For startup founders, the goal shouldn’t be assembling a cap table filled with whoever was willing to invest, but rather intentionally constructed around investors who bring different forms of value. Guest author Antonia Dean, a partner at Black Operator Ventures, shares three things founders should look for in their investors.
Investors who can open doors you can’t are essential. Founders should ask what an investor can materially help accomplish over the next 18 to 24 months. Strategic investors with industry expertise, relationships, and resources can solve problems capital alone cannot. When growth stalls or challenges arise, an investor who can introduce potential customers is more valuable than one who only provided funding.
Investors who understand your exact stage are also crucial. A billion-dollar growth investor may not help a company with six employees, an unfinished product, and nine months of runway. Startup problems change dramatically by stage, from validating the market at pre-seed to proving scalability by Series A. Stage-specific investors who repeatedly work with companies at similar development phases provide more relevant guidance and support.
Source: Crunchbase News · Summarized by HeadlinesBriefing