Business angels, family offices, funds: who finances what?
Each type of investor has its own logic, horizon and expectations. Knowing them saves you from approaching the wrong people.
Many raises drag on because the founder approaches investors whose thesis does not match the company's stage or sector. Before building your list, identify the families of investors relevant to your file — and what they ask for in return for their cheque.
The main families
| Investor | What they finance | What they expect |
|---|---|---|
| Friends and family (love money) | The very first steps | Trust in the founder |
| Business angels | Seed stage, often in their own field of expertise | A project they understand, a mentoring role |
| Investor networks and clubs | Seed and early rounds, as co-investors | A file presented according to their selection process |
| Family offices | Direct deals, often with a long horizon | Access to management, clear governance |
| Venture capital funds (VC) | Very high-growth companies | Significant exit potential |
| Growth capital and private equity funds | Companies that are profitable or close to it | Financed growth, sometimes a change of ownership |
| Corporates (CVC) | Companies close to their own line of business | A strategic interest on top of the financial one |
| Online investor communities | Companies able to rally their customers and network | A clear story and regular updates |
What about debt?
Bank loans, public loans (notably from Bpifrance, the French public investment bank), bonds or revenue-based financing do not dilute the equity, but they require the ability to repay. An equity raise and non-dilutive financing are often combined: equity strengthens the balance sheet, which then makes it easier to borrow.
How to build your list
Filter by stage
A fund that invests at Series B will not look at a seed-stage project, however good the file.
Filter by sector and ticket size
Look at each investor's past investments: they are the best indicator of their thesis, far better than their “about” page.
Look for an introduction
An introduction by a founder who has already raised funds, or by an adviser, is much more likely to succeed than an unsolicited e-mail.
Keep track of your conversations
A simple table (contact, date, stage, next action) stops you losing track of a list of twenty to fifty names.
There is no “best” investor in absolute terms: there is the one whose thesis matches your file today. A community of qualified investors can complement this list rather than replace it, especially for mid-sized tickets where neither a lone business angel nor a Series A fund is the right fit.