Most founders start looking for investors the day they decide to raise. By then they are already behind. The raises that close fastest usually rest on relationships that started months earlier.
Why timing matters
Investors rarely commit to someone they have just met. They want to see how a business develops over time and whether management does what it says it will. A founder who shares an update in March and then delivers on it by September has built something a pitch deck cannot: a track record in the investor’s own eyes.
Who belongs in the pipeline
Think in layers:
- Existing investors, who know you and may follow on.
- Warm contacts: people in your sector, advisers, customers and suppliers who understand what you do.
- Introductions: investors reached through someone they trust, which carry far more weight than cold approaches.
- Targeted new contacts: investors whose past deals show they back businesses like yours, at your stage and size.
Quality beats volume. A short list of well-matched investors is worth more than a long list of names.
Staying in touch
A pipeline only works if you maintain it.
- Send short, regular updates, quarterly is often enough. Share progress, numbers and the occasional setback honestly.
- Keep a simple record of who you have spoken to, what they are interested in and when you last made contact.
- Ask for advice, not money, in the early conversations. It builds the relationship and gives investors a stake in your progress.
When the raise comes
When you do open a round, the investors in your pipeline already know the story. They have watched you deliver. The conversation starts from trust rather than from zero, and decisions come faster.
Building the pipeline takes time you might feel you do not have. It is almost always time well spent.
Mark Johnson is a Director of BDM Wealth Management, which introduces capital raising opportunities across bonds, loan notes, IPOs and SEIS/EIS. To discuss a raise, get in touch.
BDM Wealth Management is an introduction business and is not regulated. This article is general information, not financial, tax or legal advice, and does not constitute an offer or invitation to invest. Capital is at risk and you may get back less than you invest. For high-net-worth and sophisticated investors only. Take independent professional advice before making any investment decision.
