A Step-by-Step Guide on How to Build a List of Investors for Your Startup

The very first step to getting your startup funded is finding the right investors. But where do you find angel investors and venture capital (VC) firms? How do you connect with investors who align with your business goals?

It’s crucial to identify investors who invest in your industry and at your startup’s stage. Reaching out to the wrong investors is a waste of time because they won’t fund your startup.

Below is a step-by-step guide on how to find investors for your pre-seed or seed funding round.

The Strategy to Find the Right Investors

There are thousands of investors, but you need to focus on the ones who invest in companies like yours. Researching every investor will take months, so work backward.

A founder who raised an $8 million seed round shared this technique:

How do you know an investor will join your funding round? They have already invested in a similar company.

Here are 3 steps to find relevant investors:

Step 1: Understand Who Is Your Ideal Investor

Before you start searching, clearly define what kind of investors you’re looking for. Who can add the most value to your company?

Key Parameters to Define Your Ideal Investor:

1. Investor Type: Angels, VC funds, or both.
2. Investment Thesis: Which industry or vertical does the investor focus on? Examples include Healthcare, Fintech, SaaS, etc.
3. Startup Stage:
   • Pre-Seed
   • Seed
   • Series A and beyond
4. Geography: Investors usually prefer to fund startups in their home country.
5. Other Preferences: Add any specific criteria relevant to your business.

Types of Investors

1. Venture Capital (VC) Funds: Professional firms that invest in startups. Decisions are made by partners.
2. Angel Investors: Individuals who invest in startups, often successful entrepreneurs, top managers, or VC partners.

Who to Choose: Angels or VCs?

• Angels: More likely to fund pre-product/pre-revenue startups.
• VC Funds: Prefer startups with some revenue and early traction.

Investment Thesis/Focus

Most investors follow a strict investment thesis:

• Specific industries (e.g., Fintech, SaaS, Healthcare)
• Business models (e.g., B2B SaaS, D2C, marketplaces)

Writing down your relevant industries will help you target investors with deep market knowledge who can add strategic value.

Startup Funding Stages

1. Pre-Seed: For pre-revenue/pre-product startups. Focus on angel investors.
2. Seed: For startups with early revenue. Both angels and VCs are active.
3. Series A and Beyond: For companies with product-market fit and revenue growth.

If you’re unsure of your startup’s stage, check benchmarks like this one.

Step 2: Find Startups with Relevant Investors

Chances are you already know competitors or companies operating in your industry. Start here.

Why This Works:

If an investor funded a similar company, they might be interested in yours too.

Steps to Follow:

1. Make a list of 100-120 startups in your industry or with a similar business model. Why 100? Typically, this converts to 100-150 relevant investors — enough to close a seed round.

Tools to Find Startups:

• Crunchbase (recommended): Offers great filters and a 7-day free trial.
• LinkedIn
• AngelList

How to Use Crunchbase to Find Relevant Startups:

1. Open Crunchbase Query Builder.
2. Apply filters based on your ideal investor profile:
   • Industry
   • Stage
   • Geography
3. Use the “Announced Date” filter to exclude inactive investors.
4. Save the most relevant startups to a Notion or spreadsheet.

Pro Tip: In Crunchbase, enable the Website and Description fields in your spreadsheet settings for faster research.

Step 3: Turn Startups into a List of Investors

Once you have your startup list, convert it into a list of investors.

Steps to Find Investors:

1. Open the startup profiles on Crunchbase or AngelList.
2. Look at the investor list for each startup.
3. Identify and save the most relevant investors to your spreadsheet or Notion workspace.

Key Details to Collect About Each Investor:

• General Information: Name, position, city, company.
• Relevant Investments: Similar startups they funded.
• Work History.
• Content: Blog posts, interviews, or social media activity.
• Contact Information: Email, LinkedIn, or Twitter.
• Mutual Connections: Check LinkedIn for shared connections.

When researching VC funds, always identify the most relevant partner — they are the decision-makers.

Step 4: Connect with Investors

You now have a well-curated investor pipeline. It’s time to connect.

Two Ways to Reach Investors:

1. Warm Introduction: Ask for an intro from mutual connections.
2. Cold Outreach: Send a personalized email or LinkedIn message.

Summary Checklist

1. Understand Your Ideal Investor:
   • Investor type, stage, geography, and industry focus.
2. Find Startups:
   • Research competitors or relevant companies.
   • Use Crunchbase, LinkedIn, or AngelList to create a list.
3. Identify Investors:
   • Look at investor lists for each startup.
   • Gather detailed information.
4. Connect:
   • Warm intros where possible.
   • Cold outreach with personalized messaging.

Reff- url – https://shizune.co/blog/how-to-find-investors-for-your-startup-in-3-steps-guide/