Lead Investor Research Paper

816 Words 4 Pages
Know what to look for

Before we move onto look at the concrete steps you can take to finding a lead investor, it’s important to understand what you should be looking for. Just as there are bad investors and good investors, there are also bad lead investors and good lead investors.

What makes a good lead investor?

First, you need to remember the responsibilities of a good lead investor. Since you aren’t just after the capital investment, you can’t pick your lead investor based on who can invest the most money. Whilst you do want a significant and tangible investment from the lead investor, the most important thing is to find someone who is committed and interested.

You want your lead investor to be almost as passionate about your business
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These investors keep telling you they might be interested if your business is able to do X and Y. They are not prepared to fully commit, even though they might see the potential. But a good lead investor should be a maverick; someone who is prepared to get on board even if you don’t have a line of others wanting to invest.

What are lead investors looking from your business?

You should also be looking for lead investors who clearly know what they want from your business. For this, you need to know what your business can offer to the investor to guarantee you find the right lead investor.

You must clearly think about the possibilities of your business. Don’t think this only in terms of the financial return you think you can offer, although it’s also important, but also how being involved with your business can enhance the investor’s personal expertise and career.

Furthermore, it’s important to match the interest and the expertise of the investor with the business and the industry it operates in. For example, if your business were part of the medical technology sector, you’d want to find a lead investor with expertise in this area. Naturally, they don’t need to be the master of the particular business idea or anything like that. But it is important they aren’t a newcomer to the industry or

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