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Brisbane Times
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May 14, 2013
How do we find a right investor? It all starts with a initial date.
Hezi Leibovich, co-founder of The Catch Group, knows how to justice investors.
Spend any time on an internet dating site and we will immediately recognize a gifted prospects. They’re a ones who, in further to surveying a few pivotal sum about themselves, will also state what they are (or aren’t) looking for in a intensity partner.
Entrepreneurs looking for investors need to use a same approach. Money might be a concentration in many cases but, as with relationships, it’s a other traits that move value to a partnership and make it last.
When my hermit Gabby and we started CatchOfTheDay we had a essential try so weren’t indeed looking for an investor. We had a attractive business, though, and people fast spin meddlesome in us. So it wasn’t prolonged before we started receiving a lot of courting knocks from meddlesome parties, internal and general try capitalists, private and open companies, high net value families and rich individuals.
There were lots of initial dates. It was an honour to be invited for lunches and coffee with people we had usually review about in magazines. However, as assembly after assembly passed, we started to doubt because we were on a financier dating marketplace during all. We had a supports indispensable for a projected growth, so we didn’t need an investor. Or so we thought.
As with many smashing relationships, a stream partner Tiger Global was introduced to us by a mutual friend. At initial we were demure to accommodate nonetheless another general try businessman that wanted to offer us a ‘loan’ and deliberate cancelling. In a impulse that altered a future, we motionless to go after all, out of respect. I’m blissful we did. we review that assembly to a ideal date, anticipating simpatico with someone who accepted us, where we’ve come from, a hurdles and goals. Tiger Global had been on many identical journeys and common a long-term vision, and had a skills, resources, network and passion to assistance us materialize that vision. we saw a attribute where a partnership was some-more than a sum of a parts.
Tiger Global afterwards introduced us to other like-minded people and companies and together they invested in a company. Two years and $80 million later, a investors have delivered all they promised, providing insights, expertise, ideas, connectors and motivation. The attribute has left from strength to strength.
In this regard, a entrepreneur’s observant that success mostly comes from a right kind of disaster is true. My hermit and we learnt from all those unsuccessful dates – a coffees, lunches and a integrate of vessel rides we enjoyed – that there are many opposite forms of investors, any with their possess singular personalities, skills, networks, interests and intentions. We came to know that to form a successful partnership with an financier we would need to find someone whose prophesy and interests were aligned to ours. Fortunately we persevered to find that ‘special someone’.
The Catch Group has now spin an financier in 3 businesses over a final 12 months: vinomofo.com, mumgo.com.au and eatnow.com.au. The criteria for partnership? Passionate founders with a organisation prophesy and interests that aligned to ours. We in spin supposing these founders with knowledge, experience, resources and a appropriation they indispensable to succeed, all of that we trust contributes to a plain relationship.
Questions to ask yourself on a date with an investor.
Personal: Do we like them? Can we work with them in a longer term?
Trust: Do we trust them? Do we honour their opinion, even if we don’t determine with it?
Reputation: What do we know about them? What are a reports from a people who have worked with them? Do they have a good repute with a people we know/respect?
Financial strength: Do they have a lane record of delivering what they promise?
Commitment: Are they fly-by-nighters investing in a trend, or do they trust in my business adequate to stay with me by a tough times?
Knowledge: Do they know my objectives, my goals? Other than funds, do they have something that we want/need?
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