Make Sure Investors Remember By Creating A Buzz About Your Deal

There can never be any guarantees in the process of connecting your company with capital because there are so many factors that impact an investor’s decision to invest. Unfortunately, even when a company has none of these obstacles, they can still fail in their quest for private equity funding because the interest of the investor wanes. An institutional investor or venture capital firm may decide they need to diversify and will not invest in a specific sector, even though they professed interest right up to negotiations of a term-sheet. A private investor may decide to invest in another project that rings a specific emotional bell or may have a personal matter that needs attention, sidelining any private equity investment transaction. Often, entrepreneurs make the mistake blitzing through investors and never providing updates, so when the circumstances change and the investor is ready, they are onto the next new opportunity rather than the deal they saw two months before. They either assume the company got their funding or have failed since they never heard from them again.

To create a Buzz about your deal and generate momentum for your offering, you need to tap in to the investor network you are creating with investors by communicating with them. Additionally, making a easy to remember buzz or tag line that investors will pass onto other investors is imperative to getting your message pass along. Investors who liked the deal, but have not yet invested, are your BEST source for potential new investors. Therefore it is important to keep interested investors updated with news about your company to increase the likelihood of investment. Maintaining communication, with not yet committed investors, is imperative to a successful capital raise.

Communicate with existing investors so they can ‘brag’ to their friends (and potential investors). Have an ‘elevator pitch’ with an easy verbal explanation, so that after the presentation, investors walk away able, and desiring to talk about this hot offering they just saw.

For companies ready to meet with investors

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