How The Best Investors Pick Their Next Venture

Think like an investor and improve your chances of success.

Founders, get your investor hats at the ready. Preparation and pitching isn’t always fun, in fact, it’s often the opposite. Stepping into the boardroom is a daunting process, but have you ever thought about what your potential best investors are looking for? The likelihood is yes. It’s also likely that you’ve made wholesale deck changes ahead of each meeting. 

Here’s a little secret. Don’t chop and change too much. ‘Best investors’ doesn’t mean those with the biggest portfolio or deepest pockets. It means providing the perfect climate for your startup to flourish. Stay true, stay consistent. With these simple tips, you can put together an effective strategy to find the right match and achieve your funding goals.

Find the right fund

Fund size. It’s a thing. Some are big, some are small. Some are in the middle. Even the most identical-looking investors can be separated based on the size of their funds. What does this mean for you? Well, put it this way. Say you need $5MM to support your tech innovation. You’ve two meetings lined up, one with a million dollar corporate VC (congrats, on that by the way) and the other with a smaller scale family office. Problem is, that million dollar fund isn’t going to see the returns it’s looking for in the short term. Bigger funds are on the lookout for a bigger, and often quicker, ROI. The best investors look for startups with growth that aligns with their own scale and goals. Find a fund that matches your trajectory and start challenging markets together.


Less risk, more reward

Investors who know your industry will know your competitors. If they don’t, you can guarantee that they have what it takes to quickly find out. To prove that your startup is an opportunity that can’t be missed out on, you’ll need to demonstrate exactly what you have that others don’t. 

Product aside, this could be location, market size, or even nurtured relationships that open otherwise closed doors. Having a competitive edge makes you stand out from the crowd. You’ll already know exactly what this is, but are you demonstrating it clearly enough? There’s a myth about VCs and how they love to take risks. Guess what? It’s not true at all. The best investors only pull their cheque books out when the positives far outweigh the potential pitfalls. So be backable, be lean, and be clear in your message.

Prove your worth

Demonstrating your ability to grow through innovation isn’t half as difficult as it sounds. Actually, it’s pretty easy. How, we hear you ask? Tapping into existing customer relationships and presenting evidence that proves you’re already making a difference is exactly what your future investors want, and expect, to see—and you can do this through social proof.

With that in mind, have you ever considered how your customers would pitch your tech startup to investors? Case studies and testimonials can be pretty commonplace, but what about time-saving exercises? Effort reduction? Cost? Proving your model works through customer-driven data and positive attitudes towards your services proves your profitability. That means more sales, more profit, and more growth. More growth means better investment, because your P&L statement is getting greener every year.

We know better than anyone that investors are still people, though. Things still resonate on a human level, like storytelling, passion, and a commitment to positive change. The numbers matter, but so do the folk behind the finance. That’s why at Diadem Capital we only bring founders and investors together when we’re convinced about their potential.

Connecting your startup with the best investors 

Diadem Capital’s online marketplace brings a wealth of investment opportunities to your front door. For CEOs, think of us as an extension of your fundraising team. For investors, ready to find that diamond in the rough? We’re personable, professional, and here to support you. Sign up today.



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