“To find a needle in a haystack, it’s helpful to know what a needle looks like. To find the right investor, know exactly what you’re looking for in a partner.”
Finding the right investor for your startup can feel like searching for a needle in a haystack. As a founder, this process can be daunting, but with the right approach, you can significantly improve your chances of success.
1. Cast a Wide Net, Then Narrow Down
Start by creating a comprehensive list of potential investors. Don’t limit yourself at this stage – include anyone who might be a good fit, including angels, CVCs, etc.
An ideal funding process would involve in getting several potential leads interested, ideally at the same time. LLMs can also be helpful in crafting the initial list and expanding on it.
2. Prioritize for Fit
Now, it’s time to refine your list. Consider:
- Investment stage (pre-seed, seed, series A, etc)
- Sector focus (generalist vs. specialists, thematic funds like AI/ sportstech, etc )
- Geographical preferences (regional or global)
- Other relevant factors
Remember: Quality over quantity. A targeted approach is more effective than mass outreach. It’s better to remove investors who are not a fit, rather than waste time and energy on banging on the wrong doors. My personal recommendation: when possible, avoid taking ‘small money’ from big funds. The potential negative signalling risk of them not following down the line and the fact that funds don’t like to lead their own rounds (i.e. mark up the price of something they led in the previous round), you’re better off waiting to engage the large funds in their appropriate stage. There are exceptions to this, of course.
3. Map Your Connection Paths
For each potential investor, identify your best route of contact:
- Direct connection? Second-degree connection? Potential for a warm introduction?
- It’s perfectly fine to send a well-crafted, thoughtful cold-email. But the chances of getting fast, warm response are naturally higher when the intro came from a trusted source (i.e. founders in the investor’s portfolio).
Leverage your network strategically. A warm intro can significantly increase your chances of getting that crucial first meeting.
4. Seek Vertical Expertise
A recent survey revealed that founders value one thing above all in investor support: understanding and belief in their vertical.
Tip: Look for specialised funds in your industry. For instance, as someone who invests in entertainment tech, gaming, and next-gen consumer startups, I bring not just capital, but also a deep understanding of the space and a strong, relevant network.
Some generalist funds can be awesome and also develop expertise in verticals over time. The important part is that the partner working on the deal and the founder have mutual respect and a feeling that they could work well together, so do try to explore personal fit (and solicit recommendations from other portfolio CEOs when possible).
5. Do Your Homework
Before reaching out:
- Study the investor’s portfolio
- Understand their investment thesis
- Read their blog posts or social media
This knowledge will help you tailor your pitch and demonstrate genuine interest. The big takeaway from Dale Carnagie’s bestseller ‘How to make friends and influence people’ is that “interested is interesting”. The more a founder has done their homework the more likely the VC will be very engaged in the conversation. It’s just human nature.
6. Craft a Compelling Story
Investors hear countless pitches. Make yours stand out:
- Clearly articulate your unique value proposition
- Show traction and market potential
- Demonstrate why you’re the right team to execute this vision
A lot of what VC investors in particular are trying to asses (even before taking a call) is the fit between the company and the VC model. i.e. a pre-seed VC needs to form an opinion on whether this team, and this idea, can become a large company that will generate millions in revenue. If the answer is no, there’s nothing wrong with the idea, per se, but it’s less likely to be funded by venture capital investors. Angels and other forms of funding (grants, crowdfunding, etc) might still be very relevant. Also: investors can be (and are often) wrong.
7. Be Patient and Persistent
Finding the right investor takes time. Don’t get discouraged by rejections – they’re part of the process. Learn from each interaction and refine your approach.
Inboxes these days can get very full, emails can be missed. It’s ok to send a nudge if you believe your email might have landed in spam. Sometimes a no can mean a ‘not now’ for whatever the reason. If there’s a good initial fit, keeping in touch can open the door to doing a deal later (assuming the stage is still relevant for the investor). Also, sometimes the founder needs to raise the entire amount for the round to officially close. It’s recommended to re-engage investors who were not candidates to lead the round, before the round has closed.
8. Build Relationships Early
Start building relationships with potential investors before you actually need funding. This long-term approach can lead to more organic, trust-based partnerships.
Remember, the right investor brings more than just capital. They bring expertise, connections, and a shared vision for your success. Take the time to find that perfect match – it’s worth the effort.
What strategies have worked for you in your investor search? Let’s share experiences and learn from each other in the comments!
Finding the right investor isn’t just about securing capital—it’s about finding someone who truly believes in your vision and can add long-term value.
I'm a former general partner at google ventures, head of Google for Entrepreneurs in Europe and founding head of Campus London, Google's first physical hub for startups.
I'm also the founder of Techbikers, a non-profit bringing together the startup ecosystem on cycling challenges in support of Room to Read. Since inception in 2012 we've built 11 schools and 50 libraries in the developing world.
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