Raising capital can be difficult — but it doesn’t need to be.
With today’s technology, even early stage companies with limited resources can attract investors and secure funding without wasting time or money.
In this post, we explore how to use AI and machine learning to make your next capital search more informed, more proactive, and more productive.
The Analytics Advantage: Essential Cap-Raising Tools for Early Stage Companies
Why is capital-raising so hard?
One reason is asymmetrical use of technology: private equity firms, venture capitalists, corporate offices, and other investors source opportunities with powerful algorithms that scour massive datasets. With minimal time and effort, investors see hundreds of opportunities relevant to their particular experience, strategy, and goals.
Business owners need equally rapid, extensive research; otherwise, they are forced to rely on deal sourcing strategies that have the same precision as throwing darts at a board, blindfolded. More information means more control — making your capital raise more efficient and more cost-effective (and significantly less frustrating.)
So how do you level the playing field? Upgrade your technology — and start searching for investors the same way they search for you.
Be Informed: Build Your List of Investor Targets
Finding investors through your network is not enough.
To begin with, you’re competing with all the other companies that your network already recommends to their contacts.
You also may have only a few connections in your industry. Of those, only some will participate in your stage of funding; even fewer will be able to write checks within your target range.
And don’t forget: raising capital puts you in the rejection business. If the first investors say no, you will have to research and target all over again.
Just as investors map entire sectors, you should examine every active investor in your industry to pinpoint those most relevant to your capital raising goals. Intelligent search technology can create extensive lists of investors to whom you should be talking, and it only takes seconds. (See how Cyndx Raiser generates an entrepreneur’s ideal roster of investors with machine learning and AI.)
While a longer list of targets increases your probability of success, technology gets you past the fiftieth yard line even faster by identifying the best investors for your deal in record time.
Be Proactive: Use Investor Contact Information to Reach Out
Once you find your best-fit investors, don’t wait for them to contact you.
Platforms like Cyndx provide access to contact information, so you can form relationships and reach fundraising goals faster.
To further streamline your capital raise, Cyndx provides CRM functionality, so you can track outreach, store notes, and organize proprietary information all in one place.
Experience an Easier Way to Capital Raise
Want to see the difference today’s technology can make?
Contact Cyndx for a free demo of our capital raising tools. It will save you time, money and could save your sanity.
Reporting contributed by Colleen Gardner.