Over the years, we’ve worked with various ventures that were seeking funding.  We also had a venture or two of our own for which we sought additional funds.   These searches included going public, finding angel investors, and securing venture capital funds.

One of the interesting new funding channel searches is to meet folks on Angel List.   This site helps entrepreneurs and investors meet one another.  It also helps folks find talented individuals to help the start-up reach the next stage of development.

But, to make the best use of this service, you need to be ready to pounce on opportunities.  Which means you don’t just outline your idea or offering, but have a complete “back end” offering  portfolio ready.  (This actually applies to almost anyone seeking funding;  but, for some reason, folks think using an online service is a way to avoid the preparation and cogitations necessary to obtain funding.)

This means having a completed business plan.  One that outlines the moneys needed, the uses of said funds, and the exit strategies possible for the venture backers.  We have discussed business plans often on this blog.  (First steps, as well as here, here, and here, among others.)

Given today’s technology, it probably would be very useful to prepare a short video (five minutes, max) that tells your story, with  a series of questions and answers  to finish the video.  Have this video available on the web- but don’t publicize it- so you can provide a link to respondents who are interested in more information.   This doesn’t have to be a polished presentation- but it should capture your passion and vision, so you can enthuse those who watch it.

You may also find it useful to have your advisors provide additional information.  An explanation as to why they are involved, what intrigued them about your concept, etc. would be useful to add to your presentation materials for potential investors.

Given these preparations, you will be able to immediately respond to all inquiries.  Your response does not have to be elaborate, but should include the link to the video, the advisor(s)’ comments, and a short thank you for their interest.  Your business plan can be provided after the interest is qualified.

This also means you need to track your leads.  Don’t rely on your memory- because you will need to refer to this list of contacts and conversations to insure progress.  We find a spreadsheet or database that can be organized by contact person, affiliation, and phone number to be critical.  You will also add in their eMail information, twitter links (to get an idea of what they really think or pass along to others), links to corporate and personal profiles, the funding amount typically invested, and notes on the conversations (verbal or written), as well as the date(s) of the contacts.

More importantly, you are going to rate the investors.  Not only by how much money they may be interested in providing, but their interest in your concept (and your interest in them).  A simple scale (no more than 1 to 5) should be used.  We use 1 to 3 and each choice is additive, so that a score of 9 would be a perfect match and a 3 would be a dead end.

When you have all this  prepared, you are ready to find your match.  Let us know how you do.

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