I need $1 million. Where do I find rich investors?

Dear Aunty B,

I have just had a very bad experience with venture capitalists who spent months poring over our financials only to refuse to invest. I now want to target rich investors. How do I go about it and do you know any? I need about $1 million for second round funding.

 

Geoff L,
Lane Cove NSW

 

Dear Geoff,

First thing: I assume you do need $1 million? Not less? OK. And that you also have a great business case, proven track record etc?

 

To get money from the rich and famous, you need to know who they are and why they are interested.

 

First stop is to read the financial press and know who invests in what. Many rich people love investing in fast growing start-ups, but you have to find out who likes what.

 

The next thing to do is get on their radar. They might use your products and love them so much they want to invest. Do you have any as customers on your lists that you could approach?

 

They might be in the same networking groups or be talking at functions you attend. Can you talk to them afterwards or arrange for an introduction?

 

They may be scattered among your school friends What? You didn’t go to school with the Murdochs or the Packers?? How about Scouts? Local cricket team? You must know someone rich…

 

Your accountants or lawyers are another great network to use. Ask them for introductions to clients who might be interested.

 

How about those VCs? Can they introduce you to any angel networks?

Still no idea? Make a list of all the big – or fast growing – companies in your industry or in complementary industries. Who are the rich people behind these companies? Call them and be really, really nice to their PA and suggest you send an email – maybe if she/he was so kind as to send it on to the boss?

 

But do make sure you are not wasting their time. Why are the VCs not interested? Have you addressed that issue yet? Because chances are the rich might take a similar view.

 

Cheers,

Your Aunty B.

 

Aunty B - Your problems answered by SmartCompany's business bitch

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