Profiling Your Investor

More often than not you would want to fundraise with a certain expectation of closing the round within X months, yet the process might take months and you might very well be running on cash deficit when it becomes X+Y months. So, what would you do? Pay your team with I-OWE-COUPONs? Not that you have a choice when your bank account is empty (yet you still have to pay the bank fees for maintaining your account).

At a recent sharing session, I was highlighting about the importance of being able to profile your prospect investors. This is precisely to handle the kind of scenarios mentioned about. I believe many investors have elaborated on this subject before. So I am just going to share with you my version of investor profiling. Ta-da! (Look down, I mean below this paragraph not under your table.)

VC Groupling table

I call this the “Groupling Table”! So to help you understand, see below again (you should get it by now)

Hungry Leader – VC who looks to lead your round and generally having higher risk appetite to new ideas and ventures.
The “Let’s See” – Typically the type that follows other investors and have less tendency to be the first one to jump onto an investment opportunity.
Decisive – VC that gives you an answer quick enough.
Deci……..sive – VC that gives you a maybe for an answer or just never gets back to you.

I would think it is useful to know the type of investors that you are dealing with and subsequently figure out how to get a decision out of them. Of course, it is always advisable to be: clear, specific and friendly towards your prospect investors. So that they won’t kick you out of their office!

P/S: All the above are merely my personal rant and shall not be taken into account  reaaaaalllyyy serious decision making.