Finding Investors

Many companies compare the process of finding the right growth capital provider to rolling a boulder up a hill. The process is time consuming, drawn out and inefficient. It is a heavy lift and many companies never quite get to the top. This is the reality of attracting growth capital. Most providers of growth capital be they mezzanine lenders or private equity investors are very selective about what deals they pursue. Most firms will only close about 1-2% of all the deals they screen. That means to get funded, you have to approach 50 to 100 investors. The reality of the numbers is even more daunting given how regionally scattered these firms are. The proverbial "needle in the haystack" is an apt way to look at it. There are several thousand firms located across the US with no specific regional concentration. Each firm is further defined by a number of parameters including:

• Deal size
• Industry focus
• Type of capital
• Type of deal

In all there are about eight categories of growth capital providers. To get funded, you have to approach 50 to 100 of the right type of investors. Given this segmentation, expect to approach 400 to 800 investors to net 50 to 100 of target investors. This is very difficult to achieve on one's own. This is the single biggest reason why companies need to work well connected advisors with an established portfolio of relationships. Attract Capital is well known in the industry and has hundreds of relationships with providers of growth capital. Having spent many years in this industry, we have a wide reach and know how to target and engage the right firms. We have the ability to quickly reach large numbers of targeted investors for our clients.