Donor/Investor relationships

Posted on at


How an organization goes about raising capital depends on its needs, type and size. Social enterprises and impact oriented organizations may look to organizations like Unltd and Intellecap to assist in the process of finding investors to invest in their organizations. These organizations can introduce investors and donors to organizations seeking investments. The size of the organization usually determines how much capital they are trying to raise and the types of investors they are targeting. Microfinance organizations and investment banking divisions play a key role in such partnerships between donors and investors. They are continuously expanding their networks and building relationships with investors and investees. They can determine from the investors needs which organizations may be best suited for them to invest in.

Individuals seeking investors should have a certain level of transparency within their organization and clearly defined reason why they are seeking investments. What will the investments be used for, how will the return of investments be measured and how much capital they need. From there a pitch is developed that includes what the organization is about, impact created and how much capital they are seeking. From there they start to go through their networks seeking investors and developing relationships with potential and previous investors. Investors have their own network so they can connect organizations to other investors who may be interested and in the position to invest in an organization that has approached them. Leaving a good impression on a potential investor is vital because even if they say no to invest in your organization, they may know someone who can and introduce you to that person.

When an investor agrees to invest in your enterprise, their expectations must be managed and the more investors you have the more difficult it can become to manage all of their expectations. Investors that feel their expectations are not being met or their investment is being ill managed may cut off future investments and influence other investors not to invest in your organization. Every investor has their reason for investing in an organization and the kind of results they want to see. The impact created from the investment needs to be measurable with a level of transparency so that investors can see how exactly their investment is being used. Maintaining positive investor/investee relationships is important for organizations that are seeking capital or will be seeking to raise capital in the future.



About the author

A_O

Curious about the world and searching to find what I can give back to the world to make it a better place for others.

Subscribe 0
160