UNDERSTANDING WHO YOUR LIKELY INVESTOR WILL BE

If you are a startup, your likely investor is not an institution or venture capitalist or angel investor. Professionals know that 95% of startups fail within five years and they do not want to be the first money in.

Profiling Investors

Showing your project to potential investors means identifying individuals who would be interested in the idea behind the project. In many cases, the likely investors will not be professional investors. The "investor profile" will likely be that of a small investor, investing amounts from $25,000 - $50,000. Finding 20 investors willing to invest $25,000-$50,000 would be an example of where you could start.

Though it may be possible to interest Venture Capitalist and Professional Angels; it makes sense not to limit your options to just them. The investor you should focus on will be driven by the deal and the idea behind the project. Be realistic in your risk assessment: 

It is very important that you properly identify what the likely prospective investor profile looks like and gear your presentations to that profile. This is a very important element of your overall strategy and a key to the potential for your successfully raising funds. If advertising for investors, this process will be the core reasoning behind structuring your ads.

Finding Investors 

There are millions of individuals with IRA's and 401k plans receiving less than a 1% return on their retirement accounts. You may be one of these persons yourself. Most of these individuals are wondering how they will ever have enough money to retire eventually. These individuals would be an example of one possible type of an investor profile. Many of these potential investors are searching for substantially better returns and will likely be your best prospects.

Next: UNDERSTAND KEY POINTS WHEN ADVERTISING FOR INVESTORS