With investment activity reaching a three-year low in Q2 of 2023, it is clear that we are deep in the midst of a winter fund.
However, founders with their Series A on the horizon face tougher odds. US seed startups were least affected by the funding downturn as investors opted for smaller deals versus more expensive late-stage rounds. While this is good news in the short term for new startups, today there are more seed stage companies than ever in the pipeline and the average funding time between seed and Series A is 25 months.
Having a stellar pitch deck will encourage investors to bet on your idea, but how do you convince anyone without first getting a meeting?
In 2023, founders will need to actively court the attention of investors to get their foot in the door. LinkedIn provides an extremely valuable resource here. With more than 950 million professional members worldwide, the platform offers an extensive database that can be used to research potential investors, make new connections and nurture these relationships with a methodical process that directly sets the stage before it’s time to raise your Series A.
Here we break down a strategic four-step approach that will help you increase your reach and visibility among LinkedIn investor networks.
Develop your network of investors
While you likely already have many investors in your network, the first stage of the process will focus on growing this pool significantly. A study that explored the success of job seekers on LinkedIn found that networking with weak ties (a larger set of people you don’t know very well) resulted in more jobs than strong ones. relationship. For founders preparing to raise funds, the same science holds.
Not every request will result in a new connection, but with patience and persistence, your pool of investors will begin to grow.
As with any lead generation process, the ability to track progress and measure results is central to this strategy. This means that the first order of business is to compile a comprehensive database of potential investors.
Take your time to research here. With LinkedIn, you have access to a large directory, so discovering a wide range of investors related to your startup cannot be achieved in the first couple of search returns. Starting with the most obvious keywords like “investor” + “industry” is a logical starting point but you’ll want to be creative with your search queries beyond this. For example, many investors are looking to support founders from a specific background or fund startups that align with a specific impact factor, but finding these types of synergies will require you cast your net wider by using the advanced search function.