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Equity Fund Raise · Question
Short answer
Work backwards from evidence: list investors who have already put money into companies like yours in sector, size and stage, then study what they funded and how they behave after investing. Approach those that fit through warm introductions, advisers or industry networks. Sending the same pitch to everyone who invests wastes time and signals that you have not done your homework.
Investors differ in what they want. Some back early businesses with new ideas, others fund established companies that need growth money, and some prefer buying control. A mismatch in stage or size is the most common reason pitches go nowhere.
Begin with a screen. Write down your sector, revenue range, profitability, amount sought and what you want from the investor beyond cash, such as market access or operational help. Then look for investors whose past deals match. Public announcements, industry reports, trade bodies, and databases of funding rounds all help build a candidate list.
Next, read their pattern. How much do they typically invest? Do they take a minority stake or seek control? How long do they hold and how do they usually exit? Founders who sold to or partnered with them can tell you how they behave in difficult years, and that matters as much as the cheque.
| Question | Why it matters |
|---|---|
| Do they invest in your sector? | Understanding of margins and cycles |
| Is your size within their usual range? | Avoids wasted meetings |
| Minority or control? | Decides how much say you keep |
| What is their usual holding period? | Shapes exit expectations |
Warm introductions carry more weight than cold messages. A merchant banker, accountant or fellow promoter who knows both sides can often open a door and also help you present the case properly. Fees and mandate terms with advisers vary, so read them with care.
Be wary of upfront demands
Be cautious of anyone who asks for large fees before any real introduction or guarantees an investor. No adviser can promise that funds will be raised.
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This answer is general information, not advice on your particular case. Terms, eligibility, and requirements change, so check the current position with the relevant institution or authority. Lalsar Holdings' financial advisory and financing work is advisory and facilitation only. Lalsar Holdings is not a lender. Sanction and disbursement of any credit facility is at the sole discretion of the partner bank, NBFC, or financial institution involved, subject to their own eligibility criteria and credit policy.