Define Capital Requirements and Target Investor Criteria
The founder establishes the explicit funding target, target instrument type, and precise decision the investor map must enable. They define parameters for what constitutes a qualified investor based on sector thesis, cheque size, stage preference, and value-add requirements.
Establishing these mapping parameters locks in the required criteria for capital raising and prevents wasted outreach efforts on mismatched funds. It anchors the investor mapping task to realistic valuation and round dynamics, ensuring the venture targets entities capable of leading or participating effectively.
A documented investment thesis brief detailing round size, target valuation, instrument type, and mandatory investor profile criteria. The output must evidence clear alignment between the venture's current growth metrics and target investor mandates.
Five questions an expert would ask when reviewing your output
Use these to challenge assumptions, pressure-test your logic, and check the quality of this action's output in the context of the parent task and wider venture development.
- 1
What specific evidence confirms that your requested cheque size aligns with current market valuations for ventures at your traction level?
- 2
Why have you chosen this particular investment instrument, and how does it affect target investor appetite?
- 3
How do you justify your hard exclusion criteria for investors who do not possess direct sector expertise?
- 4
What data proves that the capital deployment timeframe supported by this round will get you to your next valuation inflection point?
- 5
How does your target lead investor profile change if your first-choice lead syndicate fails to materialise?