You’ve all heard of Product-Market fit (PMF), but I bet you haven’t heard of Startup-Investor Fit. Because, it didn’t really exist… until now. Startup-Investor Fit (SIF) is the degree to which there is a fit between your startup and an investor - who you are seeking funding from.
Use this checklist for when you are researching funds to invest in your startups. There are an abundance of investors out there - so the goal isn't to reach out to all of them, but to find the one that suits you the most.
This checklist can also be used when you’re taking a meeting - get on a call and go down the list. See if you are a fit for them, as much as you consider if they have what you need as well.
Overview
CRITICAL are the must-haves. Without these things in line, don’t even bother reaching out or trying to convince them to invest. It just isn’t going to happen. If this was dating, imagine this being things you look for most in a potential partner: are they your preferred gender, are they in the age bracket you typically like, are you attracted to them, do you like similar things? And most importantly, do you have chemistry?
ADDITIONAL are the good-to-haves. You wish they had these, but you’re OK if they don’t. Who have they dated before? Can they help you with your project? Do they have a nice family you get along with? Will they come with you on the scary rollercoaster ride?
OPTIONAL are the nice-to-haves. This is where this dating metaphor gets awkward because I can't think of a good parallel for follow-on strategy, and fund performance. But hey, just think about this as bonus points. Do they have your dream car? Are they insanely good at table tennis? Did they go to college with LeBron James? If you have options, then you get to be particular and get to these nice-to-haves.
Why I made this? Every time I do a Twitter Space or Clubhouse, founders ask a question along the lines of “How do I identify the best investors for my startup?”. Well, now you know how. This is by no means is the be-all, end-all, but it’s a start on finding startup-investor fit.
Feel free to send over suggestions on other things early-stage founders should be considering.
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