Getting an offer from the perfect venture capital (VC) partner must begin with research. You can only score meetings with VCs by first creating a targeted outreach list of firms that are aligned with your business.

The first phase of this process is understanding which VCs are a good fit for your company’s goals. The second phase is securing the meeting. This post will give you the tools to accomplish both of these tasks.

Phase I: Create a target list of VCs that are a good fit for your company.

All venture capital firms have a specific focus regarding the kinds of companies they fund: They might invest mainly in software, consumer products, fintech, green technologies, AI or any other number of categories. And each firm focuses on different stages of investment (seed, early-stage, series A, series B and series C). Thus, the first step in reaching out to VCs is research. Here’s how to start.

1. Find venture capital firms that invest in companies like yours.

Create a roster of VCs that are likely to be interested in the kind of deal you’re offering, both in terms of industry and product. Look for firms that have a track record of investing in your industry and have funded companies similar to yours in terms of revenue growth and product focus.

While there are some VC firms that invest in startups in different regions, by and large startups tend to attract investment from local investors. The below resources can serve as a first port of call for entrepreneurs looking to get a picture of the local scene:

Additionally, check out Fund Comb’s list of the world’s largest venture capital funds to familiarise yourself with the heavy hitters of the VC world.

2. Ensure the firm invests in the stage of funding that you seek.

Which stage of financing are you in? Before adding a VC firm to your target list, be sure it’s actively pursuing deals in your stage.

Most venture capital firms share their investment ethos, focus area or criteria on their company website. For example:

  • Reinventure, an Australian VC firm that is backed by Westpac Banking Corporation, invests in startups in the fintech space and adjacent areas, with a focus on nurturing scalable early businesses that have the potential to play a role in the future of the financial services industry.
  • Singtel Innov8, the corporate venture capital fund of Singapore-based telecoms giant Singtel, invests in and partners start-ups with promising innovations and possible applications for Singtel Group’s diverse business needs.
  • India’s NABVENTURES is a venture growth equity fund that invests specifically in agriculture, food, rural businesses and agri/rural financial services at early to mid-stage.
  • Fitness Ventures is a Hong Kong-based investment firm with a core focus on disruptive fitness app, device, and equipment companies with innovative products that are transforming the fitness industry.

3. Check out the firm’s past deals.

Another way to determine if your company fits within a VC’s investment ethos is to review the firm’s recent deals, which you can usually find online.

Even top-ranked venture capital firms like Australia’s Blackbird Ventures openly list their past deals — showcasing the quality of their portfolio helps them attract more top founders. Reviewing them will help you determine if your company fits the firm’s prototype. VCs will also announce when they raise a new fund, or pool of money from investors, to essentially announce to founders that they are looking for companies to invest in.

Sequoia Capital India and Southeast Asia claims a mission of helping daring founders to build legendary companies from idea to initial public offering (IPO) and beyond. Its first dedicated Southeast Asia fund, an $850 million pool of capital, is being used to partner with the next generation of founders on a mission to build enduring companies from the region.

Hong Kong’s Click Ventures has a more specific mandate — it is looking for technology companies whose platforms create network effects to attract and keep users, while building a deep moat around the company (typically intellectual property) that makes it hard for competitors to replicate.

VC firms are transparent about the types of investments they make, so do your research upfront to find out if your company is a fit. You can also work backward: Locate a business similar to yours that has gotten funded and find out which firm invested.

4. Consider the Venture Capital company’s location.

Some firms only invest locally, while others are open to investing beyond their city and country. If you’re based in Australia and one of your target venture capital firms is based in Asia, be sure it makes global investments before sending an email.

It’s worth noting that some regions have more VC funding opportunities and investment volumes than others. For example, total venture capital deal value in Singapore during 2021 came to nearly USD$8.5 billion, according to research by KPMG and HSBC. In Vietnam, it was closer to USD$1.1 billion.

Generally, it will be easiest to get attention from a local firm — particularly for early stage companies. However, if your business is truly attractive to VCs, location will not be a hindrance.

When Australian fintech startup Airwallex successfully completed its Series E funding round, many of the VC firms involved in the capital raising effort were based outside of the country. Salesforce Ventures, Sequoia Capital China, Lone Pine Capital, Hermitage Capital and Tencent were among the international firms to take part in the funding round. Meanwhile, just three investors – Square Peg, 1835i Ventures and Australian superannuation fund HostPlus – were based in Australia.

5. Organise your Venture Capital Investors list.

Targeting investors is like targeting customers, according to Benjamin Chong, a partner at Australian VC firm Right Click Capital. So it’s important to arrange a list of target investors that will be a good fit for your business – or rather, for which your business will be a good fit.

Likewise, 2048 Ventures managing partner Alex Iskold suggests that the more time founders spend preparing and refining their potential investor list, the better. Pitching to everyone isn’t as effective as being disciplined and prepared when it comes to how you pitch your business and to whom.

From Iskold’s perspective, the fastest capital raisers are often those that use the most highly targeted lists. This is why a carefully researched and curated target list is essential when searching for VC funding.

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Phase II: Reach out to your target VCs.

Once you’ve got a target list, it’s time to set up meetings. You have two opportunities to make connections: an intro from someone in your network or a cold email to a VC partner.

The “warm intro”

An introduction to a firm via a mutual connection from your business or personal network is called a warm intro. This is the best-case scenario, as VCs are more open to deals that come from a trusted source.

To find warm intros for your target list, ask yourself:

  • Do you or your company’s team members have any direct contacts at VCs?
  • Are there people in your extended network (i.e. parents, mentors, past employers, friends, professors) who have VC relationships?
  • Does your company have board members with VC connections?
  • Can you utilise LinkedIn or business networking groups to connect with VCs in your area?
  • Have you worked with a business incubator or angel investors that can help open up the next phase of introductions?

The “cold email”

You may not have mutual connections to some VCs on your target list. In that case, it’s time to start cold emailing your targets.

This is the more difficult way to get a meeting, but it’s not impossible. Organisational psychologist and bestselling author Adam Grant suggests that there are a few things founders can do to make cold emails more effective in landing on the right foot with their intended target.

First and most obvious, according to a report by Inc. Australia, is to put the most important information right up front. Second, be ready to connect in whatever way the investor might prefer. Finally, make sure the investor can see that you’ve done your homework.

Create a template.
A general template will be a helpful starting point for your cold email outreach. Put together the critical information about your business and current progress, and state why you’re contacting firms. This email has to grab a VC’s attention, so include any impressive revenue stats, major clients or other eye-catching facts.

Personalise emails to individual partners at each firm.
Broad information about your company can be pulled from the template, but the majority of each email must be personalised for a select partner at each firm. Partners within firms often have a sector focus or areas of interest.

For example, Plug and Play APAC launched in Singapore in 2010 with a view to invest in high tech startups in the region. With its pre-seed backing of Singapore-based startup Alterpacks, which focuses on sustainability solutions using food waste, the VC firm demonstrated an appetite for a broad range of innovation in its portfolio, well beyond its core high tech remit. No doubt, a partner with an interest in, or special focus on, green tech was behind the decision to back the startup.

Research the partner and get a solid understanding of why they’re the person most likely to be interested in your project. In your email, mention the partner’s industry interests or other deals they’ve done that relate to your business.

Be direct and concise.

Get to the point quickly. Everything from your email subject line to the layout of the text should be clear, concisely explaining why your company is relevant to the particular VC.

The big pitch

A meeting with a VC is your chance to pitch your big idea and ask for investment. The pitch will include information about your company and detail the product or service you’re developing. You’ll need to create a pitch deck for this. To learn more, check out The Perfect Pitch Deck and Presentation Style to Secure VC Funding.

The bottom line

Getting connected to the right VC to fund your business takes a thoughtful and targeted approach, which always begins with research. Once you’ve nailed a meeting, though, it’ll be well worth it.