It’s not unusual for me to receive dozens of emails and DMs a day from business founders and aspiring entrepreneurs seeking advice or mentoring, or pitching for investment.
I’ve been investing in and have scaled-up successful businesses for over a decade and because of this I’m often asked what gets my attention. What does it actually take to secure a high-profile connection with someone whose investment you’re wanting to attract? What are investors like me really looking for in a founder? What makes a founder stand out from the crowd?
Only one in every 20 to 30 pitches is going to really pique my interest, and I don’t always get it right. Overall I tend to be attracted to founders who are hungry to learn and work hard to build their business, but also to those whose lifestyles and attitudes are healthy, which I see as a positive reflection on their professional dedication and discipline.
If you’re a founder, here are my top 5 do’s and dont’s for approaching potential investors for funding.
1. Make sure what you’re doing is unique, or at least a fresh take
Revenue-wise, while I am personally looking for businesses already turning over $1-5 million with an opportunity to scale, what I am also really focused on is businesses that can add value to the overall Superist group, and by that I mean, offer something unique that we don’t already have in our portfolio, here and overseas. So do your research and target those who are likely to be actively seeking your product or service to add to their network or have an obvious alignment to your industry or expertise.
We acquired a user generated content (UGC) agency called Your Social two months ago, for example, a type of business we did not already have in the Superist stable. Now thanks to them we do. Once we’ve completed a successful investment in or purchase of x or y type of business or agency in Australia, we will look at similar investments overseas.
2. Who are you and what do you personally have to offer?
In addition to a great product or service, or profitable business, investors will be looking for a quality founder with a hunger for hard work and success.
What do you personally have to offer an investor? How passionate or knowledgeable are you about your business and industry? How committed are you to the broader business, and are you intending to stay on once you secure investment? Investors can be turned off by founders who just want the cash and to exit as quickly as possible. As a Founder if you’re serious about attracting the right type of investment and growing your business, then you have to allow for time to stick around and support the opportunity.
3. Be willing to take advice and ready to learn
I seek out founders that are looking to scale, who want to learn, and who are willing to take our strategic advice and act on it with conviction.
I’m not looking for ‘9 to 5’ founders. That doesn’t mean I expect founders to work around the clock; it’s more about having an edge. Do you have an entrepreneurial mindset? Are you willing and ready to learn, take on feedback (and sometimes criticism), and are you ready and able to embrace challenges? Will you stay on track in the face of the inevitable setbacks that will arise?
When we bring a new acquisition into the Superist fold, we send in a team of experts who do a complete review of the business operations, management, and strategy. Personally, I also get involved and take my role as a mentor to these founders very seriously. So make sure you’re aligning with an investor/s that are a good fit culturally for your business and who will invest more than just cash to help your business soar.
4. If you don’t ask, you don’t get
Be willing to put yourself out there and just ask! Don’t wait for it to come to you. Some of those founders who I have ended up investing in have hit me up on LinkedIn and because I do tend to get inundated with requests, I may miss you the first time, so those that are persistent and who aren’t afraid to follow up are the ones that stand out.
Former AFL player turned Your Social founder and Managing Director Sam Murray is a great example. Sam originally reached out to me cold on LinkedIn pitching for investment. When I didn’t reply, he contacted me again. Sam says “my time as an elite athlete taught me that you can’t wait for opportunities to land at your feet, you have to go after them,” adding that “Nick liked what we do as a business but was also pretty direct about what we were missing in order to scale, and made me an offer.”
Sam fit my criteria for investment perfectly; he is hungry! We’ve transformed the business, helped Sam grow it into a market disruptor in a matter of months because he is aggressive with growth and, more importantly, he is out-working his competitors.
5. Be crystal clear on why you want investment
While it is great to go about seeking investment, make sure you’re crystal clear about your objectives – the why – don’t just go chasing money for the sake of it, or because it seems like the easy way out or you’re running out of runway.
Remember, once you take someone else’s money you immediately dilute your shares and/or equity in your business, which means relinquishing control. This doesn’t work for everyone. On the upside, any business brought into the Superist fold is afforded more access to more specialist people, more resources, and new potential clients.
Take your time, do your research, and trust your instincts. Then hit Send on that email or DM. What have you got to lose?!
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