to real opportunities. You need to make investors fall in love with you, not just your story.

Know how to navigate investor organizations

Successful fundraising is all about talking to the right people, the people who can make the decisions. If you’re a B2B company, talk to your B2B partner. Find out who they’ve invested in before who looks like you and what their interests are.

Also, decision makers are more likely to consider your pitch when they hear it directly from you. To make an impact and not waste time, you need to talk to real decision makers in your company. Say no to discoverers and peers.

Aim to build partnerships around understanding what excites them once you walk into the room or zoom in with them. Check if the offer is relevant. Then you need to make sure the terms are appropriate and fair. Establishing this shared vision and alignment is critical.

Understand how to approach inbound investor leads

If investors contact you, that’s great, but take the time to find out why they’re asking. There are five key questions we often ask or refer to.

here is the cheat sheet:

1. how did you hear [company name]and why [our industry] Are you interested in?
2. What size checks do you typically invest in and what growth rate are you looking for?
3. What does the investment process usually look like from your side?
4. Who is the partner sponsor supporting this deal? Please make sure you are in.)

The answers to these questions will give you a lot of valuable information to see if you are actually a good fit. They should choose to invest in you but you will be happy with them too Also, there is great value in continuing to build relationships with people at the company anyway, even if the timing of the investment isn’t right.

Building relationships ahead of time can create real momentum and can make work relationships incredibly powerful when the time comes.

Consider term sheets

Second, when it comes to terms, it may be helpful to have an informal meeting to facilitate discussion and negotiation. Suppose you want to know the probability that a transaction will be approved. I have heard many stories of signed term sheets and parties being withdrawn. I’ve come to hear it often too.

Once the term sheet is signed, is it done? What are the odds of final closing? Validate it by asking questions about the process and understanding what the investment committee needs. After all, investing offers options. Getting the highest rating is not always the best.

Investors need to evaluate both your technology and your story. You need access to whether they will not only fund you, but provide you with the right team to help and guide you to your goals.make sure they believe you.

Ultimately, companies looking to raise funds must demonstrate market size, founder capabilities, company technological moat, proven business model, and profitable revenue growth. Access to this information gives partners the information they need to invest in you.