The art of building your investor lead list
Tools and techniques for founders
Raising capital is one of the most challenging parts of building a startup, especially in the early stages - but it ain’t rocket surgery.
The good news? Finding the right investors can be more strategic than serendipitous - spray-and-pray email spamming everyone doesn’t work, also you’ve got to get smarter. Take a methodical approach by building an investor lead list—a targeted list of potential investors who are a fit for your company and goals.
Here’s how to master the art of creating that list, with tools and techniques that can make the process smoother and more effective.
Start with Your Fundraising Strategy
Before you even begin building your lead list, take a step back. How much money are you trying to raise, and what are you going to do with it? Investors need to see that you have a clear plan for how the funds will be used and that your goals are aligned with your business’s next growth phase. If your fundraising strategy lacks clarity, you’ll find it much harder to convince investors that you're worth their time.
Once you have your plan in place, it’s time to start building your investor lead list.
Step 1: Define Your Ideal Investor
Investors are not a one-size-fits-all group. Some specialize in certain industries, others focus on specific geographies, and many have stage preferences (e.g., pre-seed, seed, Series A). Knowing who you’re looking for helps to refine your search and saves you time. Are you looking for angels or institutional investors? Do you need a specialist in your industry, or will a generalist work just as well? Answer these questions before diving into your search.
A few categories to consider when defining your ideal investor include:
Industry expertise: Does the investor have experience in your sector (e.g., AI, hardware, proptech)?
Geographical focus: Does the investor prefer to invest in companies located in a specific region?
Stage preference: Does the investor invest in pre-seed, seed, or later-stage companies?
Investment thesis: Some investors only invest in companies that meet certain social or economic criteria (e.g., impact investors).
Once you’ve defined what kind of investor you're looking for, it’s time to find them.
Step 2: Use Investor Databases
The internet is your friend when it comes to investor research. Several tools can help you find the right investors and gather valuable insights about them.
Crunchbase is a popular platform for startups to research companies and investors. You can search for investors based on location, investment type, and industry. It also provides information on previous investments, which helps you determine if an investor has backed companies like yours before.
Crunchbase has both free and premium options, with the premium offering more advanced filters and data. For most early-stage startups, the free version should suffice.
NFX Signal is another powerful tool specifically designed for fundraising. It integrates with your Gmail account, revealing connections between you and potential investors. This tool shows you how closely you’re connected to the investors you want to reach and who in your network could make an introduction for you. The platform allows you to search for investors based on their stage and sector preferences, making it an excellent tool for honing in on relevant leads.
FounderSuite is a comprehensive platform specifically designed to help startups with fundraising. It offers tools for building your investor pipeline, managing communications, and tracking your progress. One of its standout features is its investor CRM, which allows you to organize and manage investor relationships in one place. Additionally, FounderSuite provides access to an investor database, giving you insights into investors based on stage, industry focus, and geography. It’s particularly useful for founders who want an all-in-one solution for both research and outreach.
PitchBook is the industry standard for investment research, but it comes at a cost—a very high one. Venture capital firms and large organizations typically use it because it provides in-depth financial information and analysis.
If you can afford it or have access through an accelerator program, it’s an invaluable tool for finding investors who are actively looking to invest in companies like yours. Otherwise, Crunchbase, NFX Signal, and FounderSuite are great alternatives.
Step 3: Organize Your Leads in a CRM
Once you’ve used these tools to generate a list of potential investors, you need to organize that list. Enter: Customer Relationship Management (CRM) systems. While you might think CRMs are only for managing customer contacts, they’re perfect for tracking investor outreach as well.
HubSpot is a popular, free CRM option that allows you to track communications, set reminders for follow-up emails, and keep notes on investor preferences. The benefit of using a CRM like HubSpot is that it centralizes all your investor data in one place. If you’re serious about fundraising, a spreadsheet simply won’t cut it long-term.
If you prefer a more visual and flexible approach, Airtable is a fantastic option. Think of it as a cross between a spreadsheet and a database. You can create custom views to track the status of investor outreach, make notes on interactions, and link relevant documents. Its versatility allows you to build your lead list exactly how you want it.
Personally, I like to use Streak - the Gmail integration is super powerful - but ultimately it’s a tool that you need to work for you and your use cases. Choose what works best for you!
Step 4: Research and Qualify Your Investors
Not every investor on your list is going to be a good fit, so it’s important to qualify them before reaching out. What does that mean? Research their portfolio companies, read their blog posts or interviews, and get a sense of their investment philosophy.
Look for answers to questions like:
What’s their average check size? Some investors won’t write checks smaller than $5 million, while others focus on micro-investing in pre-seed rounds.
Do they lead rounds? Not every investor likes to take the lead in funding rounds, so if you're looking for a lead investor, this will be a key piece of information.
What’s their deal flow like? Are they actively investing right now? Some funds pause investment activities to focus on portfolio management, or when they’re raising another fund.
And, of course, as mentioned above - do they invest in your geography, sector, and stage? If not - back to the drawing board!
Step 5: Start Reaching Out
With your investor lead list in hand, it’s time to start reaching out. If you can get warm introductions, great! Use your network and tools listed above to find mutual connections. But don’t shy away from cold outreach—it works when done right. Be clear, concise, and compelling in your emails, and tailor your message to each investor’s interests and preferences.
Building an investor lead list isn’t a one-time task; it’s an ongoing process. As you grow and evolve, so will your list. Stay organized, keep researching, and always refine your outreach. The right investors are out there—it’s up to you to find them.
Learn much more
Did you know: Our Ready to Raise in 14 days course will teach you everything you need to know to put together a world-class pitch in just two weeks.