Finding Investors and the Black Orchid Night Club
For many of you, the reference to the Black Orchid Night Club will mean nothing. However, if you grew up in Nottingham like me in the 90's it was a bit of an icon.
How does this relate to Investors and Investments I hear you ask...? Well I was asked a question earlier this month and I found myself using this analogy.
The question was, "I am just getting nowhere with these investment companies, they aren't returning my calls or emails - how do I reach them?"
I began to explain... "Seeking investors is much like a night club, those wanting investment are bopping away on the dance floor hoping that an investor will come and dance with them - in expectation that the better they dance or look, the more likely they will be approached".
However, "Around the edge of the dance floor aren't the investors but the IP lawyers, accountants, marketing companies, social media gurus who want to help the businesses with building profiles, technical support and raising awareness (for a fee) - some of these will be brave enough to ask for a dance, but when the lights go up pleasantries will be exchanged and both will realise that the other might not be for them".
“In reality, upstairs is where the investors sit, in the coveted VIP area - with bouncers the size of a house stopping all those without an invite, waiting for the dancers with the most initiative to find them”. The only way to access is to either a) know someone already in the VIP area, or b) find someone with a VIP pass.
So, I said, using my most tenuous of analogies, "don't stop dancing or visiting the night club, but concentrate your efforts on finding those in the club with the right pass to the VIP lounge".
What does that mean for you? What are your next steps?
Do your research, find investment companies or funds that have supported a similar business to your own.
Find out who works for the fund or investment institution if you can.
Work through your own network to see if anyone can introduce you to that business or someone close to it.
If you succeed in breaching the purple rope and walk on the less sticky carpet of the VIP lounge, remember that you will have just the one opportunity to make a good first impression before that house-sized bouncer starts walking over.
Good luck and don't give up.