Looking to fund your ad tech company’s growth? Finding investors is an exciting yet daunting process, and there are a lot of things your company has to consider before you move forward with the next steps. After all, not all investors are created equal. Here are some tips you should keep in mind before making your decision.
1. See It As a Partnership
Far too many young companies make the mistake of choosing the person willing to offer them the most money or the best terms. Unfortunately, that lack of strategy can land you in a tough place. When choosing an investor, the first thing you should recognize is that this is a long-term partnership that goes beyond the money itself. To start, that means finding an investor that you respect who respects you as well.
2. Assess The Value Gaps
Once you realize that an investor should bring a lot more than just money into your partnership, it’s important that you assess your own knowledge and expertise and look for gaps that they can fill in. You can then equally judge and compare your potential investors based on their own experience in these gap areas. Ultimately, you should seek an investor that not only has knowledge in your industry, but also one who is able to bring specific skills, connections, and expertise to the table that can bring more than monetary value to your company.
3. How Much Time Do They Have?
When an investor sees potential, they’re apt to jump and make an offer, but you know that you need more than their money, which brings up an important question: How much time will they actually have for you? Just like some companies only seek investors for their money, some investors only seek investment opportunities for the potential profit with very little intention of offering any advice, guidance, or input beyond a check. So, make sure you find an investor who’s excited at the opportunity to truly act as partners.
4. What’s The Time Horizon?
Having a long-term focus is almost always the best idea, so look for an investor who’s in it for the long haul and not trying to make a quick buck. These investors will also be more likely to invest actual time into your company and be more committed to your sustainable success. In any case, you want to make sure that your time horizon aligns with the investor you choose and that you’re both transparent about your expectations.
5. Do Your Due Diligence
Lastly, the worst thing you can do is blindly trust an investor no matter how impressive their portfolio may seem. Getting positive references from other entrepreneurs is critical in the research process. The best companies are going to share good and bad situations to make sure you’re both on the same page and that you understand what they’re able to offer and what they’re not. Also, go off the beaten path and do some less traditional checks, like asking for information from the companies who didn’t have a positive experience and then going beyond that, checking credible sources for reviews and complaints.
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