Identifying the Right Investors

There’s one truism for any startup: you’re always raising money. It is thus imperative to know how to raise funding. With the recognition that investors are often onboard for the life of the company, it’s important to identify the investors who have the right fit. This chapter covers the different kinds of investors and the various elements that they look for before they invest. The risks of first-time angel and strategic investors are also discussed. Strategic investors provide startups with opportunities to create an exit option as well as to use the investors’ credibility to capture dramatic value. These options are discussed with examples in this chapter.