5.2 Investor Targeting

Growth-Focused Venture Capitalists: These firms provide both capital and strategic support, often bringing expertise in scaling operations, entering new markets or optimising organisational structures.

Corporate or Strategic Investors: Companies may choose to involve investors with complementary business interests who can provide market access, partnerships or distribution channels.

Institutional Investors: Some Series B rounds involve institutional investors such as growth-stage funds or family offices, who may contribute larger amounts of capital and require more formal governance structures.

Alignment and Value Beyond Capital
Choosing investors aligned with the company’s long-term objectives is essential. Investors who understand the market, have relevant experience and can provide strategic guidance increase the likelihood of successful scaling. Misaligned investors, even if offering significant capital, can introduce conflict, distract leadership or pressure the company into unsustainable growth strategies.

Due Diligence on Investors
Founders should evaluate investors’ track records, portfolio synergies, involvement in board governance and reputation in the market. Engaging investors who have successfully supported similar companies through Series B and beyond enhances credibility and strategic advantage.