Approaching investors

An investor as a partner

It is important to see an investor in your business as a partner who will join you on your entrepreneurial journey.

You want to raise capital, you have prepared your business plan and refined your equity story to reach out to investors - but who to contact and what is the right way? Not all investors are created equal.

The "upside" is that early-stage, high-growth companies have a broad range of options available to raise capital. The "downside" is that to raise on the right terms, understanding the various types of capital available and navigating the investor universe effectively is crucial.

 

Not all investors are created equal

The most common type of investor are venture capital funds. This in itself can already be a complex landscape to navigate, as each fund has got bespoke strategies, philosophies and investment focus.

 

For instance, some funds are vintage, whereas others are evergreen funds. Some funds are industry agnostic, others will only invest in specific sectors. Some funds will take a hands-on approach to help you run your company, others will take a more passive role.

 

Besides a source of precious liquidity, venture capital investors will typically be long-term partners to your business more often than not. In many cases, they will take a seat on the company's board and impact strategic decisions going forward.

 

Understanding the nuances which distinguish different funds is paramount in coming to a correct decision. Our fundraising specialists have experience dealing with the venture capital landscape and they can assist you in scanning and navigating this universe.

 

In addition, when approaching funds, you might want to think about the following: 

 

Messaging

  • How do you convey your vision and company to investors?
  • Do you have a clear, compelling, but also credible story?
  • Are your materials polished and do they touch on all the key points that     investors want to address?

Timing

  • Have you considered current venture capital appetite? Are you approaching funds at the right time of the year?
  • What are the valuations in your sector?

Outreach

  • Will you be reaching out to a broad range of investors or only a handful of     favourites?
  • Will you stagger you approach with investors and if so, how? Creating     competitive tension can make the difference between a deal succeeding or     failing, as well as cause significant valuation uplifts!
  • How will you stage your due diligence process and the release of information     to investors?

Our specialists regularly advise companies on a number of fundraises and can help you craft or fine tune your messaging and your approach to investors.

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Testimonials

Arun K.
@pyxisconcerto
Jewellery business, Founder

Ithaca was able to provide hands-on support to put together a financing plan in very little time.

Through the platform, we were connected to a handful of freelancers based on their affinity for our business model and their backgrounds (it was great to see all had blue-chip financial institutions backgrounds).

Our specialist was pragmatic and results-oriented – she understood our business inside out and was able to deliver with minimal oversight.

The app was user-friendly, intuitive and real added value, as it helped us navigate all the steps of the project, from matching and outline, to delivery, to payment and completion.

Tomás L.
@pyxisconcerto
Hardware technology company, Founder

We wanted to update our internal operating model and perform a valuation analysis on our business.

Our specialist did a great job of pinning down the key drivers of our company and remodelling projections using a more realistic, simpler framework.

The valuation analysis was extremely detailed and touched on all the key valuation methodologies.

It is not our first time using freelancers or freelance platforms in the past, but the end-to-end focus on project delivery made Ithaca a fundamentally different, superior experience.