Are you getting a lot of no’s from investors? Maybe you’re pitching the wrong people. Here’s how to find the right investors for you….

Different investors specialize in different parts of the market. You need to find the investors that focus on companies like yours. 

What’s Their Sweet Spot?

First, you need to find investors that invest at your stage. 

Most investors specialize in companies at particular stages. We call it a “sweet spot.” My sweet spot is companies at around $200k to $500k ARR. 

So, which stage are you? Here’s how early funding stages usually break down…

• Idea or MVP: Accelerators, friends and family
• Trickle of revenue (< $100k ARR): Pre-seed
• Early revenue ($200-500k ARR): Seed
• Early PMF (> $1 million ARR): Series A

Where Do They Invest?

Like most investors, I only invest in certain countries. For me, that’s the U.S., Canada, UK, and a handful of similar markets. 

Those are the markets I know best. They’re also the places where I have the most connections.

Be sure to pitch investors that invest in your country. 

If you’re in Nigeria, focus on investors that invest in Africa. Pitching a bunch of VCs that only invest in the United States is a waste of time. 

What Sectors Do They Like?

Investors also specialize in certain sectors. Some investors only do SaaS. Others only do marketplaces.

Then there are firms that only do deep tech, like satellites and microchips. 

Find investors that invest in your sector. If you’re a biotech startup, don’t bother pitching people who only invest in SaaS. 

Find Out Their Check Size

Finally, you should find out an investor’s check size. 

It’s a good idea to pitch investors at a variety of check sizes. Sometimes, a small investor like me ($10k checks) can connect you with a big fund.

Knowing each investor’s check size will help you put your round together. 

Most seed rounds include a lead investor writing a check of over $1 million. They also often include some smaller funds and angels like me.

Where to Find Investors

I’m a big fan of OpenVC. They make it easy to find investors in countless countries and sectors. 

When you’re searching on OpenVC or whatever platform you choose, filter based on the criteria above. Find investors that match your stage, sector, geography, and check size requirements. 

Once you find the investors you want to target, send them a brief message. Tell them about your vision, team, and traction.

Try something like this:

Hi Jim!

UberCab lets you call a black car using your smartphone. You can see the car’s location and you know your fare in advance.

We are at $10,000/month revenue, growing 50% MoM. 

My co-founder and I are both engineers. We’re raising a $2 million seed round.

Got 20 minutes?

Thanks,

Travis Kalanick

Keep it pithy! Investors are much more likely to respond to a a shorter message.

Wrap-Up

If you target the right investors, fundraising will get dramatically easier. 

No more beating your head against a wall talking to people who are never going to invest. Instead, you’ll be talking to investors that are excited about companies like yours.

Just like when you’re looking for customers, targeting the right people is everything. Target the right investors and you could find yourself raising millions.

Have a great weekend, everybody!

More on tech:

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